Paul Murphy (Dublin South West, RISE)
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301. To ask the Minister for Housing, Planning, and Local Government if he will instruct local authorities to extend the fresh start principle for home loans with local authorities, to ensure that it is also offered to those whose mortgages were bought by vulture funds and are now trapped on high interest rates (details supplied); and if he will make a statement on the matter. [61905/22]

Darragh 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. I currently have no plans to amend the Fresh Start Principle.

Further details can be found on localauthorityhomeloan.ie/