The Government has unveiled a new scheme of local authority mortgages that will be available from next week.


Minister for Housing Eoghan Murphy outlined details of the Rebuilding Ireland Home Loan scheme to the housing summit of local authority managers in Dublin on Monday. Under the scheme, the Government will finance local authorities to provide mortgages to people who have been turned down by banks.


The low-interest rate mortgages will be available to purchasers of properties worth up to €320,000 in the greater Dublin area, Cork and Galway, while the ceiling in the rest of the country will be €250,000.


The scheme will be reserved for borrowers with an annual gross income of no more than €50,000, or €75,000 for couples. Central Bank rules will apply so borrowers will be able to take a mortgage for 90 per cent of the property’s value.


Borrowers will be able to choose a fixed rate of 2-2.25 per cent over 25-30 years, terms unavailable from any bank.