2017-21 help to buy scheme - megathread. All help to buy discussion here please

Xios

Pete123456 wrote: »

Yeah DubLad is right, what matters is the date you signed the contract, not the completion date - unless for some reason it wasn’t complete for 2 years or more then I think Revenue can claw back also unless there’s a reasonable excuse etc

We’re in the same boat only a few months out

I don't think you're correct.

We signed our contracts in early December, we get a new HTB application this year, it was to our advantage as well, we got more money.

The HTB is drawn down around the same time as the mortgage, so if you haven't taken the funds yet, then you'll need a new application for 2021. At least that's what i think to be correct.

Pete123456

Xios wrote: »

I don't think you're correct.

We signed our contracts in early December, we get a new HTB application this year, it was to our advantage as well, we got more money.

The HTB is drawn down around the same time as the mortgage, so if you haven't taken the funds yet, then you'll need a new application for 2021. At least that's what i think to be correct.

You’re right HTB does expire at the end of the year and that makes sense as it’s related to the previous 4 years and the oldest will have expired etc so revenue require you to submit a new application.

The builder will want their money and if you had said that you needed 2020 to be included I can see why they would wait. They will wait to claim until they get your go ahead with the claim code.

According to the revenue guide to HTB for contractors, the developer verifies your claim once you give them your claim code. They then provide their BIC and IBAN and assuming all matches on Revenues side, the amount is “Refunded” to the Developer within five working days. This suggests that the developer does not need to wait until you draw down.

However, as I said, if you don’t meet the HTB criteria (living in the house for 5 years etc) revenue can claw back from you. If the contractor does not meet the criteria (property is not bought within 2 years of them claiming your HTB, or grounds to believe it will not be bought within two years) they will claw back from the developer.

I hope that makes sense. I also confirmed the above with our solicitor

DubLad69

Xios wrote: »

I don't think you're correct.

We signed our contracts in early December, we get a new HTB application this year, it was to our advantage as well, we got more money.

The HTB is drawn down around the same time as the mortgage, so if you haven't taken the funds yet, then you'll need a new application for 2021. At least that's what i think to be correct.

It can be done either way. Depending on what way works for you. If you are using the HTB as your deposit it will usually be taken shortly after. But you can choose to give those details to the developer at any time that you wish.

Pete123456

DubLad69 wrote: »

It can be done either way. Depending on what way works for you. If you are using the HTB as your deposit it will usually be taken shortly after. But you can choose to give those details to the developer at any time that you wish.

Yes, sorry so I should clarify - I’m assuming you are using your HTB as part deposit, which most do I expect.

georgieox

I applied mid January and still waiting for the application to come back. Just wondering if anyone else has started to hear back? Hoping they are making their way through the backlog

DubLad69

georgieox wrote: »

I applied mid January and still waiting for the application to come back. Just wondering if anyone else has started to hear back? Hoping they are making their way through the backlog

I heard back yesterday. But then it turns out that my partner owed €70 in tax from two years ago. So we paid that yesterday and let them know. I'm just hoping now that we are not back down the bottom of the pile

Markitron

georgieox wrote: »

I applied mid January and still waiting for the application to come back. Just wondering if anyone else has started to hear back? Hoping they are making their way through the backlog

I applied in mid January and it was under review until last Friday when it was approved. They seem to be getting through the backlog so hopefully you won't be waiting much longer.

georgieox

Thanks guys - mine is still at ‘await membership confirmation’ and my partner says the same thing - assuming this is normal?

Markitron

georgieox wrote: »

Thanks guys - mine is still at ‘await membership confirmation’ and my partner says the same thing - assuming this is normal?

No, mine said 'under review', which I believe is what most people saw.

Pete123456

georgieox wrote: »

Thanks guys - mine is still at ‘await membership confirmation’ and my partner says the same thing - assuming this is normal?

We had that for about 2 weeks until I called and asked them to expedite, if you call and explain the situation they should push it through if you need them to

caoimhe_kelly

Mortgage
You must take out your mortgage on the property with a qualifying lender. This loan must be used only for buying or building the property. The loan must be at least 70% of the purchase value of the property. This is known as the loan to value ratio.

Does anybody know where to find a list of approved qualifying lenders? I'm really struggling to hit the 70% LTV mortgage requirement so want to try everything before giving up

awec

caoimhe_kelly wrote: »

Mortgage
You must take out your mortgage on the property with a qualifying lender. This loan must be used only for buying or building the property. The loan must be at least 70% of the purchase value of the property. This is known as the loan to value ratio.

Does anybody know where to find a list of approved qualifying lenders? I'm really struggling to hit the 70% LTV mortgage requirement so want to try everything before giving up

What do you mean you're struggling to hit the 70% LTV target?

Struggling to hit that target basically means you've too much money to avail of HTB.

DubLad69

awec wrote: »

What do you mean you're struggling to hit the 70% LTV target?

Struggling to hit that target basically means you've too much money to avail of HTB.

It probably means that they were not able to get a large enough mortgage to cover 70% of the house that they want, but with the HTB they could afford the house by using up all of their savings.

I was almost in that situation last year. The bank would give me just under 70% of the value of the house, but because we had been saving for so long if we were to be given the 30k from help to buy we would have been able to barely pay for the house. But without the 30k never would have been able to.

In the end another bank offered us more. So we were able to buy the house and have money to furnish.

caoimhe_kelly

DubLad69 wrote: »

It probably means that they were not able to get a large enough mortgage to cover 70% of the house that they want, but with the HTB they could afford the house by using up all of their savings.

I was almost in that situation last year. The bank would give me just under 70% of the value of the house, but because we had been saving for so long if we were to be given the 30k from help to buy we would have been able to barely pay for the house. But without the 30k never would have been able to.

In the end another bank offered us more. So we were able to buy the house and have money to furnish.

Yes. This is the situation I am in. I need to borrow more to hit the 70% to get the 30k. This will get me over the line with the house I hope to buy

DubLad69

caoimhe_kelly wrote: »

Yes. This is the situation I am in. I need to borrow more to hit the 70% to get the 30k. This will get me over the line with the house I hope to buy

You could ask the builders to bill you seperatly for the kitchen, floors, appliances etc, it could get you over the line if you are only a Little bit off.

Guys thanks for the conversation and info re HTB, I think its worth a shot sending it it anyway, we have paid the balance of the deposit less the expected HTB amount and I would like to get it under way sooner rather than later just to get it done

Just to note, tho, our HTB expires 31/03, not at the end of the year. We got approval in December so maybe it's a special arrangement to cover that time of year?

Have to say that we have gotten info and approvals very quickly from them so far (within hours) so maybe it's January return time and backlogs that has it slow now.

iamsosmart

Hey all,

Figured I'd give an update on my HTB experience! I applied with my partner in January, moved from 'Under Review' recently and I got a notification 'Your application cannot proceed because either you have outstanding issues on your tax affairs or all group members have not confirmed membership of the group. When these issues are resolved this application can proceed.'

I managed to get through to Revenue by phone yesterday, they confirmed we have to wait for the application to be manually reviewed as my partner's employer was using the Employment Wage Subsidy Scheme for a few months in 2020.

I guess our other option is to cancel the application and re-apply without his 2020 tax year. I assume that would leave us worse off though..

georgieox

Thanks for letting me know! I am in the same boat as you and when I spoke to revenue they said they have separate people working on that queue so shouldn’t be too much longer!

iamsosmart wrote: »

Hey all,

Figured I'd give an update on my HTB experience! I applied with my partner in January, moved from 'Under Review' recently and I got a notification 'Your application cannot proceed because either you have outstanding issues on your tax affairs or all group members have not confirmed membership of the group. When these issues are resolved this application can proceed.'

I managed to get through to Revenue by phone yesterday, they confirmed we have to wait for the application to be manually reviewed as my partner's employer was using the Employment Wage Subsidy Scheme for a few months in 2020.

I guess our other option is to cancel the application and re-apply without his 2020 tax year. I assume that would leave us worse off though..

iamsosmart

georgieox wrote: »

Thanks for letting me know! I am in the same boat as you and when I spoke to revenue they said they have separate people working on that queue so shouldn’t be too much longer!

Thankfully we're not under pressure as we are only starting off the mortgage application process!

caoimhe_kelly

DubLad69 wrote: »

You could ask the builders to bill you seperatly for the kitchen, floors, appliances etc, it could get you over the line if you are only a Little bit off.

Good suggestion. I had tried that but unfortunately no go. It's a developer and this is the first estate he has built so he won't do anything for me. He's too new to the game I feel

Busi_Girl08

iamsosmart wrote: »

Hey all,

Figured I'd give an update on my HTB experience! I applied with my partner in January, moved from 'Under Review' recently and I got a notification 'Your application cannot proceed because either you have outstanding issues on your tax affairs or all group members have not confirmed membership of the group. When these issues are resolved this application can proceed.'

I managed to get through to Revenue by phone yesterday, they confirmed we have to wait for the application to be manually reviewed as my partner's employer was using the Employment Wage Subsidy Scheme for a few months in 2020.

I guess our other option is to cancel the application and re-apply without his 2020 tax year. I assume that would leave us worse off though..

Did Revenue tell you yesterday if your partner has to pay back the WWS tax liability to proceed? Or how long the manual review would take? I thought that was what the initial delay was

iamsosmart

Busi_Girl08 wrote: »

Did Revenue tell you yesterday if your partner has to pay back the WWS tax liability to proceed? Or how long the manual review would take? I thought that was what the initial delay was

I told the Revenue person that I was under the impression the refunds were due over the next four years rather than immediately, and she confirmed this. She said because there's tax due on the COVID-related payments in 2020, the HTB application has to be manually reviewed. She couldn't give any idea on how long it will take.

It's a case of just waiting for now. If we go sale agreed, we can upload the relevant documents to Revenue and call them to push it along.

Busi_Girl08

iamsosmart wrote: »

I told the Revenue person that I was under the impression the refunds were due over the next four years rather than immediately, and she confirmed this. She said because there's tax due on the COVID-related payments in 2020, the HTB application has to be manually reviewed. She couldn't give any idea on how long it will take.

It's a case of just waiting for now. If we go sale agreed, we can upload the relevant documents to Revenue and call them to push it along.

Perfect thanks. That's what I was thinking. It's just a waiting game really but it would be great to know how much we can expect to get. Going on a call with our broker in the next few days about our application so was hoping to have this sorted.

Shivs123

Hi guys,

We applied 5 weeks ago now and sent over documentation yesterday to hurry it along after speaking with them over the phone.

I just got an email from them saying it got cancelled:

"Help To Buy Application – Group Application Cancellation
You or another group member has cancelled the application or declined to join the group.


The Help To Buy Group Application will now be cancelled.

If you wish to re-apply for the Help To Buy Incentive you will need to input a new application."

I created the application and my boyfriend was down as "member added successful"

Has anyone else experienced this? So so so stressfull

niniboots

Yes, we got similar message cancelled, it was a tax liability due from 2018 just 98 euro underpayment. We paid that and started a new application which went through in couple of days.

Check your messages as there was an inquiry letter email with it.

Shivs123

Thanks! I rang them and got it sorted, I owed money from 2019!
They confirmed they are not taking the Covid underpayments into account.

badger54

Is it permissible to avail of HTB, borrow 70% on a variable rate mortgage, make one payment and then switch to a fixed rate whilst making a lump sum payment so borrowing is reduced below 70%?

I haven't seen anything from Revenue on this.

I assume banks wouldn't care, but perhaps might be wary of advising them in advance.

Thoughts welcome, thankfully HTB and enforced lockdown means mortgage can perhaps be reduced to 60 or 65%.

Mercury12

Hi there

We have applied for HTB a month ago and the status is still "Under Review", we were sent a generic answer when enquiring about the reason. There is currently "a backlog" and it will be dealt with as soon as possible. This is understandable considering the context, but has anyone received their HTB recently and how long was the wait for you?

Thanks

Markitron

Mercury12 wrote: »

Hi there

We have applied for HTB a month ago and the status is still "Under Review", we were sent a generic answer when enquiring about the reason. There is currently "a backlog" and it will be dealt with as soon as possible. This is understandable considering the context, but has anyone received their HTB recently and how long was the wait for you?

Thanks

I applied about 5 weeks ago, got the same messages as you, it was approved last Friday. You shouldn't be waiting too much longer.

elchupanebrey

badger54 wrote: »

Is it permissible to avail of HTB, borrow 70% on a variable rate mortgage, make one payment and then switch to a fixed rate whilst making a lump sum payment so borrowing is reduced below 70%?

I haven't seen anything from Revenue on this.

I assume banks wouldn't care, but perhaps might be wary of advising them in advance.

Thoughts welcome, thankfully HTB and enforced lockdown means mortgage can perhaps be reduced to 60 or 65%.

I asked similar question a couple of weeks ago. From my understanding it should not be an issue. It may also be possible to take a split mortgage where a certain amount is variable and the remainder is on a fixed rate. You can potentially pay off the variable rate quicker if your funds allow. Ask your bank/broker is this an option