Dáil Éireann Debate, Monday - 11 September 2023
931. Deputy Niamh Smyth asked the Minister for Housing, Local Government and Heritage if he has any plans to alter/amend the rule for those who have gone through insolvency to be able to access the Rebuilding Ireland home-loan scheme sooner than what is currently stipulated; and if he will make a statement on the matter. [38685/23]
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. The loan can be used both for new and second-hand properties, or to self-build. The Local Authority Home Loan replaced the Rebuilding Ireland Home Loan on 4 January 2022 and applications for the Rebuilding Ireland Home Loan are no longer accepted.
A 'Fresh Start' principle applies to the Local Authority Home Loans scheme for certain categories of persons who previously owned a home. For example, applicant(s) that previously purchased or built a property but had been divested of this through insolvency or bankruptcy proceedings, may be eligible to apply.
In general the normal eligibility criteria apply to an applicant seeking the Local Authority Home Loan under Fresh Start post-bankruptcy principle, although there are some additional elements to establish the applicant's track record of creditworthiness. The applicant must have exited bankruptcy to be eligible to apply. They must also have a clean credit record for a minimum duration of 2 years prior to application. However, it should be noted that a return to solvency should not be interpreted as a return to creditworthiness, which is a separate assessment conducted by the Housing Agency in its role assessing applications.
I will keep this matter under review.
