Getting a mortgage from County Council

rumar

Has anyone here any experience of getting a mortgage from a local authority? We have been turned down with 2 banks due to issues with our site which we have full planning permission for so now we are looking at getting a mortgage with our local county council. Not much info online so can anyone tell me what their interest rates are compared to a bank? Any input from people who have got a mortgage this way would be appreciated.

ted1

rumar wrote: »

Has anyone here any experience of getting a mortgage from a local authority? We have been turned down with 2 banks due to issues with our site which we have full planning permission for so now we are looking at getting a mortgage with our local county council. Not much info online so can anyone tell me what their interest rates are compared to a bank? Any input from people who have got a mortgage this way would be appreciated.

Can the issues be resolved?

rumar

ted1 wrote: »

Can the issues be resolved?

We are in the process of getting the issues resolved which are issues with the naming of the lane into the site etc but we are hoping the Council wont prove so problematic with this as they gave us the planning permission

sparkynash

I wanted a council morgage but the bank didn't turn me down in fact they offered me more money than id like to borrow,i know ppl who asked the banks to turn them down just so they could go to the council.i would assume the council would go back to the bank that turned you down and ask the reasons why you were refused

Trish56

OP... You might qualify under the Home Choice Loan - see attached.
http://www.homechoiceloan.ie/How-does-it-work-.aspx

rumar wrote: »

Has anyone here any experience of getting a mortgage from a local authority? We have been turned down with 2 banks due to issues with our site which we have full planning permission for so now we are looking at getting a mortgage with our local county council. Not much info online so can anyone tell me what their interest rates are compared to a bank? Any input from people who have got a mortgage this way would be appreciated.

elleWhcim

How do you apply for a council mortgage!? I have been refused a mortgage twice because I missed a few payments on a credit card a few years ago. I paid off the credit card a few years ago and have no other loans, I am single and working in a full time permanent job on 28000 a year, I have 75,000 to put towards a house and The house I am looking to buy is 120,000, So I need a very small mortgage. anybody any ideas where I could go from here?

Johngoose

The banks will look at your accounts for previous six months when you apply for mortgage.I recon you should be more than fine for a mortgage from a bank at the moment,with that large deposit you have.I went to an auctioneer who is meant to deal with "Home Choice Loans," only two months ago.Very weird experience,he said they haven't given out such a mortgage for three years in Cork.I had your high hopes too,when I say the website.To be honest it seems mad that they have this website is still up,don't think anybody can get these mortgages.Myself and my partner felt like we were Ross Kemp trying to find out about local "hoods."No forthcoming information from anybody about this loan.

Eldarion

elleWhcim wrote: »

How do you apply for a council mortgage!? I have been refused a mortgage twice because I missed a few payments on a credit card a few years ago. I paid off the credit card a few years ago and have no other loans, I am single and working in a full time permanent job on 28000 a year, I have 75,000 to put towards a house and The house I am looking to buy is 120,000, So I need a very small mortgage. anybody any ideas where I could go from here?

Something not right here. You're saying you were denied a mortgage due to a few missed credit card payments with a proposed loan of €45,000 and LTV ratio of 37.5%...

You're leaving something out because that is a REALLY easy sell to a bank.

elleWhcim

I tried with two different banks to get a mortgage and on both occasions I was turned down because of my credit rating because of that god damn credit card, I only had a credit card of 1000 Euros an its paid off over two years ago and Ive had a car on finance and 3 or 4 loans with the credit union which were paid off early and I never missed a single payment. Im feeling a bit defeated at the minute... Not sure where to go or just admit defeat...

elleWhcim

@eldarion That was the basis of my refusal from both banks?? My parents are helping with the deposit and said they would sign a gift receipt for the money to show they would never ask for it back.. I am well able to afford the repayments as I am paying rent at the minute and my mortgage repayments would be less than I am paying now... HELP!

Johngoose

Most of the Cork "agents" listed for these loans on the website,didn't know what I was talking about when I rang them up.Other numbers given didn't even work.Very strange sh1t,only in Ireland!:-)

Eldarion

elleWhcim wrote: »

@eldarion My parents are helping with the deposit and said they would sign a gift receipt for the money to show they would never ask for it back.. I am well able to afford the repayments as I am paying rent at the minute and my mortgage repayments would be less than I am paying now... HELP!

Ah, that makes it different. I had assumed you had saved the 75k on your own. Receiving a lump sum as a gift doesn't help your application nearly as much as proof of dedicated savings would.

Honestly, at the numbers you're dealing with and what your parents are providing you could almost go without a mortgage. There are alternative means of financing if like you say you have currently 0 outstanding debts, combined possibly with your parents going a little bigger on a gift and getting a short term loan on your behalf combined with a loan on your own. Credit unions lend out at ~5% these days which isn't much above what the current mortgage rates are.

elleWhcim

I have emailed the bank this morning asking for a detailed reason in writing why exactly I was refused as I cannot see how missed card payments on a card i no longer have could affect a mortgage of 45,000 when i have a deposit of 75,000, a mortgage would be cheaper than what I am currently paying in rent at the minute.. seems like a no brainer to me!!

elleWhcim

So you think because my parents gave me the money that is why they declined my application?! I would need 45000 of a loan to get this house?

The_Morrigan

elleWhcim wrote: »

So you think because my parents gave me the money that is why they declined my application?! I would need 45000 of a loan to get this house?

Did you parents give you the full 75K or do you have a history of your own savings?
Also, factor in that you may need part of the 75k to pay purchase costs, furnishings, upgrade to decoration if required, so that may not be completely available to you.

elleWhcim

They gave me 73 and I had two thousand saved myself. I had a loan last year with the credit union and payed it off early so thats why my savings are small. I have no other loans. House doesnt need anything done to it, its brand new and has furnishings in it and I have furniture etc in my rental house that is mine.

The_Morrigan

elleWhcim wrote: »

They gave me 73 and I had two thousand saved myself. I had a loan last year with the credit union and payed it off early so thats why my savings are small. I have no other loans. House doesnt need anything done to it, its brand new and has furnishings in it and I have furniture etc in my rental house that is mine.

That's another factor than, they like to see a chunk of savings from you over a substantial amount of time and 2K is not substantial. People will always have loans and credit card debt that crops up from time to time, you still have to be able to save for that inevitable rainy day.

Also, the mortgage vs rent argument is not comparable anymore. Homeowners have a substantially higher level of obligations to adhere to, so you may need to revisit your monthly cash flow with regards to this, your level of disposable income is crucial in the application process.

elleWhcim

I am saving 250 a month and paying 325 in rent at the minute. Il try a different route and see how I get on.. hopefully Im not at a dead end!

The_Morrigan

elleWhcim wrote: »

I am saving 250 a month and paying 325 in rent at the minute. Il try a different route and see how I get on.. hopefully Im not at a dead end!

That isn't whole lot.

Now consider:
Mortgage
House Insurance
Life Insurance
Payment Protection against the mortgage
Property Tax
Water Charges
Utility bills (Gas, Electric, Bins, TV/Broadband/Phone)
Tv Licence/Broadcasting charge
Annual fees for services (Boiler for example, property maintenance)
Squirrel fund for emergencies (burst pipes, appliance breakdown)
And that's before you consider day to day expenses like food, mobile phone, entertainment, car tax & insurance & running costs.

There is a lot of outgoings that people forget about when they go to buy a house - does your income allow for these sorts of expenses, a potential increase in your mortgage rate & taxes, and to continue saving?

sparkynash

I cant believe you took 73k off your parents.I would be ashamed of myself.

The_Morrigan

sparkynash wrote: »

I cant believe you took 73k off your parents.I would be ashamed of myself.

There is no need for comments like this.

elleWhcim

I have looked into my ingoings and outgoings and it seems I can afford it, Im going into a different bank on monday to have a chat to see what I can do.

@sparkynash.. I inherited the money it was given to me by my parents from a house they sold, House was divided between me and my siblings.. keep your smart comments to yourself thanks!!

The_Morrigan

elleWhcim wrote: »

I have looked into my ingoings and outgoings and it seems I can afford it, Im going into a different bank on monday to have a chat to see what I can do.

@sparkynash.. I inherited the money it was given to me by my parents from a house they sold, House was divided between me and my siblings.. keep your smart comments to yourself thanks!!

If you've a problem with a post, report it and leave it to the mods to sort out - taking matters into your own hands may result in you receiving an infraction for breach of the forum charter.

elleWhcim

Whoops sorry! :O

Kelly06

What local authority is it?

Mrs OBumble

elleWhcim wrote: »

@sparkynash.. I inherited the money it was given to me by my parents from a house they sold, House was divided between me and my siblings.. keep your smart comments to yourself thanks!!

So your parents aren't dead, but they interited a house and then split the proceeds among the kids.

I hope the appropriate tax was paid ... http://www.revenue.ie/en/tax/cat/index.html

The_Morrigan

Mrs OBumble wrote: »

So your parents aren't dead, but they interited a house and then split the proceeds among the kids.

I hope the appropriate tax was paid ... http://www.revenue.ie/en/tax/cat/index.html

What tax? The amount the OP received is well below the threshold.

Mrs OBumble

Yeah, but depending on the number of kids, the amount the parents received may not have been. And it sounds like there was both inheritance and gifting going on. Could be messy .. and hard to get a mortgage / tax-clearance if it's not all 100% above board.

dar100

Mrs OBumble wrote: »

So your parents aren't dead, but they interited a house and then split the proceeds among the kids.

I hope the appropriate tax was paid ... http://www.revenue.ie/en/tax/cat/index.html

It's really none of your business if he paid tax on his money

Mrs OBumble

dar100 wrote: »

It's really none of your business if he paid tax on his money

Agreed.

But I did not ask "did you pay tax". I said "I hope the appropriate tax was paid".

This is a highly relevant point, since it is likely that the CC will ask for a tax clearance certificate.

The_Morrigan

Folks can we get back on topic there please?

elleWhcim

Got my Mortgage! yay! Went back to my own bank and had a chat with them. Approved in 3 days!

Kelly06

elleWhcim wrote: »

Got my Mortgage! yay! Went back to my own bank and had a chat with them. Approved in 3 days!

Well done !