State-backed mortgages boosted by extra €363m

19 September 2019

Publication: Irish Independent

Author: Michael Cogley

The Department of Housing has secured an additional €363m in funding for its State-backed mortgage scheme.
The Rebuilding Ireland Home Loan scheme is targeted at prospective buyers who cannot get a bank loan. It has experienced higher than expected demand since it was launched in February 2018.
Originally, €200m was set aside to be loaned out over a three-year period until 2020. However, due to the popularity of the scheme the Government sought extra funding.
The Sunday Independent reported in March that housing minister Eoghan Murphy had sought an additional €600m to bring the scheme up to 2021. Instead, the new funding will capitalise it until the end of this year.
"When the scheme was initially being developed, it was estimated that the draw-down of loans would be approximately €200m over three years," Murphy said in answer to a parliamentary question. "However, it proved to be more successful than initially anticipated."
Murphy said that after "positive engagement" with Finance Minister Paschal Donohoe, the Department of Housing wrote to all 31 local authorities informing them that further funds had been made available for the scheme. The new funds bring the total value of the loan scheme up to €563m.