As part of our ‘Incentives and Schemes for Homeowners’ series we are going to explain more about the Mortgage Allowance Scheme that some people are eligible for. Like a lot of these grants or schemes, you should check with your local council to check for your eligibility. The Government have some options for those looking to buy a home or hoping to do some renovations. With this particular scheme it can offer low income families an opportunity to get their foot on the property ladder and have a chance to own their own home. In this piece, we will give some advice on the scheme and if you may be eligible for such a scheme.
The Mortgage Allowance Scheme is designed for social housing tenants and tenant purchasers who are taking out a mortgage to buy or build a private house. The idea is that such a scheme makes the crossover from social housing to a mortgage a much easier process. It helps to free up social housing by helping those living in properties to buy their own property thus giving their current home back to the market (local council). Those who are hoping to buy their own home have the help of an allowance of up to €11,450 that is paid directly to the lending agency over a 5 year period. This means that your repayments are reduced accordingly for the first five years of a mortgage repayment offering some respite from expensive repayments for a few years. It doesn’t matter if the mortgage is provided from a commercial lending agency or your local authority. The property must be fit for the prospective owners’ needs and also it must meet some minimum standards that will need to be accepted by the local authority.
The amount paid starts in the first year at a repayment of €3,560 and reducing each year till the final five year payment of €1,270. The second year payment is set at €2,800 with the third being €2,040 and the fourth set at €1,780. Critically, the scheme applies to those living in housing associations for more than one year under the Rental Subsidy Scheme. Those who wish to rescind their tenancy have the option to do so with the scheme by purchasing or building their own home.
To qualify for the scheme prospective homeowners must be borrowing a minimum of €38,092.14 on their mortgage and they must ensure that the amount received through the scheme in any year does not exceed the year’s mortgage repayments. It should be noted that those who are purchasing their home under the Shared Ownership Scheme are not eligible however; that scheme has since being stopped. Applications can be made to your local authority but before you get started you should check out this website for further details or alternatively, call your local authority office.
For your FREE, no obligation, valuation in the South Wicklow and North Wexford area, call into one of our offices (located in Carnew and Gorey) and chat to any of our expert team or you can contact us online at www.KinsellaEstates.ie. We are happy to facilitate overseas buyers and sellers via Skype or similar, outside of regular office hours. Alternatively, email me directly on firstname.lastname@example.org or telephone: +353 53 94 21718
Market Updates on Monday, July 15, 2019 in News