Dáil Éireann Debate, Tuesday - 25 January 2022
97. Deputy Eoin Ó Broin asked the Minister for Housing, Local Government and Heritage if he will provide further details on the way that a person who has been through the insolvency process can access the local authority mortgage scheme. [3326/22]
View answerThe Local Authority Home Loan is a Government backed mortgage scheme for those on modest or low incomes who cannot get sufficient funding from commercial banks to purchase or build a home. It has been available nationwide from local authorities since 4 January 2022 for first-time buyers and fresh start applicants. The loan can be used both for new and second-hand properties, or to self-build. A ‘Fresh Start’ principle also applies for applications to State affordable housing schemes.The following categories of persons are eligible to apply for the Local Authority Home Loan under the Fresh Start principle:
- Applicant(s) that previously purchased or built a residential property, but is divorced and has left the property and divested themselves of their interest in the property are eligible.
- Applicant(s) that previously purchased a residential property, but has been divested of this through insolvency or bankruptcy proceedings, are eligible to apply. The applicant must be discharged from bankruptcy proceedings. It should be noted that a return to solvency should not be interpreted as a return to creditworthiness, which is a separate assessment.The final decision regarding the Local Authority Home Loan application is made by the relevant Local Authority Credit Committee on a case by case basis.Further details can be found on localauthorityhomeloan.ie/
