The Local Authority Home Loan (LAHL) is a national Government-backed mortgage for creditworthy applicants 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.
Local authorities must assure themselves that the borrower has the capacity to repay the mortgage, and furthermore it would not be beneficial to extend a mortgage to an applicant who does not have the capacity to repay the mortgage. 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 the lending local authority. There is no discretion at local authority level to disapply the regulations establishing the loan or the associated credit policy requirements for creditworthiness and there are no plans to introduce such provisions.
Further details can be found on https://localauthorityhomeloan.ie/
