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MINISTER FOR HOUSING Eoghan Murphy has said local councils are being asked to show “flexibility” to people applying for a government-backed mortgage scheme during the Covid-19 pandemic.
He said that councils should “extend time periods as necessary” to people who may be experiencing difficulties arising out of the Covid-19 restrictions through the Rebuilding Ireland Home Loan (RIHL) scheme.
It comes as the latest figures show that €177 million was paid out through the scheme to allow first-time buyers secure mortgages last year. Under the scheme, applicants can get up to 90% of the market value of the property if deemed eligible.
The RIHL differs to other government schemes such as the Help to Buy scheme, which is an incentive for first-time buyers to get a tax rebate on a new build home.
You apply for this scheme through whatever local authority you’re seeking a mortgage in, and the individual council will decide on the application and issue the mortgage if accepted.
The RIHL applies to any home, and its broad eligibility criteria means that individuals with an income up to €50,000 or a joint income of €75,000 can apply.
However, the popularity of the scheme exceeded the government’s expectations – and, crucially, the funding that had been set aside for it.
The initial funds provided by the government were €200 million, but TheJournal.ie reported in March last year that the Department of Housing was seeking to sanction a further €600 million to keep it going over the next three years.
The uncertainty over the future of the scheme led to some families being left in limbo while they waited to hear if they’d secured a mortgage to purchase a home.
Furthermore, in a move described by the opposition as “cold, harsh and sneaky” prior to this year’s general election, the interest rates for the scheme were also raised.
Future funding of the scheme was secured, however, late last year.
In response to a parliamentary question last week, Minister for Housing Eoghan Murphy said that an increase of funding of €363.6 million was granted for 2018-19 while an additional €120 million had been secured for 2020.
Murphy said it had been “recognised” that current applicants to the scheme may be experiencing difficulties arising out of the Covid-19 pandemic.
These could include “accessing financial documents; property visits and valuations; solicitors visits, etc.”
“Therefore, local authorities are being asked to show flexibility when dealing with applicants at all stages of the Rebuilding Ireland Home Loan process from application through to approval, drawdown and (where relevant) appeal and should extend the time periods as necessary to accommodate those who may be experiencing difficulties arising out of Covid-19 restrictions,” he said.
For existing applicants, local authorities are advised to ensure that final loan offers are made based on up to date financial and employment data from applicants, as appropriate, having regard to the implications that Covid-19 has had for many businesses and employers.
In a separate answer, he said that local authorities should also be “prudent” with their lending and said a decision on whether to withdraw or vary a loan offer is one for each local authority.
Murphy also pointed to the latest statistics from the Department of Housing which give a breakdown of how much was approved and paid by the scheme last year by local authority.
There were over 1,000 applicants granted and allowed to draw down a loan for their mortgage under the scheme last year.
Of these, €177 million was given out in mortgages to applicants to use to purchase their home. Dublin city had the highest number of applicants paid out, with 50 in the last quarter, alone.
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Great initiative by the teachers and school
Well done.
I hope all those who have been bashing teachers over the last while read this
@Nell foran: one school doing something good doesn’t take away from the fact that many others didn’t bother with their students once the schools were shut. If it was a negative article you wouldn’t say you hope people praising schools take it into account because all schools are separate and can’t be put in the same bucket. Some schools and teachers have been amazing but a lot haven’t and it’s a disgrace and needs to be addressed.
@D: agreed, I know some teachers have put in a great effort, but many haven’t bothered and left their students in limbo.
Their performance during this should be reviewed.
@D: just like all students and people in general
@Huey: same as students some headed for the hills at lockdown and never bothered. Look you can say that about anything. It’s so easy to write shit when you don’t actually understand. Poor broadband might have caused lots of bother too. But yeah we go with your negative outlook
@Jim Casey: you cannot compare students and teachers like that. There’s always going to be students who don’t bother and don’t care, that’s going to happen no matter what but it’s a teachers job to educate their students. No one expected life to be like this but the rest of us that are still fortunate to be able to work are continuing to do so from home. If someone in another sector decided they weren’t bothered working while still getting full pay, there would be consequences
@Jim Casey: I do understand Jim.
I’ve seen the difference in teachers performance through various families and friends and the level of engagement from their schools as will alot of parents reading will attest.
My son’s school complied an amazing online graduation as well, with videos from well known public figures. It was emotional for the whole family, the culmination of 6 years of education delivered remotely. Hats off to the teachers and the graduation class of 2020.
Fair play . Lovely idea
Well done to them. Fair play to the school and teachers. Brilliant job
Such an awful year for so many kids. They’ve missed out on rites of passage moments. No end end of school celebration, grads/debs cancelled, no leaving cert, transition to college will likely be simply a move from one online platform to a different one. They’ve been locked up with no structure in terms of school, sport, dance, drama, choir etc. They’ve been labelled superspreaders and vectors of the virus, banned from supermarkets. They’ve no chance of a job for the summer, no holidays. I’ve a 17 year old and the impact this is having on him is heartbreaking.
@Anne Marie Devlin: Most of the kids you talk about are adults
Balling reading this. It’s not fair on them. But thanks so so much for the efforts the teachers are going to. Not just here, across the country.
Well done Old Bawn, leading the way in student care
Well done teachers , that’s really thoughtful
While the teenagers caused havoc around the country even attacking Garda in salthill.
@Colin McCarthy: a very small number of teenagers causing havoc you can’t tar them all with the same brush
D,
Support that statement about some schools and teachers abandoning their students. With refrences and sources supplied please.
have your say