A Waterford TD says families are in dire straits because of a government-backed mortgage scheme.

First time buyers, who have been refused a mortgage by two banks, can apply to their local authority for a loan.

However, the Home Loan Scheme, which was set up in February of last year, has run out of money for new applications.

Waterford Council has provided loans to 15 applicants with 11 more approved and awaiting funding.

Fianna Fail’s Mary Butler wants to know if more money will be made available for them.

She highlighted one case in Waterford.

“A family living in Waterford who had been renting for the past nine years successfully applied for a Rebuilding Ireland home loan from Waterford council.

“The family then engaged a solicitor, agreed the purchase of a house, including furniture and contents, gave notice on the house they were renting and sold some of their own furniture which would not suit their new home.
“However, when the solicitor applied to draw down the funding, as approved, the council could not provide the money as it had well exceeded its allocation.

“As I said, the council was allocated €2 million but has already spent €2.6 million.

Deputy Butler added “all of the necessary reports were supplied and almost three weeks ago, the family reached the sale agreed stage.

“They had a pre-mortgage meeting with Waterford council, engaged a solicitor and were told that they would receive the money within two to three weeks.

“Now they have been told that Waterford council has run out of Rebuilding Ireland home loan funding.

“This is only one story among many. This family is currently in limbo. The whole chain of events is now held up, with several parties affected.”

Minister of State John Paul Phelan says discussions are ongoing about further funding for the scheme.

“In the meantime, the scheme remains open and applicants can be confident that this will continue to be the case.

“All local authorities should continue to receive and process applications, up to and including draw down of funding, as appropriate.

“The Deputy outlined a specific case and many Members have come across similar cases. I will endeavour to get a more specific timeline on the extra tranche of funding for Deputy Butler.

“I hope I have provided some solace for families in similar situations. I accept that this is a very difficult time for the family referred to by Deputy Butler but I will try to get as specific a date as possible.”