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Applying for a Local Authority Loan

Applying for a Local Authority Loan

Local Authority Home Loan

The new Local Authority Home Loans Scheme (LAHL) will replace the existing Rebuilding Ireland Home Loan (RIHL) for the purchase of new or second-hand residential properties and for self-builds on 4th January 2022. It also includes the purchase of homes through schemes such as the Tenant Purchase and Affordable Housing Schemes. Maximum market values of the property that can be purchased or self-built in the South Dublin County Council Administrative area is €320,000.

Some of the main changes compared to the RIHL include:

  • The income ceiling for a single applicant has risen from €50,000 to €65,000 in South Dublin County where the scheme’s house price limit is €320,000.
  • A 'Fresh Start' principle also applies to the LAHL. This means that people who are divorced, legally separated/separated or the relationship has ended and have no financial interest in the family home are eligible to apply under this scheme. People who have undergone personal insolvency/bankruptcy proceedings will also be eligible to apply for the LAHL.

 

A borrower information booklet has also been developed for the LAHL. The booklet and application form will be available from www.localauthorityhomeloan.ie.

Applicants to South Dublin County Council should note that the Local AuthorityHome Loan is provided subject to separate specific terms and conditions of business available from South Dublin County Council.(Please note the South Dublin County Council Checklist is to be strictly adhered to)

(See related documents below for application form, South Dublin County Council - checklist and frequently asked questions)

Please note:

The property you wish to purchase must be located in the South Dublin County Council administrative area. 

Due to Covid-19 the timeframes for the application process is impacted and currently it is taking longer than normal.

Applications should be submitted by post, preferably registered post as the applicant will have a record of it.

Appointments are not necessary.

MORTGAGE PROTECTION INSURANCE

It is a mandatory requirement of South Dublin County Council that all applicants qualify for and have the approved Local Authority Mortgage Repayment Protection Plan (MRPP) Group Insurance Scheme in place before a loan can be issued. The current insurer is Utmost PanEurope.

Entry Criteria for the MRPP Group Scheme

At the point of joining the MRPP Scheme the borrower(s) must meet with the following;

  1. Has attained the age of 18 years but not 55 years (60 if already covered under the policy and subsequently insuring rental equity/shared ownership element)
  2. Was at work, and
  3. Has not been prescribed, taken or been advised to take and medication or treatment for pre-existing medical conditions in the last 12 months for a period of more than 3weeks (colds, influenza, backache, and oral contraceptive pill may be ignored) and 
  4. Was not under the care of a consultant or specialist, or due to attend a hospital follow up or awaiting any medical referral, medical investigation, medical test results, surgical procedure or consultant, specialist or hospital appointment and
  5. Not been declined for Life, Disability or Private Medical Insurance and
  6. Continues to reside in the property covered by the agreement. 

(See related documents below for MRPP Master Policy Document)

Warning: 

If you do not keep up your repayments you may lose your home. The cost of your monthly repayments may increase. 

If you do not meet the repayments on your loan, your account will go into arrears. This may affect your credit rating, which may limit your ability to access credit in the future.

You may have to pay charges if you pay off a fixed-rate loan early.

Mortgage Allowance Scheme

The Mortgage Allowance Scheme assists tenants and tenant purchasers of local authority dwellings who wish to return their dwelling to the authority and purchase or build a private dwelling for their own occupation. The amount of the allowance is €11,450 payable to the lending agency over 5 years.

Applications should be made to the Local Authority for the area in which the private dwelling is being purchased or built.

(See related documents below for Mortgage Allowance Scheme application form)

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