Council Mortgages

corkcounty

Hi All,

I am a unemployed woman and my partner is on 30k and we are looking to get a council mortgage? has anyone ever succeeded in getting one? we were told by one bank that all we will get is 40k and another 90k, the 40k is a laugh. he is separated and has to pay maintenance and they really hold that against him, very much so.

We want to build for around 140k and wont be able to do that with the two offers we have.

Is it hard to apply and what are the time frames?

I'd love your opinion on it.

Thanks

ricman

I,M NOT an expert but i thought you looked at home x, then go to the council and see can they give you a mortgage,thats what my friend did.
She paid 50percent mortgage/50 per cent rent to dublin city council, then switched to 100 per cent mortgage after 3 years.I NEVER heard of someone getting a council loan to build a house ,have you a site ,do you own land .
go to council,fill in forms, they,ll say you are eligible for a loan up to x amount,they arrange the loan thru bank x, you pay a solicitor for conveyancing .
they take into account,your income,savings ,expenses etc
i read in the paper there will be alot of developer sales, eg 20 houses going for x amount, large discount to sell em off quick, in the next 12months.
i think its easy to apply, fill in the forms, need id, proof of income,bank statements etc

corkcounty

ricman wrote: »

I,M NOT an expert but i thought you looked at home x, then go to the council and see can they give you a mortgage,thats what my friend did.
She paid 50percent mortgage/50 per cent rent to dublin city council, then switched to 100 per cent mortgage after 3 years.I NEVER heard of someone getting a council loan to build a house ,have you a site ,do you own land .
go to council,fill in forms, they,ll say you are eligible for a loan up to x amount,they arrange the loan thru bank x, you pay a solicitor for conveyancing .
they take into account,your income,savings ,expenses etc
i read in the paper there will be alot of developer sales, eg 20 houses going for x amount, large discount to sell em off quick, in the next 12months.
i think its easy to apply, fill in the forms, need id, proof of income,bank statements etc

We have a site, given to us by my parents and its cheaper to build coz their houses are going for 170k plus. we have relatives in the building business etc and can do it far cheaper, i did read some where about it but cant find any info on it

snubbleste

Yep it does exist http://www.environ.ie/en/DevelopmentandHousing/Housing/HousingGrantsFinancialAssistance/LocalAuthorityLoans/

You need to satisfy some rigid criteria. I suggest you approach your local county councillors and ask them if they have any experiences in this area.

ricman

HAVE a look on the local council website, search loans .

The_Conductor

You can apply for a local authority/council loan to build your own home.

In general:

1. Both you and your partner must be first time buyers- as defined by the act.
2. You must not hold or have previously held, mortgages elsewhere (ties into 1)
3. You must have been refused a mortgage (not offered a lowered mortgage) by both a bank and a building society
4. Your current rent must be sufficient to service the mortgage from a maximum of 35% of your net income, over a maximum 30 year term.
5. No deposit is required, but 3 extra points if the borrower can document a proven saving history, equal to sufficient to service at least 20% of the proposed loan value.

With respect of building your own property- it is not a valid assumption to presume that you can build more cheaply than you might be able to buy on the open market (and it is also not a valid assumption that you will automatically be given planning permission in the way it was customary to grant it to children in previous years).

You really need to research this a lot better. I genuinely don't think you'd qualify for a local authority loan- as I don't think either party would meet the first time buyer criteria- ironically, as a seperated man, your partner is covered under the exemption- you however would not be.

You need to get proper advice on this.

foxy06

I was told by Bray Town Council that they don't do mortgages anymore. Don't know if thats the case with other councils though.

MRBEAVER

Most Councils still do mortgages. The main advantage is that the deposit required 3% rather than the min 8% required by most banks. It is a long process though.

ellejay

foxy06 wrote: »

I was told by Bray Town Council that they don't do mortgages anymore. Don't know if thats the case with other councils though.

Wicklow County Council do though.

The most you can borrow is €185k
Repayments cannot be more than 35% of your Net Income
The term cannot exceed 30 years.

The above information I have is a year old and a lot has changed in the meantime so it might be worth your while ringing your local authority to confirm.

Regards,
Lj.