Scheme to help people on lower incomes approves almost €1bn worth of mortgages

Just 48% of all loan approvals have been drawn down with 36% having allowed their approval to lapse and a further 16% still outstanding at the end of last year.

A Government scheme to help people on lower incomes purchase a home is “not likely to be having a distortionary effect” on the housing market, a new report has suggested, having approved almost €1bn in mortgage loans over a four-year period.

The Local Authority Home Loan, formerly the Rebuilding Ireland Home Loan, has seen a total of €981.7m worth of mortgages approved against a budget of just €776.3m.