Local authority home loan change a 'lifeline' for first time buyers: Councillor Kelly
The mortgage loan has been expanded to support both the purchase and renovation of vacant or derelict properties as well as new and second-hand homes
Councillor Donal 'Mandy' Kelly says that an expanstion of the Local Authority Home Loan will represent a 'lifeline' for some people.
The scheme to support first time buyers has been renamed the Local Authority Purchase and Renovation Loan.
The mortgage loan has been expanded to support both the purchase and renovation of vacant or derelict properties as well as new and second-hand homes.
Now, first time buyers and fresh start applicants can receive a loan to fund both purchase and renovation works.
“I have been pushing hard for something like this since the grant opened,” Councillor Kelly told Donegal Live.
“Many people were approved for a grant, but were unable to get money from the credit union or bank.
“I am delighted to see the changes to the scheme announced. I want to thank my government colleagues for these changes and improvements to the scheme.”
Previously the Local Authority Home Loan was only available for homes which were habitable and only available for the purchase of the property and not the renovation.
A grant of up to €50,000 is available. If the refurbishment costs exceed the standard grant of up to €50,000, a top-up grant amount of up to €20,000 is available for derelict properties.
The loan is available for first time buyers and fresh start applicants. To qualify single applicants must earn no more than €70,000 gross and joint applicants no more than €85,000 gross. The loan is available as a fixed rate mortgage and a variable rate bridging loan.
Councillor Kelly said: “This will give people another lifeline and is a massive step in the right direction as it will take in more derelict homes and buildings too.”