What is the Local Authority Purchase and Renovation Loan?
The Local Authority Purchase and Renovation Loan is a new government-backed mortgage and loan to buy and renovate a derelict or uninhabitable home.
To qualify, you must first qualify for the Vacant Property Refurbishment Grant and be unable to get funding from commercial lenders.
Who is it for?
The Local Authority Purchase and Renovation Loan is available to first-time buyers and ‘fresh start’ applicants. Fresh start applicants include:
People who are divorced, separated, or whose relationship has ended and who have no financial interest in the family home
People who have gone through personal insolvency or bankruptcy
How does it work?
The loan has 2 parts:
A fixed rate mortgage loan, and
A variable rate bridging loan
The interest-only bridging loan is for the amount of the Vacant Property Refurbishment Grant that you’ve been approved for. You pay the bridging loan back as soon as you get the grant.
How much can I borrow?
The amount you can borrow depends on different factors such as your circumstances, the area the property is located, and the amount of work needed on the property.
There is a loan calculator available to help you estimate how much you could borrow and what your repayments would be.
What is the interest rate?
The current interest rate on the mortgage portion is:
4.00% for loans up to 25 years (APR 4.07%)
4.05% for loans over 25 years and up to 30 years (APR 4.13%)
The current interest rate for the bridging loan is 3.5% interest, variable rate for 2 years.
How to apply
You should study the qualifying criteria and conditions before you complete the application form. Then submit your application and supporting documents to the housing section of the local authority. You must apply to the local authority where the property is located.
Read more about the Local Authority Purchase and Renovation Loan at https://bit.ly/LARP_Loan, or call us on 0818 07 4000 (Monday to Friday, 9am to 8pm).
Know Your Rights has been compiled by South Connacht Citizens Information Service CLG, which provides a free and confidential service to the public. Tel: 0818 07 6330 Address: Boyle CIC, Elphin Street, Boyle, Co. Roscommon
