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New scheme would help first-time buyers get foot on property ladder

The scheme, which is being examined by the Department of Finance, would see the State guarantee a proportion of mortgages.

Image: Mark Stedman/Photocall Ireland

THE GOVERNMENT IS currently examining proposals to help first-time buyers secure mortgages.

The Irish Independent reported today that the scheme would see the State guarantee a proportion of loans of up to 95 per cent of the property value for first-time buyers.

There are similar schemes in place in Britain, Australia and Canada. It is hoped a scheme such as this would boost house building and encourage banks to lend more.

In a statement this morning, the Department of Finance said it is examining all options to ensure appropriate balance between demand and supply in the housing market.

“Consideration will, in particular, be given to the concept of a mortgage insurance scheme for new housing completions in the Irish market,” it said. “The objective of any scheme would be to ensure adequate availability of mortgage finance on affordable terms for new completions, particularly for first-time buyers.”

The department said the introduction of any such measure will be contingent upon the preparation of an economic impact analysis which will be assessed on how it will operate in the context of the Irish housing market.

Read: Is this the solution to property bubbles?>

Read: Too much debt and not enough houses: Ireland’s creditless recovery is here to stay>

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