First time buyers can now apply for a government-backed mortgage
This could be a game-changer.
Minister for Housing, TD Darragh O’Brien recently announced the launch of the Local Authority Home Loan, which is available to first-time buyers and ‘fresh start’ applicants who wish to buy or build their first home.
A Local Authority Home Loan is a Government-backed, fixed interest mortgage that eligible applicants can avail of through their local authority (Cork City Council or Cork County Council).
Among those who could be eligible for a ‘fresh start’ loan are people who are divorced or separated or cannot live in the family home. People who have lost their property due to bankruptcy or have gone through personal insolvency are also eligible to apply.
The scheme is for the purchase of new or second-hand residential properties and self-builds and the mortgage holder must be the primary occupant (ie. the house cannot be rented out).
“The new regulations will make it easier for single people to avail of a State-backed mortgage for a new, second-hand or self-build home,” said Minister O’Brien.
Mortgage applicants can borrow up to 90% of the property value (a 10% deposit is required), and to apply must be between the ages of 18-70, be earning under €65,000 (gross) per year as a single person in Cork or €75,000 as a couple and be able to meet the monthly repayments.
You can find out more about the eligibility criteria and how to apply on the Gov.ie website or Citizen’s Information here.