The government has authorised an increase in the lending rate under the Rebuilding Ireland Home Loan Scheme.

Labour's Housing spokesperson Jan O'Sullivan TD voiced disappointment that neither home loan applicants nor local authorities were advised of a possible increase, labelling the move as sneaky.

"This change makes no provision for individuals or families with applications already under consideration, and will no doubt exclude a significant cohort of people who just won't be able to use the scheme," Deputy O'Sullivan said.

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"Others face a lowered borrowing ability and paying thousands in additional interest payments.

"This cold harsh move shows that Fine Gael has no concept of affordability for ordinary working families nor have they any idea of the desperate housing reality that so many are facing. 

"The increase is a result of an increase of 0.745% contribution to the Mortgage Arrears Resolution Process Premium Fund (MARP) from its existing rate of 0.25% to 0.995%.

"I would like to know what the rationale is behind the move for almost quadrupling the contribution to this fund, and on what evidence it's based.

"The Rebuilding Ireland Home Loan scheme is working well and offers families and individuals the opportunity to put a secure roof over their heads."

(CM/JG)