Local Authority Home Loan scheme welcomed
The new Local Authority Home Loan scheme which came into effect last week has been warmly welcomed in Meath, with local councillors predicting it will give many locals an opportunity to get their feet on the property ladder.
The Government backed mortgage scheme is aimed at first time buyers, but unlike in previous schemes it is also open to fresh start applicants - people who are divorced or separated and have no interest in the family home, or who have undergone personal insolvency or bankruptcy arrangement or proceedings.
The scheme is for the purchase of new or second-hand residential properties and for self-builds. It also includes the purchase of homes through state schemes such as the Tenant Purchase Scheme and Affordable Housing Schemes, with the exception of the First Home Scheme.
Cathaoirleach of Meath County Council, Cllr Sean Drew said he is very pleased with the new scheme.
"The expansion of the council mortgage scheme to enable a wider range of single people to purchase their own home is very welcome.
"The fresh start element of the scheme will open up an avenue for those eligible to move on with their lives, with the chance to finance the purchase of a new or replacement home.
"The removal of the house size limit and the increase of the single applicant income limit to €65,000 will enable a wider number of prospective home owners avail of a low interest mortgage under the scheme."
Cllr Drew urged anyone interested to visit the dedicated Local Authority Home Loan webpage for information - it also has an easy to use calculator for each individual circumstances.
Cllr Tommy Reilly said it was a great opportunity for people to get on the housing ladder.
"This should improve things for young people and will give them the chance to buy their own home."
Cllr Nick Killian said the scheme was very welcome and would give hope to single people and young couples who want to buy their own homes.
The new loan is a normal capital and interest-bearing mortgage which is repaid by direct debit on a monthly basis and you can borrow up to 90per cent of the market value of the property.
Maximum market values of the property that can be purchased or self-built are: €320k in the counties of Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow, and €250k in the rest of the country.
To be eligible, you must be a first-time buyer, be aged between 18 and 70 years, be in continuous employment for a minimum of two years, as the primary earner or be in continuous employment for a minimum of one year, as a secondary earner, a single applicant can have an annual gross income of not more than €65,000 (gross) in counties Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow or be earning under €50,000 (gross) in all other counties.
Joint applicants should have an annual gross income of not more than €75,000 (gross) in all counties.
Applicant must have proof of insufficient mortgage offers of finance from two regulated financial providers.