Government Funds Local Authority Housing Scheme

SNNUS

robbo25 wrote: »

Hi, has anyone that was approved drawn down the loan yet? We just got approved and just wondering how the next stage will be. Starting our house hunt tomorrow :-)

You had a long wait? Congrats and enjoy the house hunt My solicitor is still waiting to get the official loan approval documents..

robbo25

Yep sure did! We applied at the end of Feb and rejected 8 weeks later because of two things. Appealed 5 weeks ago and just got the approval yesterday. So am I right in thinking you had an offer accepted? Sorry totally new to this process and not sure how it's going to flow. Do I engage a solicitor once we have had an offer accepted?

SNNUS

Yep once you find a house and you put down a deposit then you get a solicitor.

robbo25 wrote: »

Yep sure did! We applied at the end of Feb and rejected 8 weeks later because of two things. Appealed 5 weeks ago and just got the approval yesterday. So am I right in thinking you had an offer accepted? Sorry totally new to this process and not sure how it's going to flow. Do I engage a solicitor once we have had an offer accepted?

robbo25

SNNUS wrote: »

Yep once you find a house and you put down a deposit then you get a solicitor.

Thanks, hope you get sorted. Any idea when you can move in?

SNNUS

robbo25 wrote: »

Thanks, hope you get sorted. Any idea when you can move in?

Hopefully the end of July or Early August but it's a new build so nearly there and it suited the slow progress of the loan application !

bri007

Congrats on getting loan approval.

Can I ask, how long were u waiting on a reply back from when you made the application?

Sorry scrap that I didn't read further back where you said how long you were waiting!

I didn't know you can appeal the decision, that's good to know!

robbo25 wrote: »

Hi, has anyone that was approved drawn down the loan yet? We just got approved and just wondering how the next stage will be. Starting our house hunt tomorrow :-)

metricspaces

robbo25 wrote: »

Yep sure did! We applied at the end of Feb and rejected 8 weeks later because of two things. Appealed 5 weeks ago and just got the approval yesterday. So am I right in thinking you had an offer accepted? Sorry totally new to this process and not sure how it's going to flow. Do I engage a solicitor once we have had an offer accepted?

Great news that you got approved. I'm curious about rejections so I can try avoid in initial application if you don't mind sharing the info that would be really helpful.

What did your original application get rejected on? Was it a total rejection or they just offered you a lower amount than you applied for?

What in your appeal changed it from a rejection to success?

robbo25

metricspaces wrote: »

Great news that you got approved. I'm curious about rejections so I can try avoid in initial application if you don't mind sharing the info that would be really helpful.

What did your original application get rejected on? Was it a total rejection or they just offered you a lower amount than you applied for?

What in your appeal changed it from a rejection to success?

We were rejected because I didn't show where my deposit originally came from. it was a redundancy payment so just sent them in the letter from my old employer detailing the amount. The other point was they said amount we wanted was outwith their lending criteria. I received a pay rise after our initial application and changed our tax credits to increase our net salary and argued that the mortgage plus the mpi was still less than the rent we pay. Good luck

robbo25

SNNUS wrote: »

Hopefully the end of July or Early August but it's a new build so nearly there and it suited the slow progress of the loan application !

One more question if you don't mind - at what stage did you fill in the MPI form?

metricspaces

robbo25 wrote: »

The other point was they said amount we wanted was outwith their lending criteria. I received a pay rise after our initial application and changed our tax credits to increase our net salary and argued that the mortgage plus the mpi was still less than the rent we pay. Good luck

Thanks for that info. I presume if they didn't reject your application based on your first point that they would have made you an offer for less than you asked and then given the above as explanation of why you didn't get what you asked for?

It sounds like the application was rejected on just one point, where your savings came from, rather than two point?

SNNUS

robbo25 wrote: »

One more question if you don't mind - at what stage did you fill in the MPI form?

Not done that yet... Maybe If I say I drink 20 pints a day and smoke 50 ciggies they will refuse me and I can get my own MPI :P

triple nipple

SNNUS wrote:

Not done that yet... Maybe If I say I drink 20 pints a day and smoke 50 ciggies they will refuse me and I can get my own MPI

On a serious note, keep me updated. I would love to know if that works.

OCDee

Hey, What is an MPI form?

SNNUS

OCDee wrote: »

Hey, What is an MPI form?

The group mortgage protection insurance form that is sent out with the other loan documents.

metricspaces

https://www.independent.ie/irish-news/politics/half-of-firsttime-buyer-home-loans-are-being-refused-37020817.html

52% chance of being approved if your application is valid...

autumnbelle

How much does the MPI work out at? Why is it so much higher then others?

OCDee

metricspaces wrote: »

https://www.independent.ie/irish-news/politics/half-of-firsttime-buyer-home-loans-are-being-refused-37020817.html

52% chance of being approved if your application is valid...

This was quoted on The Tonight Show on TV3 last night. "Only 5 loans have been drawn down nationwide" so far?

Is this scheme just a pipe dream / waste of time?

stryker mcqueen

Worth bearing in mind that people who have gotten approval then have to find a property , so with the average waiting time is 10 weeks and then add longer onto that to find the property, the scheme is only active since February so i wouldn't write it off just yet!

metricspaces

OCDee wrote: »

metricspaces wrote: »

https://www.independent.ie/irish-news/politics/half-of-firsttime-buyer-home-loans-are-being-refused-37020817.html

52% chance of being approved if your application is valid...

This was quoted on The Tonight Show on TV3 last night. "Only 5 loans have been drawn down nationwide" so far?

Is this scheme just a pipe dream / waste of time?

Apparently it is taking at least 10 weeks to get a response in Fingal. Considering they have only 1500 applications nationwide so far this seems a little crazy.

OCDee

We put a property in our application form that has since sold due to the length of time that has passed during application. Do you think it is still possible for us to get an offer of a loan so we can find a new property?

Ailbag

Most people aren't specifying a property in their applications as it takes so long for them to come through. I got approval last Thursday after just under 10 weeks; it should speed up a little now though as they are having weekly credit committee meetings, as opposed to fortnightly ones.

metricspaces

OCDee wrote: »

Do you think it is still possible for us to get an offer of a loan so we can find a new property?

Yes you can use it on another property once the property price falls within the criteria of the scheme.

It sounds like it's turned into a bit of a farce at the moment with people expected to wait almost three months for a reply. Typical governmental department approach - launch a scheme without the systems and resources in place to deal with it, turning what should be a simple process into a long drawn out frustrating one.

ad1234

https://www.facebook.com/Reform-The-Rebuilding-Ireland-Home-Loan-474723336317593/

Darkglasses

stryker mcqueen wrote: »

Worth bearing in mind that people who have gotten approval then have to find a property , so with the average waiting time is 10 weeks and then add longer onto that to find the property, the scheme is only active since February so i wouldn't write it off just yet!

Bingo. It's a nonsense article.

rachieqtpie

triple nipple wrote: »

On a serious note, keep me updated. I would love to know if that works.

We have done the mpi form, we then both had to do a telesales call over form going through your health. We were unsure if we would qualify as partner had a heart condition that has since been rectified. We got notification on Monday we we approved.

We do know of someone who got refused and sourced their own for €30 a month so a massive saving if you were to be refused..... just saying!

SNNUS

rachieqtpie wrote: »

We have done the mpi form, we then both had to do a telesales call over form going through your health. We were unsure if we would qualify as partner had a heart condition that has since been rectified. We got notification on Monday we we approved.

We do know of someone who got refused and sourced their own for €30 a month so a massive saving if you were to be refused..... just saying!

I have an allergy to overpriced insurance

metricspaces

rachieqtpie wrote: »

.

We do know of someone who got refused and sourced their own for €30 a month so a massive saving if you were to be refused..... just saying!

That's strange as they clearly state that their MPI must be taken and the Minister answered this very question also i.e. if you don't take/qualify for their MPI then no mortgage.

metricspaces

metricspaces wrote: »

That's strange as they clearly state that their MPI must be taken and the Minister answered this very question also i.e. if you don't take/qualify for their MPI then no mortgage.

Apologies I stand corrected. See here
https://www.oireachtas.ie/en/debates/question/2018-02-20/596/


"One of the conditions of the scheme, which is a group policy, is that it is obligatory for all local authority borrowers who meet the eligibility criteria to join the scheme. Altering this condition would have a negative impact on the scheme and increase the cost for all existing borrowers. The group policy is a commercial insurance product which is procured in accordance with EU procurement rules. A local authority housing loan applicant who is not eligible for the local authority MPI scheme must source a suitable comparable individual MPI policy from the market."

It would seem strange though if someone sourced a "comparable" insurance product for a fraction of the cost.

raheny red

A small update just to give people an idea of the time frame. We applied with Fingal and DCC on 28/05/18 - Today a letter dated 13/06/18 arrived from Fingal. The letter states that it is now with the housing agency for assessment and recommendation. Nothing from DCC as of yet.

bri007

Did you just post the application into fingal and DCC or did you go in first and meet with each council and go through the application with them?

raheny red wrote: »

A small update just to give people an idea of the time frame. We applied with Fingal and DCC on 28/05/18 - Today a letter dated 13/06/18 arrived from Fingal. The letter states that it is now with the housing agency for assessment and recommendation. Nothing from DCC as of yet.