Government Funds Local Authority Housing Scheme

autumnbelle

metricspaces wrote: »

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.

Does the MPI cover loss of job I wonder

autumnbelle

In most cases, the lender is legally required under Section 126 of the Consumer Credit Act 1995 to make sure that you have mortgage protection insurance before giving you a mortgage, with some exceptions – see ‘Exceptions to legal requirement’ below. However, if the lender offers a particular policy, you are not required to buy it. You can shop around for a mortgage protection policy that suits your needs. Your lender cannot refuse you a mortgage because you don't buy the policy it offers.

http://www.citizensinformation.ie/en/housing/owning_a_home/buying_a_home/mortgage_protection.html

Mark Hamill

I was told when applying for mine that I had to take the one offered by the council, I didn't have a choice. This is why the amount I was ultimately offered was less than what the calculator on the website initially said I could get - the website doesn't take account of what they charge for MPI.

metricspaces link to the oireachtas questions and answers says two things:
"Where a lender offers a particular policy, sub-section 2(d) of section 126 of the Act provides that the borrower can source an alternative policy to suit their needs. However, subsection 2(d) does not apply to local authorities."
and
"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 seems to me that this means you must take the Local Authority MPI, if you are eligible for it. You can't choose to reject it, but if they reject you then you can find your own.

Darkglasses

autumnbelle wrote: »

Does the MPI cover loss of job I wonder

It does not - it only covers death or being out of work due to disability.

raheny red

bri007 wrote: »

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?

We met with them on the same day.

autumnbelle

Mark Hamill wrote: »

I was told when applying for mine that I had to take the one offered by the council, I didn't have a choice. This is why the amount I was ultimately offered was less than what the calculator on the website initially said I could get - the website doesn't take account of what they charge for MPI.

metricspaces link to the oireachtas questions and answers says two things:
"Where a lender offers a particular policy, sub-section 2(d) of section 126 of the Act provides that the borrower can source an alternative policy to suit their needs. However, subsection 2(d) does not apply to local authorities."
and
"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 seems to me that this means you must take the Local Authority MPI, if you are eligible for it. You can't choose to reject it, but if they reject you then you can find your own.

How much does it work out at a month? I asked them on the helpline and they said they will give the figure if your approved but I would like to know if its much extra on top of say a €200k mortgage monthly

SNNUS

The bones of €100 per month

autumnbelle wrote: »

How much does it work out at a month? I asked them on the helpline and they said they will give the figure if your approved but I would like to know if its much extra on top of say a €200k mortgage monthly

rachieqtpie

autumnbelle wrote: »

How much does it work out at a month? I asked them on the helpline and they said they will give the figure if your approved but I would like to know if its much extra on top of say a €200k mortgage monthly

Ours is 120 based on a 250k mortgage

rachieqtpie

autumnbelle wrote: »

In most cases, the lender is legally required under Section 126 of the Consumer Credit Act 1995 to make sure that you have mortgage protection insurance before giving you a mortgage, with some exceptions – see ‘Exceptions to legal requirement’ below. However, if the lender offers a particular policy, you are not required to buy it. You can shop around for a mortgage protection policy that suits your needs. Your lender cannot refuse you a mortgage because you don't buy the policy it offers.

http://www.citizensinformation.ie/en/housing/owning_a_home/buying_a_home/mortgage_protection.html

Our solicitor has advised we could challenge them on it...but wait until the mortgage has been drawen down!

autumnbelle

rachieqtpie wrote: »

Ours is 120 based on a 250k mortgage

Does it come down as you repay

rachieqtpie

autumnbelle wrote: »

Does it come down as you repay

Yes

Darkglasses

autumnbelle wrote: »

How much does it work out at a month? I asked them on the helpline and they said they will give the figure if your approved but I would like to know if its much extra on top of say a €200k mortgage monthly

92.50, reducing each year thereafter. MPI is calculated as 0.555% of the capital outstanding divided by 12 for the monthly premium.

Mark Hamill

autumnbelle wrote: »

How much does it work out at a month? I asked them on the helpline and they said they will give the figure if your approved but I would like to know if its much extra on top of say a €200k mortgage monthly

Mine was quoted as ~€74 for €160k mortgage.

autumnbelle

Mark Hamill wrote: »

Mine was quoted as ~€74 for €160k mortgage.

Mark what were the mortgage repayments on that amount thanks

Mark Hamill

autumnbelle wrote: »

Mark what were the mortgage repayments on that amount thanks

The mortgage repayment is €600 (€675 including the MPI)

leinster02

Hi all.Just heard that we have been approved for almost 30 grand less than we applied for.Lady on phone said that it was because they considered we did not have enough finance to take care of solicitors...have since saved approx 7 grand more since we applied over 10 weeks ago.Anyone here had any luck appealing the amount ?Thanks for responses in advance.

autumnbelle

leinster02 wrote: »

Hi all.Just heard that we have been approved for almost 30 grand less than we applied for.Lady on phone said that it was because they considered we did not have enough finance to take care of solicitors...have since saved approx 7 grand more since we applied over 10 weeks ago.Anyone here had any luck appealing the amount ?Thanks for responses in advance.

Id say you could definitely appeal it

stryker mcqueen

We have applied to Dublin city council , fingal and South Dublin , DCC and fingal were an absolute pleasure to deal with , South Dublin made it difficult to even apply but we got there in the end......

Application to SDCC went in 5 weeks ago and we have just received a letter of rejection , they claim this went to external underwriters but I am highly doubtful as our other applications went in 3 weeks earlier and we've heard nothing so far .

Reasons given

1.
2 years self employed audited accounts incomplete (my wife is 3 weeks short but is now into year 3 of being self employed)

2.
Business revenue details not signed on application form (this makes no sense to either of us)

3.
Original Bank statement must be supplied , internet statements cannot be accepted (I bank with online bank N26 so this is not possible )

A bit dejected but I am hopeful that this is more down to this particular council and their backwards system rather than our application , the above rejection reasons seem ridiculous so I refuse to believe the application ever went to external underwriters and this was an internal decision.

Of course we rang them and they told us they have no input , there is a serious Gap in communication with this scheme unfortunately.

Anyway haven't heard from Dublin city yet but now 8 weeks since applying so hopefully hearing something in the next couple of weeks.



Apologies for the rant , just a little pissed off

OCDee

stryker mcqueen wrote: »

We have applied to Dublin city council , fingal and South Dublin , DCC and fingal were an absolute pleasure to deal with , South Dublin made it difficult to even apply but we got there in the end......

Application to SDCC went in 5 weeks ago and we have just received a letter of rejection , they claim this went to external underwriters but I am highly doubtful as our other applications went in 3 weeks earlier and we've heard nothing so far .

Reasons given

1.
2 years self employed audited accounts incomplete (my wife is 3 weeks short but is now into year 3 of being self employed)

2.
Business revenue details not signed on application form (this makes no sense to either of us)

3.
Original Bank statement must be supplied , internet statements cannot be accepted (I bank with online bank N26 so this is not possible )

A bit dejected but I am hopeful that this is more down to this particular council and their backwards system rather than our application , the above rejection reasons seem ridiculous so I refuse to believe the application ever went to external underwriters and this was an internal decision.

Of course we rang them and they told us they have no input , there is a serious Gap in communication with this scheme unfortunately.

Anyway haven't heard from Dublin city yet but now 8 weeks since applying so hopefully hearing something in the next couple of weeks.



Apologies for the rant , just a little pissed off

We have had similar experience in Cork. Vague reasons for original rejection. Sent in appeal 6 weeks ago with all additional documentation and re-calculations made as clear as we could make out, given the information. Still no word on appeal 6 weeks on. Our original application went in in March. So we are over 3 months in the process and still no idea where we stand. Still hoping there's light at the end..

Ailbag

stryker mcqueen wrote: »

We have applied to Dublin city council , fingal and South Dublin , DCC and fingal were an absolute pleasure to deal with , South Dublin made it difficult to even apply but we got there in the end......

Application to SDCC went in 5 weeks ago and we have just received a letter of rejection , they claim this went to external underwriters but I am highly doubtful as our other applications went in 3 weeks earlier and we've heard nothing so far .

Reasons given

1.
2 years self employed audited accounts incomplete (my wife is 3 weeks short but is now into year 3 of being self employed)

2.
Business revenue details not signed on application form (this makes no sense to either of us)

3.
Original Bank statement must be supplied , internet statements cannot be accepted (I bank with online bank N26 so this is not possible )

A bit dejected but I am hopeful that this is more down to this particular council and their backwards system rather than our application , the above rejection reasons seem ridiculous so I refuse to believe the application ever went to external underwriters and this was an internal decision.

Of course we rang them and they told us they have no input , there is a serious Gap in communication with this scheme unfortunately.

Anyway haven't heard from Dublin city yet but now 8 weeks since applying so hopefully hearing something in the next couple of weeks.



Apologies for the rant , just a little pissed off

I used internet statements and got approved no bother - they were even half the original size because I was low on ink and paper! My bank wouldn't give me original statements and I have paperless banking so no other option...

stryker mcqueen

Letter received from fingal today to advise our application has been sent to the housing authority ....... amazing how they didn't have the same issues as south Dublin county council who are clearly doing this scheme their own way

Sam2904

Hi all.has anyone got approval for a new build/self build if so how long do you get mortgage approval for. We applied and our house isnt ready until february. Just wondering will we have to start the whole process again

robbo25

Hi - just gone sale agreed. Has anyone drawn down their loan yet? Just wondering how long and smooth this process is going to be??

Sammylok1977

I m single application and apply DCC the 23th May and I got the loan approval the 5th July . Is almost 7 weeks!! So happy

LK1988

Sammylok1977 wrote: »

I m single application and apply DCC the 23th May and I got the loan approval the 5th July . Is almost 7 weeks!! So happy

Congratulations. We are coming up to 6 weeks wait now.

stryker mcqueen

Sammylok1977 wrote: »

I m single application and apply DCC the 23th May and I got the loan approval the 5th July . Is almost 7 weeks!! So happy

Congratulations , letter received today with decision , will be opening after work so hopefully I'll be back on here with good news

Sammylok1977

Congratulations to you too!!
May I ask which one I should sign ?? Seem have 3 forms included but I haven't have a clue which one I should submit because I haven't find any property and not yet contact my solicitor :-(

Sammylok1977

Congratulations to you too!!
May I ask which one I should sign ?? Seem have 3 forms included but I haven't have a clue which one I should submit because I haven't find any property and not yet contact my solicitor :-(

Sammylok1977

Thank you and seem quick to receive now then before I have no clue which form I should sign to submit

rachieqtpie

Sammylok1977 wrote: »

Thank you and seem quick to receive now then before I have no clue which form I should sign to submit

If I remember correctly one is for you to keep one if for your solicitor and one for county council. Think it had it in header of letter which was which. Can check when I’m home