The Government is to provide mortgages for first-time buyers with lower interest rates than the main commercial banks.
Families and individuals who earn too much to qualify for social housing but also struggle to obtain traditional mortgages will qualify for the scheme being announced today
The Government-backed mortgages, which can be used to buy both new and second-hand proprieties or to build a home, are among a number of measures in an affordable homes package.
From the beginning of next month, those looking to get on the property ladder will be able to apply for the mortgages which have the option of a fixed rate of 2% to 2.25% interest for 25 to 30 years. Commercial banks are currently charging upwards of 3%.
- The Rebuilding Ireland Home Loan;
- Affordable Purchase Scheme;
- Affordable Rental Scheme.
The announcements come as Housing Minister Eoghan Murphy holds a second housing summit with the 21 local authorities today to ensure they meet the social housing construction target of 3,800 homes this year.
The minister is to publish the building targets for each local authority after today’s summit.
Mr Murphy has secured €200m for the initial phase of the Rebuilding Ireland Home Loan, but it is intended to raise additional funds when this is exhausted.
To apply for the new mortgages, which will be available through local authorities, a single person’s annual gross income cannot exceed €50,000, while a couple cannot earn more than €75,000.