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If you cannot get a mortgage from a building society bank etc. to purchase or build a house you may be eligible for a loan from Sligo Borough Council.

Do I qualify?

If you can show the Sligo Borough Council that you are unable to get a loan from a bank or a building society, and you are:

• in need of housing and your income satisfies the income test below, or
• a person whose application for Sligo Borough Council housing has been approved by the Sligo Borough Council, or
• a Sligo Borough Council tenant or tenant purchaser who wishes to buy a private house and to return your present house to the Sligo Borough Council, or
• a tenant for more than one year of a house provided by a voluntary body under the Rental Subsidy Scheme who wishes to buy a private house and return your present house to the voluntary body,

you may apply to Sligo Borough Council for a house purchase loan.

How does the income test apply?

Single income household
Multiply your gross income (before tax) in the last income tax year by 2.5. If the result is €80,000) or less you are eligible.

Two income household
Multiply the gross income (before tax) of the principal (greater) earner in the last income tax year by 2.5 and add the gross income of the subsidiary (lesser) earner in the last tax year. If the result is €80,000) or less, you are eligible.

Approved applicants for Sligo Borough Council housing and tenants and tenant purchasers of Sligo Borough Council dwellings and tenants for more than one year of Rental Subsidy Scheme housing surrendering their dwellings are exempt from the above income test.

Can I choose any house I like?

Yes. When you have been approved in principle for a Sligo Borough Council house purchase loan, you may select a new or existing house or build a house. The house must be suitable to your needs, meet certain minimum standards and be acceptable to the Sligo Borough Council.

What size loan can I get?

The loan can be up to 95% of the price of the house subject to a maximum loan of €127,000 and also subject to repayments not amounting to more than 35% of the household net income (i.e. income after tax and PRSI).

How much will my repayments be?

The interest rate on Sligo Borough Council house purchase loans is variable (i.e. it moves up or down) in line with movements in building society variable mortgage rates. The current (July 2003) interest rate is 2.95%. In addition a charge of 0.8% currently is made to meet the cost of mortgage protection insurance to protect the interests of the surviving family by paying of the loan in the event of the death of the borrower or the borrowers spouse.  At this interest rate your repayment will be €1000 borrowed

Home Improvement Loans

The categories of persons eligible for Sligo Borough Council house purchase loans are also eligible for Sligo Borough Council loans for the carrying out of necessary works to improve, repair or extend their existing houses.
The maximum improvement loans are:

• €20,000 where the loan is secured by a mortgage on the house, and
• €8,000 where the loan is not secured.

The interest rate on these loans is the same as for house purchase loans. However, mortgage protection insurance is not provided on home improvement loans.

Is there tax relief available on loans from local authorities?

Yes. You may qualify for the usual income tax relief on mortgage interest. In 2000/2001 the ceiling on mortgage interest for income tax relief in the case of first time purchasers is €3,174 for a single person and €6,349 for a married couple. Your local Inspector of taxes will give you full details.

Further Information

Loans for house purchase and improvement are advanced by County Councils, County Borough Corporations, Drogheda, Sligo and Wexford Corporations, Athlone and Dundalk Urban District Councils. If you think that a loan is an option that may be suited to your circumstances you should contact Sligo Borough Council.