Dáil Éireann Debate, Tuesday - 10 October 2023
261. Deputy Claire Kerrane asked the Minister for Housing, Local Government and Heritage if he will allow work in the public service in England to be eligible in order to meet the requirement for an applicant for the local authority home loan to be in continuous employment for a minimum of two years as the primary earner given this work is in the public service and can be easily proven; and if he will make a statement on the matter. [43554/23]
Amharc ar fhreagraThe Local Authority Home Loan, which is available since 4 January 2022 is a Government-backed mortgage for first-time buyers and fresh start applicants, 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.
As part of the eligibility criteria, applicant(s) of the Local Authority Home Loan must have at least two years’ continuous employment in Ireland or Northern Ireland and cannot have a break from employment for more than 4 weeks in order to be eligible. The continuous employment requirement applies to all applicants, regardless of nationality. Applicants for the Local Authority Home Loan are required to demonstrate a track record of employment that would enable them to repay any monies borrowed. Given that the mortgage would be a long-term financial commitment in Ireland, applicants are required to demonstrate this employment and earnings record in Ireland.
Only income originating in the Republic of Ireland or Northern Ireland by applicants with rights of residency and rights to seek employment in the Republic of Ireland will be reckonable in calculating borrowing and repayment capacities.
While I note the matter raised may pose difficulties in certain situations, it is important that all Local Authority Home Loan applicants demonstrate an adequate employment record. I will keep this matter under review.
The final decision on Local Authority Home Loan applications is a matter for the relevant local authority. Decisions on all housing loan applications must be made in accordance with the Regulations establishing the scheme and the credit policy that underpins the scheme, in order to ensure prudence and consistency in approaches in the best interests of both borrowers and lending local authority.
