Written answers

Tuesday, 14 June 2022

Department of Housing, Planning, and Local Government

Departmental Schemes

Photo of Peadar TóibínPeadar Tóibín (Meath West, Aontú)
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497. To ask the Minister for Housing, Planning, and Local Government if he will review the terms and conditions for Fresh Start applicants under the local authority home loan scheme to include circumstances in which one of the former partners who remains in the home, and takes over full responsibility for the mortgage, can qualify for the scheme to prevent a sale of the family home and homelessness during a national housing crisis; and if he will make a statement on the matter. [29495/22]

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.

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) that previously purchased or built a residential property, but is divorced/separated or otherwise 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;

In recognition of such instances, an exemption to the First Time Buyer eligibility criteria can be applied under the Fresh Start Principle. However, this is for a fresh start applicant who has divested themselves of the family home to enable them to purchase a new home only.  It is not available to applicants who wish to take sole ownership of an existing property following a divorce or separation;

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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