Housing Loans

Housing Loans

Louth County Council provides different types of House Purchase loans. These loans include:-

  • Loans to buy a new house.
  • Loans to buy a caravan if you are a member of the Travelling Community.

The same application form is used for all the House Purchase Loans. The form sets out who is eligible to get a loan.

House Purchase Loan Application Form

Information on House Purchase Loan Applications

Are you eligible for a council loan?

If you can answer YES to the following questions you may be eligible for a House Purchase Loan.

 YesNo

Are you a first time buyer?

There is a legal description of a first time buyer in the Housing Regulations.

Housing (Local Authority Loans) Regulations 2009 (S.I. 145 of 2009)

  
Are you aged between 18 and 70 years of age?  
Are you single and earning €50,000 or less per year?  

You do not own a house or property?

If you do own a house or property you won't qualify for a loan.

  
In the case of a joint application, is the total income of both applicants €75,000 or less per year?  

You or the other applicant do not own a house or property?

In the case of a joint application, neither applicant may currently own a house or property.

  

Have you been in continuous employment for the last two years (this can be self employment)?

In certain circumstances exceptions to this policy will be considered.

  
In the case of a joint application, has the second applicant been in continuous employment for the past year?  
Do you intend to the property you want the loan for to be your normal place of residence?  
Is the property situated within County Louth?  
Is the property in good condition?  
Does the property have good marketable title?  
Does the property have a gross internal floor area of 175 square metres (1,850 square feet) or less?  

Will the property cost less than €200,000?

€200,000 is the maximum loan amount available.

Note: The property cannot exceed a value as determined by the local authority. This also applies to a property purchased under Shared Ownership.

  

The maximum loan-to-value ratio is 90%. Do you have enough savings to make up the 10% difference?

For example, if the cost of the property is €100,000, the council will lend €90,000 and you need to have the other €10,000 saved up. Provision needs to be made for legal fees and stamp duty.

  

Do you have the capacity to repay the loan?

The maximum loan term is 30 years.

Repayments must be made at monthly intervals.

Loans are given based on your capacity to repay. The council will look for information on your income and expenditure. They will use this information to decide if you could manage to repay the loan.

  
Do you have a credible savings record?  
Do you have good credit standing with a satisfactory credit record?  
Have you been refused a loan by 2 different banks or building societies?  

The application form requires details of:

  • marital status, dependents
  • current & previous employments
  • other borrowings, savings
  • details of property proposed for purchase and;
  • any other information requirements that the council may need from time to time

Can you provide these details?

  

Loans are also assessed by the Council Credit Committee before a loan is approved.

 

Mortgage Arrears Resolution Process (MARP)

At Louth County Council we know that some of our customers are experiencing financial difficulties.

You may be worried about your ability to keep up with your mortgage repayments while living on a reduced income. If you are having difficulty meeting your mortgage repayments or anticipate having difficulty, we would like to work with you to find a way to help you manage your situation.

Louth County Council has introduced a five step process called the Mortgage Arrears Resolution Process or MARP to help support mortgage customers who are in arrears or are at risk of going into arrears. This also applies to customers where an alternative repayment arrangement already in place, breaks down or expires. The protection of the Code applies to your residential property, which you occupy as your family home.

Arrears Support Unit:

Louth County Council have dedicated Mortgage Arrears Support Staff who are available to discuss any concerns you may have with meeting your mortgage repayments. Feel free to contact Alison Condra 041 9876104 to arrange an appointment to discuss your situation.

In order to assess your situation we will ask you to submit an Application Form (size 55.8 KB) and a Standard Financial Statement (SFA) (size 66 KB) to the Arrears Support Unit. In the Standard Financial Statement (SFA) you will need to set out your monthly income and bills. Your local MABS office can assist you with this. You will also be asked to provide back-up documents as proof of income/ expenditure.

Next Steps:

Once you have submitted your application the Council will examine your specific arrears case. A letter will be issued to you detailing their decision and if your application is deemed to be successful, details of any new revised mortgage terms. If you are happy with this you can sign and return the form or alternatively contact the office to arrange a meeting to discuss. Warning, your home is at risk if you do not keep up repayments on your mortgage.

Appeal:

If you are not happy with the decision of the Arrears Support Unit you have the right to appeal to the Louth County Council Credit Committee.

A letter appealing the decision of the Arrears Support Unit must be sent within twenty working days to: Ms Bernadette Woods, Head of Finance, Louth County Council, Millennium Centre, Dundalk Co. Louth. The Appeal will be assessed by the Credit Committee within twenty eight working days and you will be informed of their decision in writing.

Repossessions:

Repossession of a house is the least desirable option for the home owner and Louth County Council. However if the borrower fails to co-operate in the process of re-negotiating their loan this option may be exercised by the Council. In certain circumstances where the loan is unsuitable, voluntary surrender or repossession are the only options.

Please be advised that all costs associated with the process and any shortfall, should the proceeds of the sale not cover the amount of the loan outstanding, will fall on the borrower.

Download our booklet: Sorting it Out, A guide to resolving your mortgage arrears.