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Local Authority Home Loan Overview

This is a Government backed mortgage provided to first time buyers and Fresh Start applicants through local authorities. The Local Authority Home Loan scheme is for the purchase of new or second-hand residential properties and for self-builds. It also includes the purchase of homes through State schemes such as the Tenant Purchase Scheme and Affordable Housing Schemes, with the exception of the First Home Scheme.

A "Fresh Start" principle also applies to the Local Authority Home Loans scheme. This means that applicants who are divorced, legally separated/separated or the relationship has ended and have no financial interest in the family home are eligible to apply under this scheme¹.

People who have undergone personal insolvency/bankruptcy proceedings will also be eligible to apply for the Local Authority Home Loans Scheme ².

The credit policy complies with appropriate legislation including:

¹ For the purposes of this Scheme, a marriage is deemed to have ended when it is the subject of a decree of judicial separation, divorce or decree of dissolution or nullity, or a civil partnership has ended.

² A person who has exited Insolvency/bankruptcy proceedings and had previously purchased a home but has been divested of these through these proceedings may still be eligible to apply for a Local Authority Home Loan.