Local Authority Home Loan: the mortgage you get after the banks say no

Most mortgage guides assume a bank will lend to you. This one is for the people they turned down. The Local Authority Home Loan is a government-backed mortgage from your council, and its strangest feature is the one that puts people off: being refused by two lenders is a condition of getting it, not a reason you cannot apply.

The two refusals are the point

The scheme requires you to provide proof of insufficient mortgage offers of finance from two regulated financial providers. People read that as a barrier. It is the opposite: the loan exists precisely because the banks would not lend you enough, so a refusal letter is a document you need rather than a door closing.

Keep both refusals in writing. "Insufficient" counts — you do not need a flat no, only evidence that what they offered would not buy the home.

Who qualifies

• A first-time buyer — or a Fresh Start applicant (divorced, separated, or through insolvency or bankruptcy), or someone who inherited a property.
• Aged between 18 and 70.
• Two years continuous employment as the primary earner, or one year as the secondary earner on a joint application. Self-employed applicants submit two years of certified accounts.
• Gross income of no more than €80,000 as a single applicant, or €85,000 jointly.
• You must live in the property as your normal home, and it must be in the Republic of Ireland and under the maximum market value for that county.

What it costs

Two fixed products: 4.00% fixed for up to 25 years (APR 4.07%) and 4.05% for loans over 25 and up to 30 years (APR 4.13%). The rate is set on the day you draw down, and fixing means a breakage fee if you repay early.

One cost is easy to miss when comparing against a bank: Mortgage Protection Insurance is compulsory, you must join the local authority collective scheme, and it is paid monthly on top of the repayment.

If you have been served a notice to quit

This is the part that is easy to miss. The scheme runs an expedited application process for tenants who have received a Notice of Termination and want to buy either the property they are renting or another one as their home.

If you are a renter facing eviction and have been saving, this is the fastest route the State has. Contact the local authority for the area you want to buy in and say at the outset that you hold a Notice of Termination.

How to apply

You apply to the local authority for the area where the property is — not where you live now. The loan covers a new or second-hand home or a self-build, up to 90% of market value, with the maximum amount set by county.

Common questions

This guide is general information, not financial advice. Rules, rates and eligibility change and differ by country — always confirm the current details with the relevant official body before you act.

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