If you cannot get a mortgage from a building society bank etc. to purchase or build a house you may be eligible for a loan from your local authority.
Do I qualify?
If you can show the local authority that you are unable to get a loan from
a bank or a building society, and you are:
How does the income test apply?
Single income household
Multiply your gross income (before tax) in the last income tax year by 2.5.
If the result is £62,500 (€79,359) or less you are eligible.
Two income household
Multiply the gross income (before tax) of the principal (greater) earner in
the last income tax year by 2.5 and add the gross income of the subsidiary
(lesser) earner in the last tax year. If the result is £62,500 (€79,359)
or less, you are eligible.
Examples of how the income test would apply in different circumstances
|
Single Income Household |
Single Income Household |
Two Income Household |
Two Income Household |
|
|
Principal Income Household |
€31,743 |
€33,013 |
€25,395 |
€24,125 |
|
Subsidiary Income |
--- |
--- |
€15,875 |
€21,585 |
|
Formula |
€31,743 |
€33,013 |
€25,395 |
€24,125 |
|
x 2.5 |
x 2.5 |
x 2.5 |
x 2.5 |
|
|
= €79,359 |
= €82,533 |
+ €15,875 |
+ €21,585 |
|
|
€79,375 |
= €81,898 |
|||
|
Eligible? |
Yes |
No |
Yes |
No |
Approved applicants for local authority housing and tenants and tenant purchasers
of local authority dwellings nd tenants for more than one year of Rental Subsidy
Scheme housing surrendering their dwellings are exempt from the above income
test.
Can I choose any house I like?
Yes. When you have been approved in principle for a local authority house
purchase loan, you may select a new or existing house or build a house. The
house must be suitable to your needs, meet certain minimum standards and be
acceptable to the local authority.
What size loan can I get?
The loan can be up to 95% of the price of the house subject to a maximum loan
of £100,000 (€127,000) and also subject to repayments not amounting
to more than 35% of the household net income (i.e. income after tax and PRSI).
Home Improvement Loans
The maximum amount available is €38,000 and as with all loan approvals
is based on an applicants ability to repay and record of rent payment if a
tenant. If the loan to granted exceeds €16,000 a Deed of Charge must
be registered against the property to protect the Local Authority’s
interest should the property be sold or disposed of otherwise. If the loan
is below this amount a Deed of Covenant is required.