[Article] BoI enters affordable housing market

Victor

http://www.rte.ie/business/2005/0404/boi.html

BoI enters affordable housing market

April 04, 2005 15:41
Bank of Ireland has become the first private lender to enter the mortgage market for Affordable or Local Authority Housing.

The mortgage product is called 'Breakthrough' and offers customers loans of up to 97% on their houses. Qualifying customers for a 'Breakthrough' mortgage will only have to provide a 3% deposit on their house compared to the 8% normally required from first time buyers.

The bank announced its intention to enter this market last November and has now completed the development of the product in consultation with the Department of the Environment, Heritage and Local Government and the relevant local authorities.

The bank anticipates that 11,000 affordable homes will become available to home buyers over the next two to three years. Sole borrowers can borrow up to five times their income, and joint borrowers up to four and a half times their combined income, subject to the normal lending terms and conditions.

If the buyer sells the property within 20 years, they will have to pay the Local Authority a percentage of the sale proceeds as a clawback.

Anyone applying for a Breakthrough mortgage must have been allocated a property by their Local Authority. They must also have been issued with a 'Confirmation to Lender' certificate from the Local Authority.

msscarlet

Thats great if you actually get made an offer of affordable housing. I've been waiting since last August. Haven't heard anything!