Saving/Applying for a mortgage 2015/16/17/18/19

lillycakes2

Can someone explain what the budget has announced for first time buyers/ building first home in a way that people c\n understand !! Thanks in advance !! I feel really confused

EmmaMurray2016

So no help for first time buyers who can't afford to buy a new build that all seem to be over 300,000!

awec

Utah wrote: »

http://www.budget.gov.ie/Budgets/2017/Documents/Budget%202017%20-%20Full%20document.pdf

Page 46

I am confused about one bit:

In order to qualify, applicants must take out a mortgage of at least 80% of the purchase price, or in
the case of a self-build, 80% of the valuation approved by the mortgage provider. Individuals who
are in a position to avail of a mortgage at a lower loan to value ratio than 80% already have sufficient
resources to more than meet the deposit requirements of the macro-prudential rules and thus are
less in need of assistance from the Exchequer

Surely every first time buyer is in a position to avail of a LTV of less than 80% with the current policy of 10% of the first 220k and 20% of the remainder?

Papav3r

Can I ask what is probably a stupid question? We've put a deposit down on a new build back in March/April.

We're going to be drawing down the mortgage and signing full contracts next year. Does that allow us to qualify?

Utah

Papav3r wrote: »

Can I ask what is probably a stupid question? We've put a deposit down on a new build back in March/April.

We're going to be drawing down the mortgage and signing full contracts next year. Does that allow us to qualify?

Yes. It's done on the contract signing

Utah

awec wrote: »

I am confused about one bit:



Surely every first time buyer is in a position to avail of a LTV of less than 80% with the current policy of 10% of the first 220k and 20% of the remainder?

Seems so, yes

awec

Utah wrote: »

Seems so, yes

Actually I read on a bit in the document, there is a scenario listed with the 10% of 220k thing.

It seems it counts, the wording is just poor.

Michael D Not Higgins

awec wrote: »

I am confused about one bit:



Surely every first time buyer is in a position to avail of a LTV of less than 80% with the current policy of 10% of the first 220k and 20% of the remainder?

You're just reading it as deposit rather than LTV. A lesser LTV is a higher deposit.

awec

Michael D Not Higgins wrote: »

You're just reading it as deposit rather than LTV. A lesser LTV is a higher deposit.

Huh? Can you explain that a bit?

Thefact

Utah wrote: »

Papav3r wrote: »

Can I ask what is probably a stupid question? We've put a deposit down on a new build back in March/April.

We're going to be drawing down the mortgage and signing full contracts next year. Does that allow us to qualify?

Yes. It's done on the contract signing

Here is an example given from the full text of the budget.

Example 7

Tom and Mary signed a contract to purchase a newly built home off the plans in May 2016. Neither of them have purchased a property before. They paid the deposit on the house at the time of contract signing but the developer is still constructing the estate and they have not moved into their new home. As they signed the contract to purchase their property prior to 19 July 2016, they will not qualify for the Help to Buy incentive.

Papav3r

Thefact wrote: »

Here is an example given from the full text of the budget.

Example 7

Tom and Mary signed a contract to purchase a newly built home off the plans in May 2016. Neither of them have purchased a property before. They paid the deposit on the house at the time of contract signing but the developer is still constructing the estate and they have not moved into their new home. As they signed the contract to purchase their property prior to 19 July 2016, they will not qualify for the Help to Buy incentive.

Yeah. Just read it there.

That's a bit of a bummer.

Utah

Papav3r wrote: »

Yeah. Just read it there.

That's a bit of a bummer.

But if you haven't signed contracts you will be eligible?

Michael D Not Higgins

awec wrote: »

Huh? Can you explain that a bit?

LTV is loan to value, with a 20% deposit you have a 80% LTV. A lower LTV is a higher deposit and wouldn't be allowable for the new rebate. In other words, if you can afford a higher deposit you're not entitled to the government assistance since you don't need the help.

Papav3r

Utah wrote: »

But if you haven't signed contracts you will be eligible?

We signed contracts with the deposit. Wondering now if could could void those contracts and sign again.

Hasmunch

Michael D Not Higgins wrote: »

LTV is loan to value, with a 20% deposit you have a 80% LTV. A lower LTV is a higher deposit and wouldn't be allowable for the new rebate. In other words, if you can afford a higher deposit you're not entitled to the government assistance since you don't need the help.

People planning to buy with higher deposits now will just go with the max 20% until they get the rebate and then pay off a lump sum that otherwise would have been used as a larger deposit.

68 lost souls

Papav3r wrote: »

We signed contracts with the deposit. Wondering now if could could void those contracts and sign again.

This is what I would imagine a trove of people doing.

One example I see from a development that increased by €10,000 between the start of the year and now is people canceling ocntracts and resigning at the higher value so 350,000 house becomes 360,000 they get 18,000 back they now have a lower LTV and a bonus 8,000 the builder is happy cause they got an extra 10k?

Michael D Not Higgins

Hasmunch wrote: »

People planning to buy with higher deposits now will just go with the max 20% until they get the rebate and then pay off a lump sum that otherwise would have been used as a larger deposit.

That's quite possible unless there's an additional provision the government haven't explained yet.

awec

Michael D Not Higgins wrote: »

LTV is loan to value, with a 20% deposit you have a 80% LTV. A lower LTV is a higher deposit and wouldn't be allowable for the new rebate. In other words, if you can afford a higher deposit you're not entitled to the government assistance since you don't need the help.

Oh, I am getting my lower LTV and higher LTV mixed up.

Utah

Papav3r wrote: »

We signed contracts with the deposit. Wondering now if could could void those contracts and sign again.

Sorry, I misunderstood as you said you were signing full contracts next year

ThisRegard

There's not just the danger of the builders increasing the prices based on the demand, but it's possible individual banks won't necessarily take into account the rebate when factoring in the deposit they require when supplying a mortgage. It's been posted here that lenders have been as strict, if not stricter, than the central bank rules before the central bank actually came out with those rules.

maupat

Is this FTB's grant linked to the price of the house only?

Or do the Central Bank rules re: salary still apply (i.e. 3.5 times your salary)?

Michael D Not Higgins

maupat wrote: »

Is this FTB's grant linked to the price of the house only?

Or do the Central Bank rules re: salary still apply (i.e. 3.5 times your salary)?

The central bank rules are still applicable. It's just a rebate to help achieve the deposit quicker.

awec

maupat wrote: »

Is this FTB's grant linked to the price of the house only?

Or do the Central Bank rules re: salary still apply (i.e. 3.5 times your salary)?

It doesn't change any of the existing rules, it is just a way for you to claim a portion of your deposit from the government.

Naid23

so im confused, do you get the grant upfront or do you claim in back in taxes after you get the house?

awec

Naid23 wrote: »

so im confused, do you get the grant upfront or do you claim in back in taxes after you get the house?

You get it up front. Well, presumably you'll get some sort of form that shows you will get it that you can show to the bank, and you'll get the actual money when the bank gives you proof you're buying a house.

The claiming it back in taxes is for people who bought between 19th July and the end of this year, because the scheme only opens for applications in January.

Naid23

awec wrote: »

You get it up front. Well, presumably you'll get some sort of form that shows you will get it that you can show to the bank, and you'll get the actual money when the bank gives you proof you're buying a house.

The claiming it back in taxes is for people who bought between 19th July and the end of this year, because the scheme only opens for applications in January.

Ah i see. that makes more sense then the stuff i was reading.
We cant afford the new builds in the areas we looking at as the all 350k+ so wont really make a difference to us.

Siipina

Ah lovely, so buying a second-hand house is not good enough. So its on the end of the day a win for the developer again and all the new build prices will go through the roof. Very clever.

Ah well, vendors want to close earlier, which is great. They are lovely people, called them on Thursday to tell them that we signed the contracts and when the closing date will be. They told us that they are nearly done with moving out so yesterday our Solicitor got a letter requesting closing date on the 21st instead the 26th. Everyday earlier is great. Talked with the bank as well yesterday and it seems no problem. Oh hopefully everything will go well.

Laghan

I was supposed to sign the contracts tomorrow. There are 2 small extensions to the property, one is pre 1991 and contains the bathroom which was once an out-house! The 2nd extension basically connects the bathroom to the main house, it's very poorly built (timber frame directly on ground, no dpc, poor detailing of the roof where it connects to the existing house resulting in a small leak). I didn't mind this as the plan is to knock the 2 extensions during renovations. However, there was no planning for extension no.2 and there is no certificate of exemption. The solicitor is going back to enquire with the vendors solicitor as there is no mention of it in the documents, she will also have to note this to the bank who are giving the mortgage so that everything is above board. I'm worried that the bank might not give the mortgage on it. The solicitor said usually if it's there longer than 7 years then normally its not a problem but she can't garuantee it. Has anyone had something similar??

Zzippy

Banks will not normally allow a mortgage where there is a planning irregularity. We were sale agreed on a house previously that was built in the wrong location on the site, in the 1970s so well past the 7 year limit, but the bank wouldn't lend on it until the vendor got retention planning. In this case, if you tell the bank you are planning to knock it they may overlook the irregularity, but that's a discussion you need to have with them. The solicitor has a duty to tell the bank AFAIK, it's not something you can hide from them.

IvoryTower

IvoryTower wrote: »

I'm very slowly saving for a deposit. Feels like it's going to take forever. My dad has land which he says I can build on, will this change how much of a deposit I need? As in, can I use it as my deposit or at least some of it?

I rang the bank and asked. Still need to have full deposit saved and tick all the usual boxes.