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

Westwood

Hi.
I've placed 10k booking deposit down on a new property values at 330k. The max the bank will loan me is 215k. Help to buy figures is coming in at 7.4k. my question is does this rebate come off the price or added to your deposit. I'm falling short here of the 70 %LTV rule what can I do?

hanaimai

Westwood wrote: »

Hi.
I've placed 10k booking deposit down on a new property valued at 330k. The max the bank will loan me is 215k. The remainder will be savings to make the shortfall. Help to buy figures is coming in at 7.4k. my question is does this rebate come off the price or added to your deposit. I'm falling short of the 70 %LTV rule what can I do here?

If you're under 70% LTV you don't qualify for the HTB scheme. To answer your question anyway, it should be subtracted from the deposit, not the price of the house.

Westwood

Thanks, so purchase price 330k requires deposit of 99k and mortgage of 231k to qualify for 70%LTV requirements. So all I need to give is 91.6k deposit but does this affect my LTV here I'm confused 😀

hanaimai

Westwood wrote: »

Thanks, so purchase price 330k requires deposit of 99k and mortgage of 231k to qualify for 70%LTV requirements. So all I need to give is 91.6k deposit but does this affect my LTV here I'm confused 😀

The HTB rebate doesn't affect your LTV because the LTV is determined by your loan amount and the value of the house. All that changes with the rebate is the amount of cash you have to pay out of your own account. Your sums are correct anyway, to stick with a 70% LTV and qualify for the rebate, you will need to borrow at least 231k.

If you can afford to only borrow 215k and pay the remaining 115k upfront, you should probably do that though. The interest you'd pay over the life of the mortgage on the extra amount borrowed will probably be more than the rebate.

Westwood

Thank you. You're right the extra interest over 31 years is 8.5k. I guess the extra 7.4k would help with up front costs but less borrowed is always better as you say.. The property is not ready until the end of the year possibly even Jan 2019, I had hoped to use the 2018 tax year also with the HTB. Am I right in thinking if when I sign contracts in a couple of weeks that's when I submit my help to buy funding and that's all I'll be entitled too up to 2017. Or can I submitted this at any stage of purchase even after or at final closing? My circumstances will change financially by the end of the year and I'd like to keep this option alive..

climber59

Quick question as everyone here was so helpful when I started my application.

We’ve submitted the claim now for the refund and sent the access and claim codes to the developer. On my account it says my claim is pending. Do I just need to wait for the developers to do their bit? Will it tell me when it’s approved/they get the refund?

I searched this thread but could only find answers for self builds which seem a little different - we’re just regular buyers.

SNNUS

It will change to approved when the developer enters their details.

climber59 wrote: »

Quick question as everyone here was so helpful when I started my application.

We’ve submitted the claim now for the refund and sent the access and claim codes to the developer. On my account it says my claim is pending. Do I just need to wait for the developers to do their bit? Will it tell me when it’s approved/they get the refund?

I searched this thread but could only find answers for self builds which seem a little different - we’re just regular buyers.

climber59

Great - thanks a mil for that!

SNNUS

climber59 wrote: »

Great - thanks a mil for that!

No probs, are ye far off completion?

climber59

Ah yeah ages! I just want this bit over so then we can relax for the summer with everything tied up. It’s due to be finished Nov/Dec - if it stays on schedule.

tailgunner

I'm looking at buying a new build. Most likely paying the booking deposit this week, and signing contracts next month. The house is about 9 months from completion, so presumably I won't be drawing down the mortgage till 2019 (open to correction here).

Will I be able to apply for the HTB scheme next year in this scenario? I want to use 2018 as one of the income tax years, which means I can't apply this year.

awec

tailgunner wrote: »

I'm looking at buying a new build. Most likely paying the booking deposit this week, and signing contracts next month. The house is about 9 months from completion, so presumably I won't be drawing down the mortgage till 2019 (open to correction here).

Will I be able to apply for the HTB scheme next year in this scenario? I want to use 2018 as one of the income tax years, which means I can't apply this year.

They will take it when you sign contracts, not when you draw down.

*FireCracker*

Westwood wrote: »

Thank you. You're right the extra interest over 31 years is 8.5k. I guess the extra 7.4k would help with up front costs but less borrowed is always better as you say.. The property is not ready until the end of the year possibly even Jan 2019, I had hoped to use the 2018 tax year also with the HTB. Am I right in thinking if when I sign contracts in a couple of weeks that's when I submit my help to buy funding and that's all I'll be entitled too up to 2017. Or can I submitted this at any stage of purchase even after or at final closing? My circumstances will change financially by the end of the year and I'd like to keep this option alive..

If the bank were willing to lend you the 70% and you opted for a variable rate initially you could get the HTB and then immediately pay back the difference once you'd closed.

Westwood

Possible scenarios below do you guys think the bank would allow this? Considering I only can get 65% LTV off the bank, it not like they'll give me 80% but I have the surplus cash to close sale, any other likely scenarios you guys can think the bank may agree to?


1) I deposit 16k of my own funds into my bank mortgage account before drawdown allowing bank to lend €231k, I can then avail of the scheme.
2) Bank add an early redemption clause to enable me to part redeem €16k once drawn down or could opt for a variable rate.
3) Bank withhold all cashback incentives €4300(+) plus the grant is paid directly to them €7400 and I pay the balance upfront €4400 all before drawdown.

SNNUS

Clutching at straws I would think.. 70% LTV or no HTB scheme can be applied.

Westwood wrote: »

Possible scenarios below do you guys think the bank would allow this? Considering I only can get 65% LTV off the bank, it not like they'll give me 80% but I have the surplus cash to close sale, any other likely scenarios you guys can think the bank may agree to?


1) I deposit 16k of my own funds into my bank mortgage account before drawdown allowing bank to lend €231k, I can then avail of the scheme.
2) Bank add an early redemption clause to enable me to part redeem €16k once drawn down or could opt for a variable rate.
3) Bank withhold all cashback incentives €4300(+) plus the grant is paid directly to them €7400 and I pay the balance upfront €4400 all before drawdown.

GingerLily

Westwood wrote: »

Possible scenarios below do you guys think the bank would allow this? Considering I only can get 65% LTV off the bank, it not like they'll give me 80% but I have the surplus cash to close sale, any other likely scenarios you guys can think the bank may agree to?


1) I deposit 16k of my own funds into my bank mortgage account before drawdown allowing bank to lend €231k, I can then avail of the scheme.
2) Bank add an early redemption clause to enable me to part redeem €16k once drawn down or could opt for a variable rate.
3) Bank withhold all cashback incentives €4300(+) plus the grant is paid directly to them €7400 and I pay the balance upfront €4400 all before drawdown.

That's not how it works - sorry!

hanaimai

In fairness, if you have the cash to put towards 35% of the cost of a house, you're already in a pretty decent position and you're not really the demographic the HTB scheme is designed for.

sightband

hanaimai wrote: »

In fairness, if you have the cash to put towards 35% of the cost of a house, you're already in a pretty decent position and you're not really the demographic the HTB scheme is designed for.

I had well over what was required, used it to furnish and attic convert. Had absolutely no need for the €20k...but I qualified legitimately. Gives you an idea of what an absolute farce the scheme is and what a clown Coveney and the rest of that government is and are, there are plenty more like me. way I look at it, I didn’t really benefit as I bought a year into the scheme/farce. prices in the development went up by as much for no reason.

Qualifying for this scheme at the moment basically ensures you lose less.

Westwood

I agree. I'm on a single salary trying to buy a 330k home which is about the cheapest aroound, I've actually had to borrow a significant portion of the 35% from a parents Credit union account, I didn't just have 115k lying around you know? But all I qualify is for 65 % and that's with a central bank exemption. Nearly impossible to buy this house but where theirs a will theirs a way and it would have been nice to get the measly 7k back that I overpaid in tax over the years but thats even too much for the government to give.

SNNUS

Westwood wrote: »

I agree. I'm on a single salary trying to buy a 330k home which is about the cheapest aroound, I've actually had to borrow a significant portion of the 35% from a parents Credit union account, I didn't just have 115k lying around you know? But all I qualify is for 65 % and that's with a central bank exemption. Nearly impossible to buy this house but where theirs a will theirs a way and it would have been nice to get the measly 7k back that I overpaid in tax over the years but thats even too much for the government to give.

Have you paid off the loan ? did the bank ask where this money came from?

Westwood

No it's not paid back, once I start paying the mortgage which is 600 quid cheaper a month then my rent I can overpay the other debt I have. The bank were told that the deposit is a gift.This is very common today as people struggle with deposits. And don't even get me started about having to pay stamp duty as a first time buyer, absolutely ludicrous.

SNNUS

I'm a single buyer myself so I know the struggle.. The banks scrutinised every bit of my account though! Have you started repayments on the other loan or does it not come out of your account as a direct debit?

If you are buying a new build stress to your solicitor that stamp duty is 1% of the property minus 13.5% vat. They generally just charge 1% of purchase price which is incorrect.

Westwood wrote: »

No it's not paid back, once I start paying the mortgage which is 600 quid cheaper a month then my rent I can overpay the other debt I have. The bank were told that the deposit is a gift.This is very common today as people struggle with deposits. And don't even get me started about having to pay stamp duty as a first time buyer, absolutely ludicrous.

Westwood

Thanks didn't know about the vat, every little helps. Yes I've started paying back the loan and have that as rent coming from my account into another account not in my name and then split for rent and loan from there. That's the reality for me, how else is a single working man on a relatively decent salary able to afford a house within the commuter belt of Dublin?

bri007

Can never understand why the stamp duty isn’t scrapped, especially with the difficulty first time buyers are facing getting up the initial deposit alone!

Between stamp duty and solicitors fees etc, it’s a deposit in itself.

Never hear of any word about getting rid of it, even from opposition parties!

They make out that they are trying to tackle the housing crisis but in fact they are doing nothing!

To much invested interest it would appear!

Westwood wrote: »

No it's not paid back, once I start paying the mortgage which is 600 quid cheaper a month then my rent I can overpay the other debt I have. The bank were told that the deposit is a gift.This is very common today as people struggle with deposits. And don't even get me started about having to pay stamp duty as a first time buyer, absolutely ludicrous.

sightband

bri007 wrote: »

Can never understand why the stamp duty isn’t scrapped, especially with the difficulty first time buyers are facing getting up the initial deposit alone!

Between stamp duty and solicitors fees etc, it’s a deposit in itself.

Never hear of any word about getting rid of it, even from opposition parties!

They make out that they are trying to tackle the housing crisis but in fact they are doing nothing!

To much invested interest it would appear!

They are doing plenty, plenty to stir up the market, recapitalise banks and to bring people out of negative equity. We lose sight of just how many people are happy and completely silent are about the current situation. That’s an awful lot of voters being pulled out of negative equity. The whole first time buyer and house ownership trend in Dublin in particular is soon to be a thing of the past for the majority. The last few weeks has seen massive developments purchased in south Dublin purely for the rental market. If any positive is to be taken from it may provide some long term rental stability and security for families instead of the **** show at the moment.

Graham

bri007 wrote: »

Can never understand why the stamp duty isn’t scrapped, especially with the difficulty first time buyers are facing getting up the initial deposit alone!

Between stamp duty and solicitors fees etc, it’s a deposit in itself.

Never hear of any word about getting rid of it, even from opposition parties!

They make out that they are trying to tackle the housing crisis but in fact they are doing nothing!

To much invested interest it would appear!

+1

Stamp duty could quite sensibly be replaced/reduced with increased property taxes which would remove some of the burden at construction stage and generate a more reliable/even income for the state.

The problem is it's not a popular option

Tipsy McSwagger

I’ve signed up as a group. Waiting for my girlfriends password to be mailed out for over 2 weeks. They sent a letter alright saying she’s been invited to the group but no password.

GingerLily

Tipsy McSwagger wrote: »

I’ve signed up as a group. Waiting for my girlfriends password to be mailed out for over 2 weeks. They sent a letter alright saying she’s been invited to the group but no password.

Ring them, we had issues with passwords too, they had a mismatch with addresses (they had an older address on file for other reasons), so instead of telling us they just didn't send anything.

Tipsy McSwagger

GingerLily wrote: »

Ring them, we had issues with passwords too, they had a mismatch with addresses (they had an older address on file for other reasons), so instead of telling us they just didn't send anything.

They emailed me to say it’s on the way.

Tipsy McSwagger

If I can claim 6k and my gf can claim 8k on a 200k mortgage, so deposit of 20k, how exactly does that work?