Léim ar aghaidh chuig an bpríomhábhar
Gnáthamharc

Departmental Policies

Dáil Éireann Debate, Thursday - 14 July 2022

Thursday, 14 July 2022

Ceisteanna (362)

Éamon Ó Cuív

Ceist:

362. Deputy Éamon Ó Cuív asked the Minister for Housing, Local Government and Heritage if persons whose houses were repossessed and sold are eligible to apply for local authority loans to purchase a new house; if not, if he intends to change the rules to afford these persons a second chance; and if he will make a statement on the matter. [39024/22]

Amharc ar fhreagra

Freagraí scríofa

The 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.

The Fresh Start principle extends the supports available under the Local Authority Home Loan scheme to applicants who are divorced, legally separated, or where the relationship has ended and where they retain no beneficial interest in a home.

The Fresh Start principle also applies to those who have previously purchased a residential property but have been divested of this through personal insolvency or bankruptcy arrangements, proceedings or other legal processes. The divestment of the home must have been consequent upon insolvency.

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 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 localauthorityhomeloan.ie/ 

Barr
Roinn