New Council Mortgage Scheme offers low interest rates to modest income earners
Wexford County Council has welcomed the recently announced Rebuilding Ireland Home Loan Scheme, describing the first-time buyers scheme as offering a “realistic and affordable opportunity” of home ownership to hundreds of low and middle-income earners in County Wexford.
The Scheme offers loans of up to 90% of the purchase price/ build cost. Interest rate options ranging between 2% and 2.25% are available, fixed over the entire loan term, with a variable rate of 2.3% also available.
Applicants must be over 18 years of age and have a gross income of not more than €50,000 for a single applicant or €75,000 as joint applicants.
The house can be new or second hand. Applicants can also self-build a property. The purchase price / build cost cannot exceed €250,000 and the floor area cannot exceed 175 sq. metres.
|Max loan 90%||€162,000|
|Monthly loan repayment - fixed for 25 years||€688.64*|
|*excludes mortgage protection|
Council Tom Enright says he expects there will be strong interest in the loan scheme when it goes live on 1st February. “An interest rate of between 2% and 2.25%, fixed for the entire loan period of up to 30 years means that for the first time in a long time, those with a modest income now have a realistic and affordable opportunity of home ownership” said Mr Enright. “In addition, many of those who will benefit from this scheme will vacate scarce rental accommodation in every town and village in Wexford, freeing up dozens of properties for those struggling to find rental accommodation for themselves and their families”
Cathaoirleach of Wexford County Council John Hegarty also voiced his full support of the new Council mortgage scheme.
“I encourage all those who aspire to own their own home to give this innovative mortgage scheme strong consideration. Applicants should make early contact with Wexford County Council’s Mortgage Department to determine their eligibility and to examine the ability of the Scheme to meet their particular circumstances and housing needs” said Councillor Hegarty.
The scheme requires applicants to provide a deposit of 10% of the purchase price / build cost. The Chief Executive acknowledged this may pose a challenge for some applicants, and says the Council will examine the possibility of developing a scheme, possibly in partnership with local credit unions, that may help applicants to bridge this funding gap.