LAHL vs Bank Mortgage: When the Council Loan Wins
The Local Authority Home Loan has a reputation as the "last resort" mortgage. But with fixed rates from 3.35% and no stress test on variable rates, it's actually competitive with — or better than — mainstream banks in several scenarios.
Head-to-Head Comparison
| Feature | LAHL | Bank Mortgage |
|---|---|---|
| Interest rate | 3.35% (25yr) / 3.85% (30yr) fixed for full term | 3.40–4.20% (fixed 1–10yr, then variable) |
| Rate certainty | Fixed for entire mortgage — never changes | Fixed for chosen period, then variable |
| LTI limit | 4× income (same as banks) | 4× income (FTB) |
| Deposit | 10% minimum | 10% minimum |
| Property types | New build, second-hand, self-build | New build, second-hand, self-build |
| Switching | Cannot switch to another lender | Can switch freely |
| Overpayments | Allowed | Depends on lender/product |
| Cashback | None | Up to 2% of loan (some lenders) |
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When LAHL Wins
- If you want full-term rate certainty: 3.35% fixed for 25 years is exceptional. Banks fix for 1–10 years max, then you're on variable.
- If banks won't approve you: LAHL is designed for buyers who can afford repayments but don't meet bank criteria (self-employed, contract workers, thin credit history).
- If you're buying second-hand: Unlike FHS, LAHL works for second-hand homes — a major advantage.
When the Bank Wins
- If you want to switch later: You can't switch a LAHL mortgage. Bank mortgages can be switched for better rates.
- If you earn above LAHL limits: Over €70k single / €85k joint = no LAHL eligibility.
- If you want cashback: Some banks offer €2,000–€6,000 cashback on drawdown.
Check both options: LAHL Checker · Bank Rate Comparison