Fingal County Council has opened applications for the new first-time buyers’ loan scheme announced by Minister for Housing Eoghan Murphy last week.
Under the scheme, the Government will finance local authorities to provide mortgages to people who have been turned down by banks.
The low-interest rate mortgages will be available to purchasers of properties worth up to €320,000 in the greater Dublin area, Cork and Galway, while the ceiling in the rest of the country will be €250,000.
The scheme will be reserved for borrowers with an annual gross income of no more than €50,000, or €75,000 for couples. Central Bank rules will apply so borrowers will be able to take a mortgage for 90 per cent of the property’s value. Borrowers will be able to choose a fixed rate of 2-2.25 per cent over 25-30 years, terms unavailable from any bank.
Paul Reid, chief executive of Fingal County Council said the scheme “plays a part in addressing one element of the housing crisis and will benefit buyers who don’t qualify for social housing but who also do not earn enough to access the housing market.”
Margaret Geraghty, Fingal County Council’s Director for Housing said the scheme will be “significant” for middle-income earners “who otherwise are finding it extremely difficult to buy a house”.
“It offers residents sustainable and realistic interest rates on their mortgage,” Ms Geraghty said. “These remain fixed at 2 per cent over the entire course of the repayments. This not only makes it easier for first time buyers to access the housing market but also helps them to manage their mortgage payments.”
Fingal County Council said it has administered 1,500 housing loans in the past.
