You can redeem (buy back) all or part of the FHS equity share at any time although you have no obligation to do so unless a mandatory redemption event occurs.

If you buy back part of the equity share, it is called a partial redemption, or if you buy back all of the equity share it is called a full redemption.

As the FHS equity facility is linked to the value of your home, a current FHS property valuation is required to calculate all redemptions. Before you commit to any redemption payment, the FHS will provide you with a full quote to show you how the redemption has been calculated and any remaining equity share that the FHS will have in your property.

Redemption requests can be made through the FHS customer portal by completing a Redemption Request form, or by calling us on 0818 275 662.

Redemption rules at a glance

  • A property valuation from an FHS approved valuer is required for all redemptions
  • Minimum redemption allowed for partial redemptions is 5% of the original FHS equity amount
  • Up to two redemptions can be made during each 12-month period. For Self-builds, partial redemptions are not permitted until the build of your home is complete
  • Any redemption payments must be made as a single payment (If this is above your daily payment limit you may need to talk to your bank to make arrangements for this)

Mandatory redemption

Under the terms of your FHS Customer Contract, mandatory redemption of the equity share and any accrued service charges is required if:

  • You switch your mortgage to a non-Participating Lender
  • You sell your property
  • Your property is no longer your Principal Private Residence (PPR)
  • The homeowner dies (or, in the case of joint applications, the last applicant dies)

Customers, or the executor of their estate in the case of death, must immediately notify the FHS of any of these events. To notify us, or if you have any questions, please contact us through the FHS customer portal, or by calling us on 0818 275 662.

Redemption Process

Redemption Process

  1. Login to your FHS customer portal
  2. Complete Redemption Request form
    • Download from customer portal
  3. Order Property Valuation
    • Arrange a property valuation with an FHS approved valuer
  4. Upload (or you can send to us by post)
    Form and Supporting Documentation
    • Proof of identity, address
    • Evidence of source of funds
    • Property valuation
  5. Quote Receive Redemption Quote
    • Review the details of your proposed redemption
  6. Payment Make Redemption Payment
    • Arrange payment of funds by Electronic Funds Transfer (EFT)
  7. Receive Redemption Payment Acknowledgment
    • Review your updated account position
  8. Your redemption is now complete
    • For Full Redemptions your solicitor will apply for the cancellation of the inhibition on your property

Sale of property

If you sell your property, you are required to redeem (buy back) your FHS equity share and to pay any accrued service charges in full.

You will need to have a solicitor appointed to sell your property and usually your solicitor will also help manage the full redemption of your FHS equity facility on your behalf.

To avoid unnecessary delays, you must notify the FHS of your intention to sell your property when you are putting your house on the market for sale. You can do this by completing a Sale of Property Notification form which can be accessed through the FHS customer portal and providing us with a letter from your Estate Agent (if applicable) outlining the guide price for your property and the rationale for this price.

Then, when you are ‘Sale Agreed’ on your property, you and your solicitor will need to provide some further documentation to the FHS so that the FHS can provide you with a full redemption quote informing you of how much you need to pay in order to redeem your equity share.

The sale price of your home will usually be used to calculate the amount that you are required to pay to buy back your FHS equity share unless you have a professional or personal relationship with the buyer, in which case a FHS property valuation is used instead.

Any increase in value to your property due to certain home improvements undertaken by you (material alterations) will be discounted from the calculation of your final redemption amount.

Your property is no longer your Principal Private Residence (PPR)

Under the rules of the FHS your property must be your Principal Private Residence (PPR). A PPR is defined as a house or apartment which is owned and occupied as the Customer’s only, or main, residence.

Your property is still considered your PPR if you are not living in the property for one of the following reasons:

  • You cannot live in the property because your employer requires you to live elsewhere (up to a four-year maximum)
  • You have a job, all the duties of which are performed outside the Republic of Ireland, for up to four years
  • Your PPR remains unoccupied, and you are either:
    • receiving care in a hospital, nursing home or convalescent home
    • resident in a retirement home on a fee-paying basis

Should your property no longer be your PPR under the rules of the FHS, you must redeem the full equity share, as well as service charges that have accrued against the equity facility, within 3 months. Please notify the FHS by contacting us via the FHS customer portal, or by calling us on 0818 275 662.

Sale of Property Process

  1. Login to your FHS customer portal
  2. Complete
    Sale of Property Notification form
    • Download from the customer portal
    • Tell us if you have made Material Alterations
    • Provide Solicitor Details
  3. Upload (or you can send to us by post)
    Form and Estate Agent Letter
    • Letter must outline Guide Price and Rationale
  4. Property Valuation
    If you have made any Material Alterations the FHS will arrange a Property Valuation with an approved valuer
  5. Sale Agreed
    Upload Supporting Documentation
    • Proof of identity and address
    • Statutory Declaration of Sale
  6. Quote
    Receive Redemption Quote
    • Review the details of your redemption
    • Accrued Service Charges must be paid in full
  7. Payment
    Make Redemption Payment
    • Arrange payment of funds by Electronic Funds Transfer (EFT)
  8. Your redemption is now Complete
    Your Solicitor will apply for the cancellation of the inhibition on your property

WARNING: We strongly recommend that you seek advice from an independent financial adviser and legal adviser if applying for this product.

WARNING: Property prices can go up and down. As the equity facility is linked to the value of your home, any change in property prices will affect any partial or final redemption amounts. If property prices increase/decrease over time, the percentage equity you have to redeem will remain the same but the € amount will increase/decrease. See examples in the case of a price increase below:

Example 1: Home Purchase (private development)
Customer purchases a property for €250,000, availing of €25,000 from the First Home Scheme (FHS) which means the FHS has a 10% FHS equity share in your home.
Sometime in the future you decide to buy out the FHS equity share. The home is now valued at €350,000. As the FHS equity share is unchanged at 10%, you will now need €35,000 plus any accrued service charges payable, to redeem the FHS equity share in the home.

Example 2: Self-build (own site)
Customer owns a site valued at €100,000 and builds a house on that site at a cost of €300,000.
Customer avails of €30,000 from the First Home Scheme (FHS) which means the FHS has a 10% FHS equity share in your house built on the site.
Sometime in the future you decide to buy out the FHS equity share. The property, including both house and original site is now valued at €500,000.
At the time of build, the site value represented 25% of the total value of the home (i.e.€100,000) and this 25% will now be discounted from the current value before calculating the FHS Equity amount to be redeemed (€500,000 less current site value of €125,000, equals €375,000). As the FHS equity share is unchanged at 10%, you will now need €37,500 (10% of €375,000) plus any accrued service charges payable, to redeem the FHS equity share in the home.

WARNING: The First Home Scheme is not regulated by the Central Bank of Ireland and the equity product is not governed by the Central Bank and its statutory codes of conduct and/or other regulations to include the Consumer Protection Code. However, this does not affect your rights under consumer law.