Dáil Éireann Debate, Thursday - 30 November 2023
395. Deputy Cathal Crowe asked the Minister for Housing, Local Government and Heritage if he will consider amending the qualifying rules for the local authority home loan scheme so that individuals and families (details supplied) who have been forced to sell their homes due to inability to pay a large mortgage or downsizing due to changing family needs can also avail of the scheme; and if he will make a statement on the matter. [52953/23]
View answerThe Local Authority Home Loan is a Government-backed mortgage 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) who previously purchased or built a dwelling, together with a spouse, a civil partner or a person with whom he or she was in an intimate and committed relationship are eligible under the Fresh Start principle where this relationship has ended, and they have divested themselves of their interest in the previous property.
- Applicant(s) that previously purchased or built a residential property, but has been divested of this through insolvency or bankruptcy proceedings, are eligible to apply. However a separate assessment of creditworthiness will be conducted by the underwriters. This applies when the applicant has exited the insolvency/bankruptcy proceedings.
The Local Authority Home Loan scheme is kept under constant review. However, there are no plans at present to expand the Fresh Start definition, as set out in the Affordable Housing Act 2021.
