High Mayo refusal rate in home loan scheme

Up to 79 of the 124 Mayo applications received under the Rebuilding Ireland Home Loan Scheme since 2018 have been turned down, it has been revealed.

The national Housing Agency provides a central support service which assesses applications for the Rebuilding Ireland Home Loan on behalf of local authorities and makes recommendations to the authorities to approve or refuse applications.

Each local authority must have in place a credit committee and it is a matter for the committee to make the decision on applications for loans, in accordance with the regulations, having regard to the recommendations made by the Housing Agency, Minister Darragh O'Brien has outlined.

The most recent figures, as at the end of March 2021, from the agency on the numbers of applications that it has assessed and recommended for approval/decline for each local authority since the scheme began in February 2018 show that of the 124 Mayo applications made, only 45 were granted.

Up to 7,949 applications were made nationally -and 4,0007 were unsuccessful.

The most common reasons for applications being declined are:

* Repayment capacity not demonstrated.

* Net income ratio outside of policy.

* Unsatisfactory savings record.

* Unsatisfactory ICB report.

* Outside credit policy.

* Unsatisfactory financial management

Added the minister: "The final decision on loan approval is a matter for each local authority and it’s credit committee on a case-by-case basis.

"Decisions on all housing loan applications must be made in accordance with the statutory credit policy that underpins the scheme, in order to ensure consistency of treatment for all applicants.

"Loan applicants who are dissatisfied with a loan application decision of a local authority credit committee may appeal that decision to the local authority."