Michael McGrath (Cork South Central, Fianna Fail)
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1576. To ask the Minister for Housing, Planning, and Local Government the reason persons who purchased a house under the affordable housing scheme are unable in practice to switch the mortgage from one lender to another (details supplied); and if he will make a statement on the matter. [15938/18]

Eoghan Murphy (Dublin Bay South, Fine Gael)
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Purchasers of dwellings under previous affordable housing schemes, including dwellings sold by way of shared ownership at less than market value, have a clawback charge placed on the property.  The primary purpose of the clawback regime was to prevent short-term profit-taking on the resale of affordable homes.  As such, it should, therefore, only have effect in the event of the house being sold.  However, as a result of the way in which the clawback legislative arrangements are structured, they have an impact on affordable homeowners wishing to switch mortgage provider or take out an equity release “top-up” mortgage.  This arises because of the time-sensitive manner in which charges on property apply.  

The Housing (Miscellaneous Provisions) Act 2009 which will be commenced shortly will allow purchasers under the new Affordable Dwelling Purchase arrangements to re-mortgage or top-up their mortgage without triggering the clawback. The Act, however, does not provide this facility retrospectively for purchasers under previous affordable housing or shared ownership arrangements. I have requested my Department to arrange to have the provisions necessary to address this matter included in the first appropriate legislative vehicle that becomes available.

Michael McGrath (Cork South Central, Fianna Fail)
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1577. To ask the Minister for Housing, Planning, and Local Government the penalties which will apply and the formula in this regard for calculating such a penalty, in circumstances in which a person takes out a Rebuilding Ireland home loan fixed rate offer in the event they sell their property after a period of time or wish to switch their loan to a commercial lender; and if he will make a statement on the matter. [15940/18]

Eoghan Murphy (Dublin Bay South, Fine Gael)
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The new Rebuilding Ireland Home Loan enables credit-worthy first-time buyers to access sustainable mortgage lending to purchase new or second-hand properties in a suitable price range. The low rate of fixed interest associated with the Rebuilding Ireland Home Loan provides first time buyers with access to mortgage finance that they may not otherwise have been able to afford at a higher interest rate.

During the period of a fixed-rate mortgage, persons may be liable for a breakage fee if they switch to a variable rate or pay off all or part of their mortgage early. A breakage fee will only apply if, at the time of breakage, the costs of funds to the local authority at the prevailing market rate, result in the local authority incurring a loss in repaying its loans to the Housing Finance Agency.

The details in relation to this, including the formula to be applied in such a case, are on the Rebuilding Ireland homeloan website at/.