Written answers

Tuesday, 26 April 2022

Department of Housing, Planning, and Local Government

Departmental Schemes

Photo of Richard BrutonRichard Bruton (Dublin Bay North, Fine Gael)
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645. To ask the Minister for Housing, Planning, and Local Government the steps he will take to ensure that persons who surrendered their home to the financial crisis but who did not enter bankruptcy or similar arrangements will be able to access the local authority loan, the Fresh Start and other appropriate schemes on the same basis as first-time buyers; and if he will make a statement on the matter. [20091/22]

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
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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/.

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