Sorry the relevant subsections are:
88 (5) A housing authority may, subject to subsection (6), enter into an agreement with a holder of a licence under the Central Bank Act 1971 , a building society or other financial institution that a charge proposed to be created by it by a charging order shall have a priority, as against a mortgage or charge proposed to be created in favour of that holder, society or institution, that is different from the priority the charge would otherwise have if this subsection had not been enacted.
88 (6) A housing authority may only enter into an agreement referred to in subsection (5) if it considers that the agreement will—
(b) enable a purchaser— (i) to refinance an existing advance of moneys from the holder, society or institution referred to in subsection (5), or (ii) to obtain a further advance of moneys from the holder, society or institution referred to in subsection (5), for any purpose.
88(5) basically says that a local authority may agree to let a banks charge have priority over their charging order - they already did this when you originally purchased this property.
88(6)(b)i and ii allow a local authority to do this in the case of a remortgage with the original bank or in the case of a refinance with another bank.
Until this section was enacted in June of this year it wasn't possible for a local authority to do this. If you have a solicitor acting for you talk to them about this.