State mortgage plan for first-time buyers

By Charlie Weston Personal Finance Editor

Irish Independent Saturday October 11 2008

A RADICAL plan to allow first-time buyers to purchase new houses with a mortgage financed by the State is set to be unveiled in the Budget, the Irish Independent has learned.

The move would allow new buyers who are struggling to meet strict conditions imposed by banks and building societies being able to borrow up to €300,000 from the Government.

Mortgage brokers have been approached and asked if they would be willing to arrange the State-provided home loans. Sources indicated that the brokers would be paid a set fee, thought to be around €1,000, for arranging the mortgages.

The new scheme, to be announced in next Tuesday's Budget, will be restricted to the purchase of new homes only, which is likely to lead to criticism it will end up giving developers a dig-out.

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