A government-backed scheme designed to make it easier for first-time buyers to get a mortgage has raised its interest rates in the past week in a move the opposition has described as 'sneaky'.
Image: Shutterstock/Big Ray Image: Shutterstock/Big Ray A GOVERNMENT-BACKED scheme designed to make it easier for first-time buyers to get a mortgage has raised its interest rates in the past week in a move the opposition has described as “sneaky”.
The government’s Rebuilding Ireland Home Loan scheme was launched in January 2018 with funding to the tune of €200 million over a three-year period to provide loans for first-time buyers. In frequent parliamentary answers, Minister Eoghan Murphy has said “the low rate of fixed interest associated with the [RIHL] provides first-time buyers with access to mortgage finance that they may not otherwise have been able to afford at a higher interest rate”.
For example, using the loan calculator on the RIHL website, a 30-year-loan mortgage for a property worth €320,000 in Dublin for a single person earning €40,000 had an “indicative monthly repayment” of €765.The move also comes after Ulster Bank cut its interest rates in an announcement made just yesterday.
Related Reads 03.08.19 Ongoing lack of clarity on funding is 'not inhibiting' popular mortgage scheme in any way, says government 24.03.19 Loan scheme for first-time buyers needs another €600m - but government yet to decide on stumping up cash 06.03.19 Murphy insists funding for first-time-buyer loan scheme 'has not run out'
O’Sullivan said she’d like to know “what the rationale is behind the move for almost quadrupling the contribution to this fund, and on what evidence it’s based”.
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