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Midlands Auctioneer Skeptical Of New Scheme To Help People On Low Incomes Access State-Backed Mortgage

The Local Authority Home-Loan Scheme is being launched today.

A new Local Authority Home-Loan Scheme will not be effective until supply to the market increases and house prices come down.

That's the view of Offaly auctioneer and councillor John Leahy, who says it's almost impossible to find a property for the money people availing of the initiative are restricted to.

The newly expanded scheme, aimed at making it easier for single people to access State-backed mortgages, is being launched today.

It's open to all first-time buyers and people on low or modest incomes, who can not get adequate funding from commercial lenders to purchase new or second-hand properties.

Income ceilings however will apply to be eligible for the scheme. 

Single applicants can not have income in exceeding €65,000 if seeking to purchase a home in the €320,000 house price bracket; the income ceiling is €50,000 otherwise. 

The income threshold for joint applicants is €75,000 nationwide.

Houses purchased under the scheme can not have a value in excess of €320,000 in counties Dublin, Cork, Galway, Meath, Kildare, Louth and Kildare.

The house cost threshold elsewhere around the country is €250,000.

However, Councillor John Leahy believes the scheme of little use due to the competitiveness of the market:

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