Rebuilding Ireland home loan

swarmberg

The central bank has given its thoughts on the scheme going forward.


https://www.rte.ie/news/ireland/2019/0404/1040566-home-loan-scheme/

RTÉ News has learned that the Central Bank Governor Philip Lane said the assessment concluded that given the scale and scope of the loan scheme "it is not immediately apparent that material financial stability concerns arise across borrower resilience, credit risk and the financing of the scheme."

Details of the assessment, contained in a letter to Fianna Fáil's Finance spokesperson Michael McGrath, said the number of loans offered under the scheme last year was equivalent to 3% of first-time buyer loans issued by regulated lenders.

Mr Lane said while lending under the scheme is added to the national debt, at €200m it amounts to 0.001% of that debt.

The key quote from the piece

Therefore any change to the scheme that would involve more than 20% of lending being above the 3.5 loan to income ratio would "warrant serious consideration from a financial stability perspective."

Looks like the scheme will continue but a lot less people will be given a loan in excess of 3.5 times earnings.

Evenstevens

swarmberg wrote: »

The central bank has given its thoughts on the scheme going forward.


https://www.rte.ie/news/ireland/2019/0404/1040566-home-loan-scheme/




The key quote from the piece



Looks like the scheme will continue but a lot less people will be given a loan in excess of 3.5 times earnings.

One of the things that irritates me lately is when they report on the Rebuilding scheme on the radio/tv they say it's for people who don't qualify for mortgages. Like people have bad credit or they are too risky to give mortgages to. I qualified for a mortgage from several banks but the amount is so low and house prices are so ridiculous that I'd never afford anything without this scheme.

Jmk725

Evenstevens wrote: »

One of the things that irritates me lately is when they report on the Rebuilding scheme on the radio/tv they say it's for people who don't qualify for mortgages. Like people have bad credit or they are too risky to give mortgages to. I qualified for a mortgage from several banks but the amount is so low and house prices are so ridiculous that I'd never afford anything without this scheme.

Exactly, it is for people who do not earn enough to get a sufficient loan from a bank.
I can't wait until mine is all finished up, all this constant worry and stress over the mortgage.

Milenauno

Jmk725 wrote: »

Then it just depends on council and their solicitor.
Keep hounding them, find out when solicitor has requested funds and contact the council to see when they are issuing the funds.
Get date in writing as they have been known to change their dates.
Keep the pressure on them to get the funds.
Best of luck, currently have all contracts signed myself and hoping to be in before May too

Have you been asked to bring up to date bank accounts and payslips before actually giving out the mortgage, once all contracts are signed?

Jmk725

Milenauno wrote: »

Have you been asked to bring up to date bank accounts and payslips before actually giving out the mortgage, once all contracts are signed?

I had to give up to date payslips and bank statements when I went sale agreed and provided council with details of property and amount of mortgage required.
Currently waiting on funds and haven't been asked for them again yet anyway.

Milenauno

Hi there, we applied for the home loan with Dublin City Council ( still waiting) and I just found out that the mortgage protection insurance might be a problem. My husband is under medications and he wont be eligible. Now, my question is: do you know if we can proceed with only one borrower eligible or not and what other options we might have. is that possible that we wont be able to proceed with rebuilding Ireland because of that? Thanks!

Jmk725

Milenauno wrote: »

Hi there, we applied for the home loan with Dublin City Council ( still waiting) and I just found out that the mortgage protection insurance might be a problem. My husband is under medications and he wont be eligible. Now, my question is: do you know if we can proceed with only one borrower eligible or not and what other options we might have. is that possible that we wont be able to proceed with rebuilding Ireland because of that? Thanks!

I believe, I am not certain, that if you cannot get the councils MPI that you are allowed to obtain your own.
Might be best to contact someone in the council to see what they say, or message someone on the rebuilding ireland website chat.
Best of luck.

swarmberg

Jmk725 wrote: »

I believe, I am not certain, that if you cannot get the councils MPI that you are allowed to obtain your own.
Might be best to contact someone in the council to see what they say, or message someone on the rebuilding ireland website chat.
Best of luck.

Yeah that is correct you can get your own cover but it must have all the benefits of the council group scheme which will end up expensive.

What type of condition did they turn you down over?

holliehobbie

swarmberg wrote: »

Yeah that is correct you can get your own cover but it must have all the benefits of the council group scheme which will end up expensive.

What type of condition did they turn you down over?

The mpi may end up expensive but the interest rates are very low!

Milenauno

swarmberg wrote: »

Yeah that is correct you can get your own cover but it must have all the benefits of the council group scheme which will end up expensive.

What type of condition did they turn you down over?

There are 2 conditions, one from years ago, a mental health episode in teenage period and acctual diabetes type 2.
we haven’t been refused officially yet, will have to bring letters form gp and other documents but the situation doesn’t seem to be very promising.
Do you know what would be the the monthly cost of that insurance anyway?

SNNUS

Milenauno wrote: »

There are 2 conditions, one from years ago, a mental health episode in teenage period and acctual diabetes type 2.
we haven’t been refused officially yet, will have to bring letters form gp and other documents but the situation doesn’t seem to be very promising.
Do you know what would be the the monthly cost of that insurance anyway?

Will be better to have the opportunity to source your own MPI.

Milenauno

SNNUS wrote: »

Will be better to have the opportunity to source your own MPI.

Do you know what’s the cost of that city council MPI?

SNNUS

Milenauno wrote: »

Do you know what’s the cost of that city council MPI?

It’s about 10% of your mortgage monthly payment so get quotes for your own based on your details you provided to the council.

Milenauno

SNNUS wrote: »

It’s about 10% of your mortgage monthly payment so get quotes for your own based on your details you provided to the council.

Thank you! So let’s say they calculated my monthly repayment 1000 euro. So 10% would be 100 . Considering that we are two borrowers, would that be 100 each or 100 in total?

swarmberg

Milenauno wrote: »

Thank you! So let’s say they calculated my monthly repayment 1000 euro. So 10% would be 100 . Considering that we are two borrowers, would that be 100 each or 100 in total?

To work out the MPI at the start of your rebuilding Ireland loan you multiply the loan amount by 0.55% and divide by 12 to get the monthly amount. The max loan of 288,000 * 0.0055/12 = 132 per month. That includes both of you (not 132 each)

BKWDR

Milenauno wrote: »

Thank you! So let’s say they calculated my monthly repayment 1000 euro. So 10% would be 100 . Considering that we are two borrowers, would that be 100 each or 100 in total?

100 in total.

But if one of you are accepted for the council scheme you have to pay the 100e AND source your own if other isn't accepted.

Also some councils won't let you borrow at all if you don't qualify for their scheme

holliehobbie

Would they really not give insurance if someone had non insulin dependent diabetes? Cause a lot of people in Ireland have it and a lot are undiagnosed as well.

Milenauno

holliehobbie wrote: »

Would they really not give insurance if someone had non insulin dependent diabetes? Cause a lot of people in Ireland have it and a lot are undiagnosed as well.

They said that they need letter from gp and history of illness. If we get refused I’ll post it here.

Evenstevens

Just a question for anyone who has successfully purchased a property and is with Dublin CC

Could you just outline what your steps were once you had gone sale agreed with the vendor? At what stage did you advise the county council of your solicitors details etc? I'm a bit confused. My solicitor sent me steps to be followed which involved advising the loan provider of my solicitors details initially but I rang DCC and they advised the next step with them was for me to call into them with all the items off Form 3 (valuation survey, letter from GP, HR etc). He didn't mention advising solicitors dtails etc. So is it between my solicitor and the estate agent initially and then back to the CC?

Also , does the valuation survey have to be done by a separate estate agent to the one selling the house? DCC didn't seem to really know when I asked.

Quinnciara

Evenstevens wrote: »

Just a question for anyone who has successfully purchased a property and is with Dublin CC

Could you just outline what your steps were once you had gone sale agreed with the vendor? At what stage did you advise the county council of your solicitors details etc? I'm a bit confused. My solicitor sent me steps to be followed which involved advising the loan provider of my solicitors details initially but I rang DCC and they advised the next step with them was for me to call into them with all the items off Form 3 (valuation survey, letter from GP, HR etc). He didn't mention advising solicitors dtails etc. So is it between my solicitor and the estate agent initially and then back to the CC?

Also , does the valuation survey have to be done by a separate estate agent to the one selling the house? DCC didn't seem to really know when I asked.

When you got your loan offer in the post with forms attached was there not a section on the form that asks for solicitor details ?

I'm with dublin city council I got a separate agent to do my survey and valuation

Evenstevens

Quinnciara wrote: »

When you got your loan offer in the post with forms attached was there not a section on the form that asks for solicitor details ?

I'm with dublin city council I got a separate agent to do my survey and valuation

Yes the form 3 asks for those details but there is a whole checklist of stuff that seems to have to be submitted along with that form-survey, HR letter etc so I can't really submit the form until I have all of that stuff I think. I've emailed them anyway to say I'm hoping to draw down. My loan approval is til the end of May and I'm just conscious of time.

Quinnciara

Evenstevens wrote: »

Yes the form 3 asks for those details but there is a whole checklist of stuff that seems to have to be submitted along with that form-survey, HR letter etc so I can't really submit the form until I have all of that stuff I think. I've emailed them anyway to say I'm hoping to draw down. My loan approval is til the end of May and I'm just conscious of time.

I know what you mean, when I went sale agreed I had to give everything with the forms, took me a few weeks to gather it all. But they were strict on having them, after I submitted the forms I waited about 3 weeks for the official loan pack to be sent to my solicitor, that came last Wednesday and I signed the contracts and sent over the 10% deposit on the Thursday, it's a very long waiting game.

Evenstevens

Quinnciara wrote: »

I know what you mean, when I went sale agreed I had to give everything with the forms, took me a few weeks to gather it all. But they were strict on having them, after I submitted the forms I waited about 3 weeks for the official loan pack to be sent to my solicitor, that came last Wednesday and I signed the contracts and sent over the 10% deposit on the Thursday, it's a very long waiting game.

Ok good to know that. I'll get going on organising surveyors.Did you fill in the back of the MPI booklet as your MPI application as such? I didn't receive a separate application form for that.
So it sounds like your solicitor only really become involved at the point of getting the loan pack or did they liaise with the estate agent also?
Sorry for picking your brain!

Quinnciara

Evenstevens wrote: »

Ok good to know that. I'll get going on organising surveyors.Did you fill in the back of the MPI booklet as your MPI application as such? I didn't receive a separate application form for that.
So it sounds like your solicitor only really become involved at the point of getting the loan pack or did they liaise with the estate agent also?
Sorry for picking your brain!

Not at all ask away !! Yeah do I just got a visual survey and valuation from same person. Yeah I did fill it out but had to refill it when I went in as I signed on the wrong place so read it carefully when signing it. No my estate agent had no contact with the solicitor really just the vendors solicitor and mine. I had been in contact with him throughout as the vendors sent over the contracts very quickly.

swalsh86

Just another update folks. Our application will have been seen by the Cork City Council credit committee 2 weeks on Friday. I've rang and been told they would have had something in the post to us last week which never happened. I'm genuinely fed up with the whole thing now at this stage as it's been going on 7 months. Is there a complaints process with this scheme???

Stekell

Has anyone had any issues with the HPL1 Revenue Form signed off? Can a family member bring it in on your behalf?

Jmk725

Stekell wrote: »

Has anyone had any issues with the HPL1 Revenue Form signed off? Can a family member bring it in on your behalf?

I posted mine to my local office and they posted it back signed.

Stekell

Jmk725 wrote: »

I posted mine to my local office and they posted it back signed.

Did that take long? We are in for meetings with Fingal and DCC next Wednesday.

Jmk725

Stekell wrote: »

Did that take long? We are in for meetings with Fingal and DCC next Wednesday.

Nope, less than a week.
I rang them first to see what to do and they told me to post it to them, Monaghan, and they had it back to me within a few days.

swarmberg

Stekell wrote: »

Did that take long? We are in for meetings with Fingal and DCC next Wednesday.

Just go into the revenue office on Cathedral street and they will stamp on the spot.