Dáil Éireann Debate, Tuesday - 12 July 2022
420. Deputy David Stanton asked the Minister for Housing, Local Government and Heritage if he has given consideration to granting eligibility under the Fresh Start principle to the local authority home loan scheme to applicants in cases in which a relationship had existed and has ended but who had not been married and in cases on which they no longer retain a beneficial interest in a home; and if he will make a statement on the matter. [37580/22]
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 applies for applications to the Local Authority Home Loan to the following categories of persons:
- Applicant(s) that previously purchased or built a residential property, but is divorced/separated or otherwise and has left the property and divested themselves of their interest in the property are eligible. Where a couple was in a relationship but not married, and the relationship has ended, the Fresh Start Principle can apply.
- Applicant(s) that previously purchased a residential property, but have 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 www.localauthorityhomeloan.ie.
