The Local Authority Home Loan is a Scheme that enables purchasers to enter into a mortgage with their local authority if they are unable to obtain a mortgage that is large enough to buy a house. New or second-hand properties can be purchased using the loan, and applicants can also use it for a self-build. It is only open to first time buyers. The maximum that can be borrowed is 90% of the cost involved and the final sum given is determined by the location of the property in question.
How to apply
You make your application through the local authority website. You can find contact details of your local authority here.
You can download a copy of the application form here.
The form includes a number of sections and it is a good idea to get the information and documents together before you sit down to fill out the form. We have set out details of the information you will need below and it can really save time if you are ready to go when you start to work on the form.
| Item needed | Notes | |
| 1 | Fully completed application form | You can download the form here. Make sure that all declarations are completed |
| 2. | Proof of insufficient mortgage offer from two regulated financial providers.
*You will also need to show the loan amount that you have looked for. |
This proof will be one of the following:-
– A letter of insufficient mortgage offer from a bank or building society that shows the amount requested – A letter that states that your application is not covered by the institution’s lending criteria. – The output sheet from a lender calculator that shows that you do not have the capacity to borrow the sum that you need.
The exact wording required for this confirmation is set out at Appendix 3 of the main application form. |
| 3. | Photographic identification | A current valid passport of driver’s licence |
| 4. | Proof of present address | A current utility bill or bank statement which is dated within the past 3 months. |
| 5. | Proof of PPSN/TRN | This number will be shown on your payslip, or you can print a slip showing your PPS number from Revenue’s MyAccount system. |
| 6. | Proof of right to reside | If you have a written agreement to live in the house where you are currently residing, you should include this. |
| 7. | 12 months’ most recent current account bank statements. | Make sure the statements show your salary lodgements. |
| 8. | 12 months’ Credit Union Statements | Make sure these are original statements. |
| 9. | 12 months’ most recent savings account statements. | |
| 10. | 12 months’ most recent loan account statements. | |
| 11. | 6 months’ most recent Credit Card statements | |
| 12. | Original Salary Certificate | This document is attached to the main application form at Appendix 1 and must be completed by your employer. They will be asked to include details of your salary, overtime, location and details of work. |
| 13. | End of year Employment detail summary | This document is issued by the Revenue Commissioners and was formerly known as the P60 form. You can request this form through Revenue’s online MyAccount system. |
| 14.
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Statement of tax liability. | This is also issued by the Revenue Commissioners and was formerly known as the P21. This form can also be requested through MyAccount. |
| 14. | Payslips | If you are paid monthly, you will need 3 payslips. If you are paid fortnightly, you will need 6 payslips.
If you are paid weekly, you will need 12 payslips. |
| If you are renting, you will also need the following:- | ||
| 15. | 12 months’ evidence of rent payments if in rental accommodation | You can show bank statements with rent payments made, or get a letter from your landlord, confirming that rent has been paid for the past 12 months. |
| 16. | If you are renting from the local authority or are a RAS or HAP tenant, you must get a letter from the Rent Assessment Section which confirms that your rent assessment is up to date and the account is clear. | The account must be clear for 6 months. You should contact your local authority and ask to speak with the Rent Assessment Section. |
| 17. | Notice of Termination if one has been served on you. | This applies to tenants who are renting from private landlords. A Notice of Termination is the notification from a landlord that they want you to leave the property |
| If you are self-employed, you will also need the following:- | ||
| 18. | Accountants Report/Audited Accounts | You will need the report to cover a minimum of 2 years’ trading. |
| 20. | Form 11 Return Summary for the relevant tax years | This will need to cover 2 previous tax years. |
| 21. | Current Tax Balancing Statement | |
| 22. | Current Preliminary Revenue Tax Payment Receipt | |
| 23. | A letter from your accountant confirming that all taxes are up to date and in order | This letter must cover personal and business taxes. |
| 24. | 12 months’ most recent personal current account bank statements | |
| 25. | A minimum of 12 months’ most recent business current account statements | These statements must verify your net income. |
| 26. | 12 months’ most recent statements | These statements must verify your savings |
| If you are a Company Director, you will also need the following:- | ||
| 27. | Letter from your accountant regarding taxes | This letter must confirm that all personal and business taxes are up to date and in order. |
| 28. | 2 years of company accounts, in addition to the PAYE requirements | This applies to a director who is being paid via PAYE and has a shareholding equal to or great than 25%. |
| If you are in receipt of unemployment/social welfare benefits, you will also need the following:- | ||
| 29. | Unemployment/Social Welfare Benefits Confirmation.
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This is a document which is attached to the main application form at Appendix 2 and which must be completed by the Department of Social Protection.
Contact the Department here:- 01 704 3000 |
| 30. | A statement of total benefit being received in the preceding tax year. | You can also request this from the Department of Social Welfare. |
You will also need to insert some additional information on to the form, namely the following:-
| Personal details | Name, address, gender, date of birth, PPS number, marital status, visa status, dependents |
| Details of tenure (residence) | Owner or renter. Mortgage amount, rent account number, ownership details |
| Is Fresh Start Principle applicable? | The Fresh Start Principle allows people who are divorced, separated or a relationship has ended and they have no interest in the family home, means they can still apply. This principle also includes people who are insolvent/bankrupt. |
| Employment details | Your profession, employer, salary/wages |
| Self-employment | Type of business, years trading, turnover, profit/loss. |
| Financial position | Loans or mortgages, instalment amount, Savings account. Bankruptcy/insolvency |
| Maintenance | Are you financial responsible for spouse/minor children |
| Declarations | You must authorise your local authority to contact you, to check your details on the Local Property Tax register, and to check your name against the Central Credit Register. |
| Signature | You must sign and date the form. |