Annuity Loans - Information and Application Form
Local authority loans for home purchase and improvements are available subject to certain criteria set nationally by the Department.
Section 39 of the Housing Act, 1966, enabled Housing Authorities, subject to subsequent regulations made for the purpose of that Section, to lend money to a person or persons for the purpose of acquiring or constructing a house. Section 40 of the Housing Act, 1966, provides for the reconstruction or repair of houses up to the cost of €38,000. Various amendments have been made to this Scheme over the years to reflect the changing needs of society. These are set out in Section 11 of the Housing (Miscellaneous Provisions) Act, 1992, Housing Regulations 1980, Housing Regulations 1980 (Amendment) Regulations 1996 and the Housing Regulations 1980 (Amendment) Regulations 1998 - S.I. No. 152 of 1998. The following circulars from the Dept. of the Environment & Local Government are of particular relevance to the administration of this scheme: Circular H 4/91, Circular H 8/95, Circular H 6/96, Circular H 7/96, Circular H 10/97, Circular H 4/98 and Circular HPS3/2009. The maximum loan currently available from the Housing Authority for the purpose of purchasing or constructing a house, subject to certain conditions, is €220.000 and the maximum loan term is 30 years. Details in relation to loan services provided by Leitrim County Council are available from the Finance Section on 071 9620005, Ext354.
Do I Qualify for a local authority loan?
If you can show the local authority that you are unable to get a loan from a bank or a building society, and you are:
(i) In need of housing, or
(ii) A person whose application for local authority housing has been approved by the local authority, or
(iii) A local authority tenant or tenant purchaser who wishes to buy their local authority house, or
(iv) A local authority tenant or tenant purchaser who wishes to buy a private house and to return your present house to the local authority, or
(v) A tenant for more than one year of a house provided by a voluntary body under the Rental Subsidy Scheme who wishes to buy a private house and return your present house to the voluntary body.
(vi) A first time buyer
(vii) Aged between 18 and 70 years
(viii) Earning under €50,000 as a single applicant and under €75,00 as joint applicants
(ix) In the case of the primary earner on the application, in continuous employment for at least two years and the second applicant must have at least one year.
The Local Authority will perform a credit check for each applicant and a check of any judgement filed against the applicant. Credit checks will be carried out using information provided by the Irish Credit Bureau (ICB). The credit checking system is based on the sharing of information by all those providing lending and using the system, which includes the majority of lending institutions in the state. Applicants must consent to the carrying out of credit checks and reporting.
How much will the repayments be:
The interest rate on local authority house purchase loans is variable (i.e. moves up or down) in line with movements in building society variable mortgage rates. The current (July 2016) interest rate is 2.30%. At this interest rate your repayment will be €52.02 per month over 20 years for each €10,000 borrowed. In addition, a charge (0.5550% currently) is made to meet the cost of mortgage protection insurance to protect the interests of the surviving family by paying off the loan in the event of the death of the borrower of the borrower’s spouse.
Mortgage Protection Insurance ceases on the applicant reaching 70 years. All loans must be redeemed/paid in full by the applicant on reaching age 70 years.
Repayments on the mortgage advanced should not exceed 35% of after tax disposable income.
How do I apply?
Complete the application form which is available from the link below
Local Authority House Purchase Loan Application Form
or contact Leitrim County Council for an Application Form - 071 9620005, Ext 354