Dáil Éireann Debate, Tuesday - 25 April 2023
327. Deputy Seán Haughey asked the Minister for Housing, Local Government and Heritage if he will open up applications for the local authority home loan to those who wish to 'buy out' an ex-partner/husband/wife from a property so that they can remain in the family home with their children; and if he will make a statement on the matter. [19274/23]
View answerThe Local Authority Home Loan is a Government backed mortgage scheme for those 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.
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/separated or otherwise 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 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.
In recognition of such instances, an exemption to the First Time Buyer eligibility criteria can be applied under the Fresh Start Principle to assist these people to purchase a home when they have left the family home. I have no plans to further expand this criteria under the Local Authority Home Loan at the present time.
