A new local authority loan scheme that is backed by Government is “a last resort” for people who want to buy a new home, according to Laois County Council's Housing Officer.
A Rebuilding Ireland Home Loan is a new Government backed mortgage for first time buyers, through Laois and other local authorities. It can be used to purchase a new or second-hand property or for self-build.
A Rebuilding Ireland Home Loan provides up to 90% of the market value of the property. The maximum loan amount is determined by where the property is located.
The maximum market values of the property that can be purchased or self-built in Laois is €250,000.
While describing the low interest mortgage scheme for first time buyers as “very attractive”, Michael Rainey said it is only for people who have received two refusals from two banks.
“It is an attractive loan scheme, the maximum loan is €225,000. The 2 percent fixed rate for 2.5 years is very attractive.
“We are the lender of last resort. We will not be giving loans to all clientele,” he said.
Laois County Council is expecting to require more staff in its housing section to cope with applications.
“We expect considerable interest in this, and we will assign staff resources as needed, if more applications come in,” Mr Rainey said.
Delivering the council's latest housing report Mr Rainey said he does not want people phoning county hall about it.
“I would encourage people to use the number given (on the rebuilding Ireland website), not the council’s. They can use the calculator on the website,” he said.
But Cllr Willie Aird said he will still tell people to ring county hall although he wants more staff hired.
“Anybody who comes to me, I will direct them to the local authority. Existing staff can’t take on any more burdens, they are really overworked,” he said.
Cllr James Kelly noted that people still need to raise 10 percent of the loan.
“It will be of great benefit to a certain section. It’s not a huge fund, people will have to get onto it very quickly,” he said.