Question: I want to buy a house, but can’t get a mortgage with the bank. What other options do I have for finance?

Answer: You may be able to get a local authority home loan to buy a home if you’ve been unable to get the funds you need from a bank.

The Local Authority Home Loan is a Government-backed mortgage with reduced interest rates. The interest rates are fixed for the full term of the loan, so you have the same repayments for the lifetime of the loan. You can use the loan for new or second-hand properties, or to build a home.

How do I qualify for the loan?

To get this loan, your income must be below a certain level and you must have been in continuous employment for a set amount of time. You must also meet some other criteria.

You must:

Be a first-time buyer or ‘fresh start’ applicant
Be aged between 18 and 70
Have proof that you haven’t been able to get the mortgage funding you need from two banks or building societies
Have a deposit
Have a satisfactory credit rating
Live in the property once you have bought or built it

What is the maximum market value of a property for this loan?

The home you are buying or building must be below a certain market value (price). The maximum market value of the property depends on where the property is located.

€320,000 in Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow
€250,000 in the rest of the country

You can borrow up to 90% of the market value of the property and you may be able to get the Help to Buy incentive to help with your deposit.

What are the interest rates?

The interest rates are fixed for the full term of the mortgage and are currently:

2.495% for up to 25 years
2.745% for up to 30 years

You apply to your local authority for the Local Authority Home Loan.

Read more about the Local Authority Home Loans on citizensinformation.ie or phone Kerry Citizens Information Service 0818 07 7860 (Monday to Friday, 10am to 4pm), the national phone service on 0818 07 4000 (Monday to Friday, 9am to 8pm), or log on to www.citizensinformation.ie.