Government Funds Local Authority Housing Scheme

SNNUS

OCDee wrote: »

Ah I see, yes just about, but it's very close. And one of those payments is for a small car financing that is 6 months from being payed off. Are they completely black and white about threshold? This indicates that we would need to apply for a smaller mortgage, which isn't ideal/very feasible given the state of the market.

I had a small car loan and was advised to clear it even though it was small payments but it does affect the loan amount as you can see on the calculator on the website.

It's a pain that they do not give an approved amount rather than going through the whole process again!!

Clear the finance if you can..

Evd-Burner

Shelga wrote: »

This scheme is ridiculous, unfair, and should be illegal.

Care to elaborate?

SNNUS

https://www.rte.ie/news/ireland/2018/0503/959952-first-time-buyers/

Looks like it will be extended.

Shelga

Evd-Burner wrote: »

Care to elaborate?

Why should taxpayers’ money subsidise mortgage interest rates? With an arbitrary earnings cut-off point with no basis in logic?

This does nothing to address the shortage of housing being built.

OCDee

Looks like a very low success rate for applicants outside of Dublin.

SNNUS

Shelga wrote: »

Why should taxpayers’ money subsidise mortgage interest rates? With an arbitrary earnings cut-off point with no basis in logic?

This does nothing to address the shortage of housing being built.

It does not involve tax payers money as you say..

The Housing Finance Agency (HFA) has raised €200 million from a variety of sources, on a fixed rate basis for periods out to thirty years maturity. Based on the pricing achieved, local authorities can offer a first tranche of fixed rate annuity finance to eligible borrowers at rates of 2.0% and 2.25% per annum, for twenty five and thirty years, respectively, up to an aggregate maximum of €200 million. The funding is not allocated to individual local authorities but rather will be drawn down by local authorities from the HFA to match fund their lending under the Rebuilding Ireland Home Loan.

Local authority borrowing from the HFA, that is on-lent to the borrower, is not considered spending by General Government as the borrowing is offset by the financial asset held by the local authority, i.e. the loan to the end borrower.

Shelga

SNNUS wrote: »

It does not involve tax payers money as you say..

The Housing Finance Agency (HFA) has raised €200 million from a variety of sources, on a fixed rate basis for periods out to thirty years maturity. Based on the pricing achieved, local authorities can offer a first tranche of fixed rate annuity finance to eligible borrowers at rates of 2.0% and 2.25% per annum, for twenty five and thirty years, respectively, up to an aggregate maximum of €200 million. The funding is not allocated to individual local authorities but rather will be drawn down by local authorities from the HFA to match fund their lending under the Rebuilding Ireland Home Loan.

Local authority borrowing from the HFA, that is on-lent to the borrower, is not considered spending by General Government as the borrowing is offset by the financial asset held by the local authority, i.e. the loan to the end borrower.

Why should someone on €51k end up spending approximately €70k more in interest over a 30 year mortgage period, compared to someone earning €49k, just because the government has meddled yet again?

Contrails

Shelga wrote: »

Why should someone on €51k end up spending approximately €70k more in interest over a 30 year mortgage period, compared to someone earning €49k, just because the government has meddled yet again?

What you're forgetting though is the mandatory mortgage protection policy for these loans is significantly higher than with a bank loan (as these would be considered a bit higher risk). So the savings won't be quite as large as you say there.
Also regarding the cut off, well unfortunately there just has to be one. It's like when we had our daughter in 2016 I got paid paternity leave but someone the previous month didn't. There has to be a cut off somewhere, as with anything like this really.
I'm biased myself admittedly. I am very much in favour of the scheme because it is almost tailor made for me and my wife. We have buckets of room for repayment capacity but can't borrow enough to buy a decent house in Dublin kildare or Meath.

Shelga

Contrails wrote: »

What you're forgetting though is the mandatory mortgage protection policy for these loans is significantly higher than with a bank loan (as these would be considered a bit higher risk). So the savings won't be quite as large as you say there.
Also regarding the cut off, well unfortunately there just has to be one. It's like when we had our daughter in 2016 I got paid paternity leave but someone the previous month didn't. There has to be a cut off somewhere, as with anything like this really.
I'm biased myself admittedly. I am very much in favour of the scheme because it is almost tailor made for me and my wife. We have buckets of room for repayment capacity but can't borrow enough to buy a decent house in Dublin kildare or Meath.

I’m just over the earnings eligibility threshold for a single person. Even if I wasn’t, I wouldn’t be in favour of this. The 3.5x salary rule for borrowing is there for very good reason. Otherwise we’re headed for another crash. Government interference in this drives me mental.

Wanderer78

Shelga wrote:

I’m just over the earnings eligibility threshold for a single person. Even if I wasn’t, I wouldn’t be in favour of this. The 3.5x salary rule for borrowing is there for very good reason. Otherwise we’re headed for another crash. Government interference in this drives me mental.

The only problem is, the abilities and capabilities of 'the market' to solve this problem is nothing but a figment of our imaginations

stryker mcqueen

Have any self employed folk apply? Filling out an application form now and the wife is terrible confused , I'm as much use as a chocolate kettle too

Whodat19

stryker mcqueen wrote: »

Have any self employed folk apply? Filling out an application form now and the wife is terrible confused , I'm as much use as a chocolate kettle too

What part do you want to know?

stryker mcqueen

raheny red wrote:

I presume it's for the whole country. We're applying for both Dub City and Fingal so I just asked the fella on the desk to stamp 4 forms.

OCDee wrote:

Is this included in the application form? This is the reason given for our application being turned down, but we pay rent and save every month for deposit so our outgoings are high (But higher than the 35% threshold and we have been able to afford this for the last 6 years)...Obviously if we are paying a mortgage, we wouldnt be paying rent or saving as aggressively. We must clarify this with CC, but they are saying we need to reapply, which sounds a bit daft TBH

OCDee wrote:

Looks like a very low success rate for applicants outside of Dublin.

Whodat19 wrote:

What part do you want to know?

Page 5 where it asks about drawings and income for self employed. It seems to be the only part of the application that asks for the income details of the self employed applicant but it doesn't specify which year. Presume it's last years accounts we should go by?
As part of this section it also asks about dates of other employment and it's hard to know what they mean. Is it last example of employment before one became self employed? But someone may have always been self employed which makes me think I'm interpreting it incorrectly 🀔

Whodat19

stryker mcqueen wrote: »

Page 5 where it asks about drawings and income for self employed. It seems to be the only part of the application that asks for the income details of the self employed applicant but it doesn't specify which year. Presume it's last years accounts we should go by?
As part of this section it also asks about dates of other employment and it's hard to know what they mean. Is it last example of employment before one became self employed? But someone may have always been self employed which makes me think I'm interpreting it incorrectly 🀔

We are handing in ours next week at meeting. We needed 2 years accounts so 2016 & 2017 & to apply to revenue for receipt that all are paid up to date. I assumed the last employment was if you're self employed under 2 years & you were working during this time. I'll ring them tomorrow and find out for sure.

jimmycrackcorm

Wanderer78 wrote:

The only problem is, the abilities and capabilities of 'the market' to solve this problem is nothing but a figment of our imaginations

The market is unable because of the bleeding heart of the lefties putting in so many rules and restrictions to make housing development too expensive.

The state cannot provide it either because the expectation had been set for free forever homes that we can't afford to fund.

We used to be able to provide low cost council housing, but the free loaders who turn down social housing offers aren't content until they can get what someone else, who is earning a significant salary, can.

Wanderer78

jimmycrackcorm wrote: »

The market is unable because of the bleeding heart of the lefties putting in so many rules and restrictions to make housing development too expensive.

The state cannot provide it either because the expectation had been set for free forever homes that we can't afford to fund.

We used to be able to provide low cost council housing, but the free loaders who turn down social housing offers aren't content until they can get what someone else, who is earning a significant salary, can.

rubbish, neoclassical theory is a bust, a train wreck of an economic theory

Whodat19

stryker mcqueen wrote: »

Page 5 where it asks about drawings and income for self employed. It seems to be the only part of the application that asks for the income details of the self employed applicant but it doesn't specify which year. Presume it's last years accounts we should go by?
As part of this section it also asks about dates of other employment and it's hard to know what they mean. Is it last example of employment before one became self employed? But someone may have always been self employed which makes me think I'm interpreting it incorrectly 🀔

They said if you were employed in the last 5 years as well you can pop this down in that section

The boarder

Well met with meath coco yesterday had all our paper work etc. Applied fot the amoubt we got from the website. But it does not include the mortgage protection. Turns out they have their own calculator that includes this. So no point in applying as its lower then what the bank coukd give us. I did ask him about the online calulator and f he said oh we know it doesnt give accurate data. Whole scheme is rediculus.

stryker mcqueen

The boarder wrote:

Well met with meath coco yesterday had all our paper work etc. Applied fot the amoubt we got from the website. But it does not include the mortgage protection. Turns out they have their own calculator that includes this. So no point in applying as its lower then what the bank coukd give us. I did ask him about the online calulator and f he said oh we know it doesnt give accurate data. Whole scheme is rediculus.

How much is the protection?

Darkglasses

stryker mcqueen wrote: »

How much is the protection?

.555% of your capital outstanding, divided by twelve for the monthly payment.

When judging if it's expensive or not - make yourself aware of whether you're comparing like with like policies. This is not simply life cover - it also covers your mortgage charges in the event of illness or disability for 60 days or more.

irishfeen

Hi lads and ladies, I am currently in the process of obtaining mortgage approval letters from 2 banks (both have said in local branches that I should get approved for approx 132k). Just wondering have any of you guys any tips and pitholes to avoid when I will be applying to my local Co Co for the rebuilding Ireland scheme. Few general details about my application...

- Single Applicant.
- Public Servant.
- First Time Buyer.
- Self Build on Uncles land.
- Applying for Approx 155k.
- Savings ~25k
- Gross Amount on P60 ~ 45k
- Guaranteed Wage (What Banks have taken, confirmed on Salary Cert) ~ 39.5k
- Overtime and other allowances ~ 5.5k

Any advice would be much appreciated!

ad1234

Darkglasses wrote: »

.555% of your capital outstanding, divided by twelve for the monthly payment.

When judging if it's expensive or not - make yourself aware of whether you're comparing like with like policies. This is not simply life cover - it also covers your mortgage charges in the event of illness or disability for 60 days or more.

You seemed to have got a good bit of info on it. My council wouldn't tell me a thing. We already have life cover, a very good policy at that.. do you think if they exclude that aspect ot could bring it down or would I just have to pay twice/give up the good cover we have...? None of this was explained to us

Darkglasses

ad1234 wrote: »

You seemed to have got a good bit of info on it. My council wouldn't tell me a thing. We already have life cover, a very good policy at that.. do you think if they exclude that aspect ot could bring it down or would I just have to pay twice/give up the good cover we have...? None of this was explained to us

Strictly speaking, you must take out the LA policy if you are eligible for it. Remember this policy only covers the remainder of your mortgage, nothing else, no payments to the family, etc.

OCDee

Has anyone on here actually drawn down a mortgage from this scheme yet? I know people have been approved, I'm just wondering how long it takes from approval to actually drawing down the mortgage..

Whodat19

OCDee wrote: »

Has anyone on here actually drawn down a mortgage from this scheme yet? I know people have been approved, I'm just wondering how long it takes from approval to actually drawing down the mortgage..

We applied today and the person handing in our application said they only started last week drawing down mortgages as some approved last month

SNNUS

There is a months cooling off period after acceptance of the loan, after this month the loan details will go to your solicitor for signing and drawdown of the funds would after then.

tomhouse

hi has anyone inherited land or small house and applied for this loan,

Has anyone been through this , and has it been allowed in any other counties ?

My county council have gone to check it further, as we are classed as FTB ,

Whodat19

Has anyone that's self employed applied and been accepted

Carlyd

Just want to share my expierence with this scheme.
There seems to have been very little training provided in the County Councils. Everybody you speak to has a different answer.
I applied according to the criteria set out in the requirements list.
My first attempt to sumbit:
1)My rejection letters from the bank were not " rejectful" enough. They wanted more than just how much we had been declined on, they wanted to see how much we would be eligable for.
2) Despite the checklist stating p60 OR p21 I was turned away from not having my P21.
Both easily rectified
Returned a week later
Documents accepted.
5 weeks later.
Letter stating we were not eligable for the ammount we applied for 265,000 which I got from the calculator on their website!
Infact based on their calculations we could apply for 216,000.
They asked for a Gift Letter (we were recieving gift of deposit off both of our parents to get us out of the misery that is renting)
They asked for a letter from our landlord stating our monthly rent . Despite our rent being clear in bank statements.
Provided both of these documents.
Resubmitted.
6 weeks later we recieve a rejection letter based on the following:
1)Our earnings were outside of the loan criteria (we earn a combined 47k so well within the 75k limit)
2)We have to be seen to show unbroken savings of 3% of the property price. (A criteria that is not stated anywhere!! Nor mentioned at any previous stage of communication

our rent is nearly 3/4 of our combined wage a month and we have never missed a payment. This scheme was aimed at people just like us.
Paying an incredible ammount rent due to the shambolic private rental system so unable to save a considerable ammount a month for a mortgage.
If i met the criteria they rejected me on I would have been able to get a regular mortgage.

I was so excited when this scheme was announced. Finally an intellegent solution to the housing crisis that helps those in the middle! but alas just another pile of propaganda.

Whodat19

Carlyd wrote: »

Just want to share my expierence with this scheme.
There seems to have been very little training provided in the County Councils. Everybody you speak to has a different answer.
I applied according to the criteria set out in the requirements list.
My first attempt to sumbit:
1)My rejection letters from the bank were not " rejectful" enough. They wanted more than just how much we had been declined on, they wanted to see how much we would be eligable for.
2) Despite the checklist stating p60 OR p21 I was turned away from not having my P21.
Both easily rectified
Returned a week later
Documents accepted.
5 weeks later.
Letter stating we were not eligable for the ammount we applied for 265,000 which I got from the calculator on their website!
Infact based on their calculations we could apply for 216,000.
They asked for a Gift Letter (we were recieving gift of deposit off both of our parents to get us out of the misery that is renting)
They asked for a letter from our landlord stating our monthly rent . Despite our rent being clear in bank statements.
Provided both of these documents.
Resubmitted.
6 weeks later we recieve a rejection letter based on the following:
1)Our earnings were outside of the loan criteria (we earn a combined 47k so well within the 75k limit)
2)We have to be seen to show unbroken savings of 3% of the property price. (A criteria that is not stated anywhere!! Nor mentioned at any previous stage of communication

our rent is nearly 3/4 of our combined wage a month and we have never missed a payment. This scheme was aimed at people just like us.
Paying an incredible ammount rent due to the shambolic private rental system so unable to save a considerable ammount a month for a mortgage.
If i met the criteria they rejected me on I would have been able to get a regular mortgage.

I was so excited when this scheme was announced. Finally an intellegent solution to the housing crisis that helps those in the middle! but alas just another pile of propaganda.

I'm so sorry to hear that. Can you get the 3% deposit somehow and reapply? I rang Rebuilding Ireland a few of weeks ago about gift letter and I'm so greatful the man told me we needed to have 3% minimum ourselves and can have rest as gift. We renting years and find it so hard to save with kids but luckily we had just under the 3% and saved whatever we could to get just over the 3% before applying. We luckily had all our loans paid off back in March so the extra went into savings.

The council didn't tell us half of what the Rebuilding Ireland had. You're better off contacting them directly.

Our council told us they have also introduced an appeal case so look into that too