Fine Gael Calls To Scrap Builder's Bailout

Fine Gael have said today the €500 million Home Choice Loan Scheme must finally be scrapped after it emerged only four people applied in full for it.

Describing the scheme as "a bailout for developers", Housing Spokesman Terence Flanagan said that the Scheme should never have been introduced in the first place and it is clear it now must be abandoned.

"Nobody is fooled by this Scheme. It is nothing but a €500 million bailout to Fianna Fáil's friends in the construction industry and buyers want no part of this Scheme that aims to keep prices artificially high," said the minister.

He added: "The Construction Industry Federation, met directly with the Housing Minister prior to the October Budget, lobbied for this exact scheme and received precisely what they asked for."

According to the Home Choice Loan website, the scheme is a mortgage for First Time Buyers, provided nationwide by four designated Local Authorities.

First time buyers can apply for a Home Choice Loan to purchase a new property or build their own home with the scheme providing up to 92% of the market value of a property purchased. The maximum loan amount is €285,000.

The loan is a normal Capital and interest-bearing mortgage, which is repaid on a monthly basis.

"While initiatives to help first time buyers into the property market are welcome, this scheme was unsuitable and was designed to benefit developers.

"It should never have been introduced and must be scrapped," the minister said.


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