Council mortgages up to €247,500 will be offered in Longford

People wishing to buy houses in Longford will be permitted to borrow up to €247,500 from the County Council from the beginning of March.

Under changes to the Government's local authority home loan scheme, announced by Minister for Housing, Local Government and Heritage, Darragh O’Brien TD, lending ceilings and income eligibility limits have been increased.

According to Minister O'Brien, the amendments will result in more people in Longford being eligible to apply for the State-backed mortgage.

In Longford the house price limit under the scheme is going up by €25,000 from €250,000 to €275,000.

In addition, the income limits are going up. Income limits for joint applicants will increase to €85,000 and the income limit for a single applicant in Longford will increase to €70,000.

The scheme was launched in January 2022 as part of Housing for All. 

It supports creditworthy borrowers who are unable to get finance from commercial banks to buy a home. It can be used for new, second hand or self-build homes. 

Minister O’Brien said, “These improvements to the Local Authority Home Loan will take effect from March 1. Supporting home ownership is a key objective for this Government and the increase in eligible house prices coupled with the increase in income limits will mean more people in Longford can access the loan. 

"Importantly, building on changes made this time last year we are again increasing the income limit for single applicants so that those earning up to €70,000 who wish to purchase a home can avail of the State backed loan. The ‘Fresh Start Principle’ also applies whereby people who are divorced or separated and have no interest in the family home, or who have undergone insolvency proceedings, can also avail of the loan. 

"The changes reflect the reality of today’s housing market and we will continue to keep the Local Authority Home Loan under review to ensure it remains a genuine and relevant support for people in Longford who want to own their own home.”

Since February 2018, over 3,300 people have got on the property ladder through the Local Authority Home Loan and its predecessor the Rebuilding Ireland Home Loan.

The local authority home loans are offered at two fixed interest rates, 3.35% fixed for up to 25 years (APR 3.40%) and 3.45% fixed for up to 30 years (APR 3.51%).