Dáil Éireann Debate, Thursday - 30 May 2024
194. Deputy Eoin Ó Broin asked the Minister for Housing, Local Government and Heritage if the fresh start principal can apply to a person who sold the family home following legal separation or divorce, either by voluntary agreement with their former partner or on foot of a court order as part of the separation or divorce settlement. [24513/24]
Amharc ar fhreagraThe Local Authority Home Loan is a Government-backed mortgage for those who cannot get sufficient funding from commercial banks to purchase or build a home. It has been available nationwide from local authorities since 4 January 2022 for first-time buyers and fresh start applicants. The loan can be used both for new and second-hand properties, or to self-build.
A ‘Fresh Start’ principle applies for applications to the Local Authority Home Loan. In recognition of instances where an individual has undergone a separation/legal separation/divorce or otherwise and has relinquished their rights to the family home property, an exemption to the First Time Buyer eligibility criteria can be applied under the Fresh Start Principle.
Persons who previously purchased or built a property, together with a spouse, a civil partner or a person with whom they were in an intimate and committed relationship, are eligible under the Fresh Start principle if the following conditions are met;
• the marriage, civil partnership or relationship concerned has ended, and
• the person is now applying to purchase a property on their own or with a different person, and
• the person has divested themselves of their interest in any previous properties purchased or built and
• their most recently owned dwelling must have been lost as a result of the fresh start event.
The final decision regarding the Local Authority Home Loan application is made by the relevant Local Authority Credit Committee on a case by case basis. Decisions on all housing loan applications must be made in accordance with the Regulations establishing the scheme and the credit policy that underpins the scheme, in order to ensure prudence and consistency in approaches in the best interests of both borrowers and lending local authority.
Further details can be found on localauthorityhomeloan.ie/.
