Thursday, 2 December 2021
Department of Housing, Planning, and Local Government
57. To ask the Minister for Housing, Planning, and Local Government the proposals, if any, there are to improve the criteria for the Rebuilding Ireland mortgage scheme, taking into account the difficulties that have arisen for some households with the present criteria (details supplied); and if he will make a statement on the matter. [59680/21]
The Rebuilding Ireland Home Loan is available to first-time buyers only. This is set out in the regulations governing the Scheme. However, applicants who are separated or divorced may be treated as first-time buyers, in accordance with the regulations, if they meet certain conditions, including:
- they are separated or divorced under a court order or by a separation agreement;
- the property being purchased is the first property since leaving the family home;
- they have left the family home and retain no interest in it; or
- the other party has remained in the family home.
In meeting the conditions as set out above, in particular that the other party has remained in the family home and that the potential applicant has relinquished any rights they had over that property, no financial gain should have been made by the potential applicant in exchange for relinquishing their rights to the property in this manner. Were the individual to have made a financial gain in releasing their rights to the property, such as being bought out by the other party who remains resident in it, they would be deemed to have been compensated for their interest in the property, and therefore not be eligible as a first-time buyer.
The final decision on loan approval is a matter for the relevant local authority and its credit committee on a case-by-case basis. Decisions on all housing loan applications must be made in accordance with the Regulations establishing the scheme and the credit policy that underpins the scheme, in order to ensure prudence and consistency in approaches in the best interests of both borrowers and the lending local authorities.
As part of Housing for All, I announced that a ‘Fresh start’ principle will apply to applications to State-run affordable housing and loan schemes in future. This means that people who are divorced/separated and no longer have a financial interest in the family home, or who have undergone bankruptcy or insolvency proceedings, will be eligible to apply for State loan schemes.
I look forward to announcing further details in respect of the new Local Authority Home Loan, the successor to the Rebuilding Ireland Home Loan, in the coming weeks.