Rebuilding Ireland home loan

Salanky

The chat function is affected by your cookie settings. There should be a settings cog on the bottom left of the screen and you click that. It has three opitons in it and one is for Zendesk Chat. This has to be on to allow the chat icon to be there.

Alanoshea1

Salanky wrote: »

The chat function is affected by your cookie settings. There should be a settings cog on the bottom left of the screen and you click that. It has three opitons in it and one is for Zendesk Chat. This has to be on to allow the chat icon to be there.

Got I sorted, was cookie related:). Thanks for the replies much appreciated

jill_valentine

I've seen it suggested people should look for solicitors who are familiar with the Rebuilding Ireland scheme.

I know it's probably ropey to explicitly recommend to warn off using particular solicitors, but would it be kosher to note - "this solicitor is experienced with RI"?

jessimirish

Hey guys, anyone else's application with DCC and waiting to go to the credit committee? Anyone know how often they are?

I messaged last week and they said they didn't know when the next one would be, but my application came back from the underwriters in early October so has been waiting since then. I know these things take time, but just want to get a sense of roughly when it all might happen (sent in my application on September 8).

Carol84

Hi guys, just wondering does anyone know how difficult it is in getting this mortgage, myself and partner are on a low income he is on a scheme and I work in chilldcare so not exactly the best paid job out there we are currently renting so can def afford repayments. Is there anything we can do to help our chances in being successfull

Jafin

Carol84 wrote: »

Hi guys, just wondering does anyone know how difficult it is in getting this mortgage, myself and partner are on a low income he is on a scheme and I work in chilldcare so not exactly the best paid job out there we are currently renting so can def afford repayments. Is there anything we can do to help our chances in being successfull

It's not super difficult, it can just be a fairly long process. Easiest thing to do is check the calculator on the Rebuilding Ireland website. That will give you an idea of how much you would qualify for. You will definitely qualify for something, it may just not be the amount you want/need.

ABCD_1234

Carol84 wrote: »

Hi guys, just wondering does anyone know how difficult it is in getting this mortgage, myself and partner are on a low income he is on a scheme and I work in chilldcare so not exactly the best paid job out there we are currently renting so can def afford repayments. Is there anything we can do to help our chances in being successfull

Check out the online calculator and checklist on the application form. That’ll give you a good idea. Some County Councils are more difficult than orhers..

KH1591

Has anyone purchased a new build with this scheme? If so, has the valuation report been done off the plans for the house? Ours won't be ready until spring so the report will need to be done from the plans.

kbman

KH1591 wrote: »

Has anyone purchased a new build with this scheme? If so, has the valuation report been done off the plans for the house? Ours won't be ready until spring so the report will need to be done from the plans.

We're in that exact scenario with a new build.
We got AIP in August 2019, and Signed Contract for Mortgage and Building Contracts in October 2019.
House has just been completed end of October and we've got our first snag done.
Awaiting builder to come back to us on completion of these bits.
The valuation was done yesterday.

We're hoping to draw down by the end of the month.

I believe it'd be the same in your case, although building times may vary.
In our case, Irish Water seems to be holding up the show and delaying each row. A colleague of mine in a different council had no such delays that i'm aware of and quicker building times due to less customisations in the house allowed.

You'd be best to contact the Council where the new build you're looking at is to confirm.

Best of luck

Salanky

For those wondering if its possible to buy a house as a single person with this scheme....the answer is yes! I'm collecting my keys today to my dream house. It took maybe 10 years to get here but I'm here. I went through Louth and have had no huge issues along the way. The odd hiccup with paperwork taking a while but nothing major. Sale agreed to closed was 16 weeks to the day. For those pulling their hair out along the journey remember why you are doing this, it will pass and you will come out the other side with your very own house. All the stress of getting it will be forgotten when those keys hit the palm of your hand.

KH1591

Salanky wrote: »

For those wondering if its possible to buy a house as a single person with this scheme....the answer is yes! I'm collecting my keys today to my dream house. It took maybe 10 years to get here but I'm here. I went through Louth and have had no huge issues along the way. The odd hiccup with paperwork taking a while but nothing major. Sale agreed to closed was 16 weeks to the day. For those pulling their hair out along the journey remember why you are doing this, it will pass and you will come out the other side with your very own house. All the stress of getting it will be forgotten when those keys hit the palm of your hand.

Thanks so much for posting this! Congratulations, you must feel so relieved to finally have your dream home! Best of luck with everything!

beanyb

Salanky wrote: »

For those wondering if its possible to buy a house as a single person with this scheme....the answer is yes! I'm collecting my keys today to my dream house. It took maybe 10 years to get here but I'm here. I went through Louth and have had no huge issues along the way. The odd hiccup with paperwork taking a while but nothing major. Sale agreed to closed was 16 weeks to the day. For those pulling their hair out along the journey remember why you are doing this, it will pass and you will come out the other side with your very own house. All the stress of getting it will be forgotten when those keys hit the palm of your hand.

Congratulations!

ABCD_1234

Salanky wrote: »

For those wondering if its possible to buy a house as a single person with this scheme....the answer is yes! I'm collecting my keys today to my dream house. It took maybe 10 years to get here but I'm here. I went through Louth and have had no huge issues along the way. The odd hiccup with paperwork taking a while but nothing major. Sale agreed to closed was 16 weeks to the day. For those pulling their hair out along the journey remember why you are doing this, it will pass and you will come out the other side with your very own house. All the stress of getting it will be forgotten when those keys hit the palm of your hand.

Brilliant! Congratulations!!!

jessimirish

Salanky wrote: »

For those wondering if its possible to buy a house as a single person with this scheme....the answer is yes! I'm collecting my keys today to my dream house. It took maybe 10 years to get here but I'm here. I went through Louth and have had no huge issues along the way. The odd hiccup with paperwork taking a while but nothing major. Sale agreed to closed was 16 weeks to the day. For those pulling their hair out along the journey remember why you are doing this, it will pass and you will come out the other side with your very own house. All the stress of getting it will be forgotten when those keys hit the palm of your hand.

Ahh amazing! Congratulations. I'm applying as a single person so this is great to hear! Inspiring stuff.

Lwoods90

Hi,

For anyone who is still waiting and thinking your turn will never come, my advice is don’t give up no matter how stressful it gets.

After been offered way less then the market value from the banks because of our two kids, we moved into our new forever family home this week all thanks to the Rebuilding Ireland Home Loan.

The owl saying goes ‘What’s for you, won’t pass you’. Good luck to everyone still hanging in there. Our time frame was March to November.

Keep believing and stay safe.

L

KH1591

Lwoods90 wrote: »

Hi,

For anyone who is still waiting and thinking your turn will never come, my advice is don’t give up no matter how stressful it gets.

After been offered way less then the market value from the banks because of our two kids, we moved into our new forever family home this week all thanks to the Rebuilding Ireland Home Loan.

The owl saying goes ‘What’s for you, won’t pass you’. Good luck to everyone still hanging in there. Our time frame was March to November.

Keep believing and stay safe.

L

Congratulations and best of luck in your new home!! Thanks for posting!! We'll all get there!!

Scr88

beanyb wrote: »

Congratulations!

Huge congrats. Enjoy every minute in you new home.

valarmorghulis

Hi, I was just wondering what people thought of the following news regarding the scheme.

I never knew the approvals were so low and it seems the increase in interest rate from 2% to 2.75% in Jan 2020 is putting people off along with the extortionate MPI. Avant now has a 1.95% mortgage with KBC and AIB offering 2.3% mortgages fixed for 3 years.

It's my understanding the ESRI advised the government to increase the interest rates as were higher risk borrowers, however this was meant to be an affordable housing scheme for first time buyers not a high risk mortgage group scheme.

https://www.irishtimes.com/business/personal-finance/why-won-t-the-state-offer-cheap-loans-to-homebuyers-1.4405728
https://www.irishtimes.com/business/economy/approvals-for-government-s-home-loan-scheme-plummet-60-1.4405691

"235 home loans were approved in the first six months of 2020 and was even down 37% pre lockdown for Q1"
"Last year 140 home-buyers were approved for the scheme in the first six months of the year; this year. however, just 56 were."
"140 people approved in Dublin City for Jan-Jun 2019 vs 56 people for Jan-Jun 2020"


I also had one last question about gift letters. Banks have them as a standard template letter but RBI doesnt. Does this mean that as long as you can explain any deposits not from salary, but gifted from parents, this will suffice. For exp if they are amounts to assist with gathering deposit over a year rather than 1 lump sum. Obviously you need a minimum of 30% of this deposit amount must come from consistent and regular savings, but just wondering what exactly do they require for any amounts non salary from parents.

Thanks

KH1591

Quick question, little confused.
Has anyone received their approval in principle and signed contracts on a new build with this?
They say you can't get the full approval without the valuation report but to secure a new build you need to sign contracts early to have the home ready for this report to be done.
Very confused as I didn't know this was how it was done and I wasn't aware you were able to sign and pay 10% on a house with just the approval in principle.
Any help would be great.

Sarahedel1991

Hey! We just got our approval in principle letter. We already paid a 5000 deposit for a new build that will be ready in March. We haven't done any evaluation /engineers report etc. We've just got a solicitor so far.

I'm in the same boat as yourself, not sure where to go from here, the council said to contact them when the house is fully complete for the report to be done. Will it take ages then for funds to be sent over I wonder... They weren't very clear on the next Steps!

KH1591 wrote: »

Quick question, little confused.
Has anyone received their approval in principle and signed contracts on a new build with this?
They say you can't get the full approval without the valuation report but to secure a new build you need to sign contracts early to have the home ready for this report to be done.
Very confused as I didn't know this was how it was done and I wasn't aware you were able to sign and pay 10% on a house with just the approval in principle.
Any help would be great.

KH1591

Sarahedel1991 wrote: »

Hey! We just got our approval in principle letter. We already paid a 5000 deposit for a new build that will be ready in March. We haven't done any evaluation /engineers report etc. We've just got a solicitor so far.

I'm in the same boat as yourself, not sure where to go from here, the council said to contact them when the house is fully complete for the report to be done. Will it take ages then for funds to be sent over I wonder... They weren't very clear on the next Steps!

Its very confusing isnt it? Like you they say they can only accept the valuation report on the house fully ready to move into, but how do we do this without signing contracts and paying the full 10% deposit? You'd be doing it with just an AIP so to me it feels like a gamble with your entire deposit! Very confusing!

SCLW89

Sarahedel1991 wrote: »

Hey! We just got our approval in principle letter. We already paid a 5000 deposit for a new build that will be ready in March. We haven't done any evaluation /engineers report etc. We've just got a solicitor so far.

I'm in the same boat as yourself, not sure where to go from here, the council said to contact them when the house is fully complete for the report to be done. Will it take ages then for funds to be sent over I wonder... They weren't very clear on the next Steps!

Hi Sarahedel1991 as far as I can remember was it cork co co you applied with?? How long did it take from date of application to aip??

Antho12

valarmorghulis wrote: »

Hi, I was just wondering what people thought of the following news regarding the scheme.

I never knew the approvals were so low and it seems the increase in interest rate from 2% to 2.75% in Jan 2020 is putting people off along with the extortionate MPI. Avant now has a 1.95% mortgage with KBC and AIB offering 2.3% mortgages fixed for 3 years.

It's my understanding the ESRI advised the government to increase the interest rates as were higher risk borrowers, however this was meant to be an affordable housing scheme for first time buyers not a high risk mortgage group scheme.

I also had one last question about gift letters. Banks have them as a standard template letter but RBI doesnt. Does this mean that as long as you can explain any deposits not from salary, but gifted from parents, this will suffice. For exp if they are amounts to assist with gathering deposit over a year rather than 1 lump sum. Obviously you need a minimum of 30% of this deposit amount must come from consistent and regular savings, but just wondering what exactly do they require for any amounts non salary from parents.

Thanks

I’m with AIB so I used the AIB gift letter template in my Rebuilding Ireland application to justify the amounts received as a gift. Later when you find a property, prior to signing the contracts your solicitor might have your parents sign an official form to legally remove any claim they may have over the property.


Regarding what you mentioned, 3 years out of a 25 or 30 years long mortgage is nothing. One of the benefits with Rebuilding Ireland is that you’re on a fixed rate for the whole duration of your mortgage. Banks may offer a lower % for the first couple of years and then they’ll most likely move you to a variable rate. The main benefit with Rebuilding Ireland is that they can lend you a much bigger amount compared to banks.

Good luck

jill_valentine

valarmorghulis wrote: »

Hi, I was just wondering what people thought of the following news regarding the scheme.

I never knew the approvals were so low and it seems the increase in interest rate from 2% to 2.75% in Jan 2020 is putting people off along with the extortionate MPI. Avant now has a 1.95% mortgage with KBC and AIB offering 2.3% mortgages fixed for 3 years.

It's my understanding the ESRI advised the government to increase the interest rates as were higher risk borrowers, however this was meant to be an affordable housing scheme for first time buyers not a high risk mortgage group scheme.

https://www.irishtimes.com/business/personal-finance/why-won-t-the-state-offer-cheap-loans-to-homebuyers-1.4405728
https://www.irishtimes.com/business/economy/approvals-for-government-s-home-loan-scheme-plummet-60-1.4405691

"235 home loans were approved in the first six months of 2020 and was even down 37% pre lockdown for Q1"
"Last year 140 home-buyers were approved for the scheme in the first six months of the year; this year. however, just 56 were."
"140 people approved in Dublin City for Jan-Jun 2019 vs 56 people for Jan-Jun 2020"


I also had one last question about gift letters. Banks have them as a standard template letter but RBI doesnt. Does this mean that as long as you can explain any deposits not from salary, but gifted from parents, this will suffice. For exp if they are amounts to assist with gathering deposit over a year rather than 1 lump sum. Obviously you need a minimum of 30% of this deposit amount must come from consistent and regular savings, but just wondering what exactly do they require for any amounts non salary from parents.

Thanks

Being honest, it's hard not to think the government's housing schemes - RI and HTB - are in many ways designed to fail. The interest bumps are indeed a bit of a kick in the teeth.

The fixed interest rate is a great bit of reassurance long term, so it isn't a total waste of time but IMHO the only real benefit of RI is that it disregards the standard salary cap.

I say this as somebody who managed to thread the needle and qualify for RI, it has a lot of issues and the discrepancies like the ones you highlight underline the conflicts between intended purpose and effect, and how one agency/official can treat one thing as gospel while another is totally different.

In the end RI will make the difference between me getting somewhere to live and not, but I am absolutely an exception.

Lauren52

jill_valentine wrote: »

Being honest, it's hard not to think the government's housing schemes - RI and HTB - are in many ways designed to fail. The interest bumps are indeed a bit of a kick in the teeth.

The fixed interest rate is a great bit of reassurance long term, so it isn't a total waste of time but IMHO the only real benefit of RI is that it disregards the standard salary cap.

I say this as somebody who managed to thread the needle and qualify for RI, it has a lot of issues and the discrepancies like the ones you highlight underline the conflicts between intended purpose and effect, and how one agency/official can treat one thing as gospel while another is totally different.

In the end RI will make the difference between me getting somewhere to live and not, but I am absolutely an exception.

This is it, its about being able to borrow more, I have rented for 11 years. Never missed a rent payment or a bill. Saved for the last 3 years and finally have 10%. We earn to much to be eligible for a council house. We were living in a rented house for 7 years as a family when the landlord sold. This left us with having to pay nearly double the rent we were paying because of the extortionate rent prices now. If we were to get a mortgage from a bank , we couldn't afford to live anywhere close to where our children go to school, where we work and where our family and friends work. When I say close we would literally have to move well over an hour away or more. So with RI it means we can purchase a house that is closer to our family friends school and work life. All be it with a higher mortgage but also less than we pay in rent.

We are currently living in a 2bed apartment, with 2 children a girl and a boy who have to share a room.

Yes there is people a lot worse off than us, but we have worked so hard and hopefully it will pay off.

So as much as you might have to pay that little bit extra, at least you know how much every month for the foreseeable and will have the security , instead of fearing someone will come and sell the home you are renting .

JDigweed

Such a joke of a scheme. This is supposed to help people who earn a decent wage but for multiple reasons can't get enough of a loan from a bank. (1 income only etc).
They are following the same punitive criteria as a bank instead of taking a case by case approach.
A salary of 60k with 30,000 deposit and because of modest car loan of 15k they'll lend €140,000.....what good is that.
Rent on a house of 1250 paid for 5 years and counting.....is that not enough to prove ability to repay the amount requested

KH1591

JDigweed wrote: »

Such a joke of a scheme. This is supposed to help people who earn a decent wage but for multiple reasons can't get enough of a loan from a bank. (1 income only etc).
They are following the same punitive criteria as a bank instead of taking a case by case approach.
A salary of 60k with 30,000 deposit and because of modest car loan of 15k they'll lend €140,000.....what good is that.
Rent on a house of 1250 paid for 5 years and counting.....is that not enough to prove ability to repay the amount requested

I totally get where you're coming from, I rent myself! But if you have a loan they take that into account! Its probably not possible on that amount of a car loan but its best to try clear any loans before taking out any mortgage!

JDigweed

KH1591 wrote: »

I totally get where you're coming from, I rent myself! But if you have a loan they take that into account! Its probably not possible on that amount of a car loan but its best to try clear any loans before taking out any mortgage!

I hear ya. Maybe I'm naive but I would have thought paying high rent, servicing a loan, saving and living relatively frugally would be enough to pass a mortgage stress test. It's clearly reality. That's the country we live in now I suppose.

KH1591

JDigweed wrote: »

I hear ya. Maybe I'm naive but I would have thought paying high rent, servicing a loan, saving and living relatively frugally would be enough to pass a mortgage stress test. It's clearly reality. That's the country we live in now I suppose.

100%!! This was my thought process a while back until they explained the whole lending criteria to me!
Definitely keep trying and get some advise from where you applied

TaDa

Just looking to see if anyone has obtained approval to drawdown while still on a wage subsidy scheme with their employer?

I have AIP but no use if I cannot drawdown due to a subsidy scheme my company avail of.