Rebuilding Ireland home loan

Lauren52 · 31-05-2021 9:17pm

Ace2007 wrote: »

That’s 100% correct, but just two points:

The poster believes the current system is unfair and that they should be able to top up the amount in order to pay more for a property - in essence buying a property that is above the majority of other buyers under the scheme.

Secondly they believe the market cap should be increase to keep up with the market - despite the fact the majority of people using the scheme are low earners. It makes no financial sense that a couple on sat 75k or a single person on 50k, could potentially borrow 360k for a 400k cap in dublin. When an individual on 90k a year wouldn’t even get that mortgage through a bank. They low earners would be in way over their head.

Would you agree?

I can see where You are coming from. I agree with what you are saying here but also, house prices have gone up 30% so this could be reflected with the council max for each area.

We were lucky and put our deposit down in 2020 Now house prices have gone up 30% we would of been fecked. We are also lucky we live in Kildare so we could of had the Max same as Dublin , however we bought what we could afford. We were only able to borrow 221 as this was the max based on our earnings. We had to put the remainder to it and saved everything we earned for the last 3 years so still had huge savings to go towards it.

When You explain it with the example of a higher earner not being able to get the price with a bank it's less unfair ")

Jennyod31 · 31-05-2021 9:49pm

Hi all

My application has now gone to the credit committee is there a time frame on how long it takes at this stage

Lauren52 · 31-05-2021 10:02pm

Jennyod31 wrote: »

Hi all

My application has now gone to the credit committee is there a time frame on how long it takes at this stage

We got an email that evening and the letter 2 days later.

Jennyod31 · 31-05-2021 10:20pm

Lauren52 wrote: »

We got an email that evening and the letter 2 days later.

That was super fast please god so mine will be quick

Karis · 31-05-2021 10:20pm

Lauren52 wrote: »

We bought ours before house was built. This is incorrect. Some councils are saying this even Kildare said it to me , but I got the valuation before house was done he went to the site. Then when the house was ready got the same man out to do a final so we could drawdown.

Our council wouldn't agree to that:"we are unable to issue the Full Offer Letter until the valuation is completed on the property. This will be done when the house is fully built, kitchen is fitted and the property is connected to services such as electricity and water." Honestly the builder wasn't that happy about council loan, they said that they had two cases before , where people were going with the county and they couldn't provide the funds at the end. I guess we're just that unlucky...if there was a different council or different builder we might got our house already....

dark crystal · 31-05-2021 10:35pm

deise121 wrote: »

New housing estate being build in Waterford across from a halting site and next to 3 council estates. These are the starting prices...

House Type

Yates - 3 Bed Semi Detached - €255,950 (1,130 sq ft) - PRE LAUNCH PRICE

Completion from August 2021.

What an absolute farce this rebuilding ireland homeloan is when you can't even purchase a house in the worst part of waterford because the max house prices is 250k. I feel so ****ing hopeless.

I know the place you're talking about and no way will they sell privately at that price. Who would willingly pay to live there? I'd say the council will end up buying them all.

Just as a matter of interest, I know of no new build that would go on sale for 250k or under. Are there currently any in Waterford?

Such a shame this scheme doesn't encompass second-hand houses. We might stand a slight chance of qualifying then on our combined income of 55k

rob316 · 31-05-2021 10:38pm

dark crystal wrote: »

I know the place you're talking about and no way will they sell privately at that price. Who would willingly pay to live there? I'd say the council will end up buying them all.

Just as a matter of interest, I know of no new build that would go on sale for 250k or under. Are there currently any in Waterford?

Such a shame this scheme doesn't encompass second-hand houses. We might stand a slight chance of qualifying then on our combined income of 55k

It does cover 2nd hand houses.

dark crystal · 31-05-2021 10:40pm

rob316 wrote: »

It does cover 2nd hand houses.

I'm so sorry! Was thinking of the help to buy scheme. So many schemes I got confused!

Lauren52 · 01-06-2021 7:39am

Jennyod31 wrote: »

That was super fast please god so mine will be quick

It was 16mts wait before that though - painful. They have the decision that day of the meeting. Then it just depends how long it takes for the letter to be posted out. Good luck.

Lauren52 · 01-06-2021 7:40am

Karis wrote: »

Our council wouldn't agree to that:"we are unable to issue the Full Offer Letter until the valuation is completed on the property. This will be done when the house is fully built, kitchen is fitted and the property is connected to services such as electricity and water." Honestly the builder wasn't that happy about council loan, they said that they had two cases before , where people were going with the county and they couldn't provide the funds at the end. I guess we're just that unlucky...if there was a different council or different builder we might got our house already....

This is awful , so sorry to hear this.

clio_16v · 01-06-2021 9:08am

I sent an email asking for an update and got automated responses saying 5 or 6 users' mailbox is full and can't receive emails. I did not realise that this was still a thing in 2021

Mbourke91 · 01-06-2021 9:38am

LaurenMcHugh wrote: »

We sent back our signed letter of offer, form 2 and mpi forms back to the council 4 weeks ago. I’ve been in touch with the coco and last week she said the paperwork is with their solicitors and they’ll be in touch with mine. Does anyone know how much longer I will be waiting? Also we both answered yes to parts of the MPI form, they have said nothing about this. When do you know if you will get a phone interview for mpi?
Thanks

Hi Lauren, we sent our MPI forms in last Friday and we had the phone interview this morning.

deise121 · 01-06-2021 9:45am

Ace2007 wrote: »

But that's not what Rebuilding Ireland Home loan is for really. surely if you have saved over 100k, then a bank would give you a mortgage unless you have a poor credit history.

Is it fair that you could potential outbid someone who doesn't qualify for the scheme?

no, the bank won't give me a mortgage because i have four children and a wife who cannot work since two of them are special needs with autism. we have one income and straight away 1,000 euro a month is deducted from the bank's magic number of 250 euro a month per child. get off your high horse

Ace2007 · 01-06-2021 9:53am

deise121 wrote: »

no, the bank won't give me a mortgage because i have four children and a wife who cannot work since two of them are special needs with autism. we have one income and straight away 1,000 euro a month is deducted from the bank's magic number of 250 euro a month per child. get off your high horse

Without getting personal about the situation - you do realise with the example i gave as to why banks can't give increased loans just because of the market?
Even if your situation, if you ended up breaking your arm or being out of work for 6 months or losing your job - how would the loan be repaid, especially if the market cap went up?

deise121 · 01-06-2021 10:28am

Ace2007 wrote: »

Without getting personal about the situation - you do realise with the example i gave as to why banks can't give increased loans just because of the market?
Even if your situation, if you ended up breaking your arm or being out of work for 6 months or losing your job - how would the loan be repaid, especially if the market cap went up?

cop on. anyone can lose their jobs at any time. in fact, 3 of my mates quit their jobs literally weeks after mortgage approval. get a grip. being a "low earner" doesn't mean you are more likely to lose your job. if you are able to pay a rent of over 1k per month for the past 15 years, surely someone would be able to pay back a mortgage that will probably be just over half of that. we're not numbers, we are people. banks take absolutely no personal history into account when mortgages are applied for. this is off topic anyway. my entire point was the current max value of the rebuilding ireland homeloan should reflect the market value of homes. absolutely nowhere did i say i wanted to buy a million euro home, but that's what you're ****ing on about

edit: this is not about banks anyway, this thread is about the rebuilding ireland homeloan

Ace2007 · 01-06-2021 10:46am

deise121 wrote: »

cop on. anyone can lose their jobs at any time. in fact, 3 of my mates quit their jobs literally weeks after mortgage approval. get a grip. being a "low earner" doesn't mean you are more likely to lose your job. if you are able to pay a rent of over 1k per month for the past 15 years, surely someone would be able to pay back a mortgage that will probably be just over half of that. we're not numbers, we are people. banks take absolutely no personal history into account when mortgages are applied for. this is off topic anyway. my entire point was the current max value of the rebuilding ireland homeloan should reflect the market value of homes. absolutely nowhere did i say i wanted to buy a million euro home, but that's what you're ****ing on about

edit: this is not about banks anyway, this thread is about the rebuilding ireland homeloan

I never said lower earner = more likely to lose you job - that's you make that assumption. the CBI rules of 3.5x salary is there so people don't get in over their head. Why should the rebuilding Ireland home loan scheme offer higher terms.

You want the rebuilding Ireland scheme to increase the cap - so let's say Dublin was 400k, 90% of this is 360k, like i gave before you could have someone on 50k getting 7 times there salary - which no middle/higher earner could get from a bank - yet you don't seem to realize how wrong this would be????

Karis · 01-06-2021 10:50am

Jennyod31 wrote: »

Hi all

My application has now gone to the credit committee is there a time frame on how long it takes at this stage

The hole process took around 5 weeks, from sending in application to getting AIP, Meath Co. Co.

Jafin · 01-06-2021 10:51am

Ace2007 wrote: »

I never said lower earner = more likely to lose you job - that's you make that assumption. the CBI rules of 3.5x salary is there so people don't get in over their head. Why should the rebuilding Ireland home loan scheme offer higher terms.

You want the rebuilding Ireland scheme to increase the cap - so let's say Dublin was 400k, 90% of this is 360k, like i gave before you could have someone on 50k getting 7 times there salary - which no middle/higher earner could get from a bank - yet you don't seem to realize how wrong this would be????

Forgive my interruption to the two of you, but from what I can tell deise121 is not asking for people to be allowed to borrow more. He's asking to be allowed to use extra savings to go past the current cap. As it stands if you're buying in Dublin you cannot buy a property that costs more than 320k even if you have the extra savings to put towards it. All he's asking to be allowed to do is to go past the current cap with his own savings. He's not looking to borrow more money.

optogirl · 01-06-2021 10:55am

Jafin wrote: »

Forgive my interruption to the two of you, but from what I can tell deise121 is not asking for people to be allowed to borrow more. He's asking to be allowed to use extra savings to go past the current cap. As it stands if you're buying in Dublin you cannot buy a property that costs more than 320k even if you have the extra savings to put towards it. All he's asking to be allowed to do is to go past the current cap with his own savings. He's not looking to borrow more money.

Yes this is crippling us - we have an additional 20k in savings that we could put towards a house but are not allowed to offer one cent over 320. We have lost out on every house we have gone for because as soon as someone offers 321 we are out of the game.

Darkglasses · 01-06-2021 11:07am

Ace2007 wrote: »

I never said lower earner = more likely to lose you job - that's you make that assumption. the CBI rules of 3.5x salary is there so people don't get in over their head. Why should the rebuilding Ireland home loan scheme offer higher terms.

You want the rebuilding Ireland scheme to increase the cap - so let's say Dublin was 400k, 90% of this is 360k, like i gave before you could have someone on 50k getting 7 times there salary - which no middle/higher earner could get from a bank - yet you don't seem to realize how wrong this would be????

The reason RIHL can offer more than 3.5x salary (and does) is because of the repayment situation. For example, a single earner on €25k can borrow €115,000 over 30 years on RIHL. On RIHL, the interest rate is fully fixed at a low interest rate for the full lifetime of the mortgage. Banks don't offer this, and so have to stress-test the repayment capacity in case of an interest rate change to say 6%.

The reason why RIHL sets a maximum purchase price is, in my opinion, mainly to try control house prices. If you introduce more money into the housing market, vendors will increase their prices accordingly. Anything that was priced around the RIHL price limit will be increased to the new limit. The last thing the government wants to do is have their council mortgage scheme increase house prices further. It also further loads financial pressure on the local authorities if they are lending more.

There are absolutely flaws to this, which is what deise121 is pointing out. The prices have already surpassed the RIHL purchase limits in many counties. I absolutely think that the scheme should update their limits and in which counties the increased limit applies. Remember, the limit has been unchanged since the scheme launched in 2018. House prices have increased since then.

deise121 · 01-06-2021 11:34am

Jafin wrote: »

Forgive my interruption to the two of you, but from what I can tell deise121 is not asking for people to be allowed to borrow more. He's asking to be allowed to use extra savings to go past the current cap. As it stands if you're buying in Dublin you cannot buy a property that costs more than 320k even if you have the extra savings to put towards it. All he's asking to be allowed to do is to go past the current cap with his own savings. He's not looking to borrow more money.

This is 100% exactly the issue. There are very few houses in Waterford below 250k. The minute the home is 250,000.01 you cannot bid on it. We will be approved for a decent amount and it would be nice if we could put savings towards any amount over 250k. Most homes that would suit our needs are starting between 255k and 270k.

Ace2007 · 01-06-2021 11:46am

Darkglasses wrote: »

There are absolutely flaws to this, which is what deise121 is pointing out. The prices have already surpassed the RIHL purchase limits in many counties. I absolutely think that the scheme should update their limits and in which counties the increased limit applies. Remember, the limit has been unchanged since the scheme launched in 2018. House prices have increased since then.

I get that and i get the frustration, but is the poster more an outlier than the norm. Do you think when the scheme was set up, that they expected an applicant to have 100k in savings?. One could say it's not fair to have a scheme, whereby if you have additional savings you can outbid some one who isn't fortunate to have the additional funds just sitting around.

An idea that i had in another thread to take heat out of the market, would be that only savings or a large % of the deposit can be used from regular savings - this would take the 50k "loan" from Bank of Mam and Dad out of the equation, and would reduce the amount people have to spend on house.

Even the RIHL have a requirement that 30% of deposit must come from regularly savings.

Darkglasses · 01-06-2021 12:37pm

Ace2007 wrote: »

I get that and i get the frustration, but is the poster more an outlier than the norm. Do you think when the scheme was set up, that they expected an applicant to have 100k in savings?. One could say it's not fair to have a scheme, whereby if you have additional savings you can outbid some one who isn't fortunate to have the additional funds just sitting around.

An idea that i had in another thread to take heat out of the market, would be that only savings or a large % of the deposit can be used from regular savings - this would take the 50k "loan" from Bank of Mam and Dad out of the equation, and would reduce the amount people have to spend on house.

Even the RIHL have a requirement that 30% of deposit must come from regularly savings.

Certainly having €100k is an outlier, but you don't need to have that much savings to be able to purchase over the limit. Having €30k savings is not unusual, but you can't put that much on top of a mortgage of €225k and purchase a house for €250k in most counties.

I'm not arguing against a requirement for regular savings. In fact, I don't really care about people's source of equity. I'm arguing that the maximum purchase caps are now way behind the times for a lot of counties.

LaurenMcHugh · 02-06-2021 12:02pm

LaurenMcHugh wrote: »

We sent back our signed letter of offer, form 2 and mpi forms back to the council 4 weeks ago. I’ve been in touch with the coco and last week she said the paperwork is with their solicitors and they’ll be in touch with mine. Does anyone know how much longer I will be waiting? Also we both answered yes to parts of the MPI form, they have said nothing about this. When do you know if you will get a phone interview for mpi?
Thanks

Funnily enough we actually got the call from the MPI the day I posted this so currently waiting to hear back. Also just got an email to send over confirmation of unchanged circumstances. I’m assuming things are moving finally

shadyslimshady · 02-06-2021 12:28pm

Ace2007 wrote: »

I never said lower earner = more likely to lose you job - that's you make that assumption. the CBI rules of 3.5x salary is there so people don't get in over their head. Why should the rebuilding Ireland home loan scheme offer higher terms.

You want the rebuilding Ireland scheme to increase the cap - so let's say Dublin was 400k, 90% of this is 360k, like i gave before you could have someone on 50k getting 7 times there salary - which no middle/higher earner could get from a bank - yet you don't seem to realize how wrong this would be????

The reason the 3.5 cap is there is to simply stop the price of properties going more out of control than they allready are.

I have single friends in Dublin getting 60K a year working in IT and can walk into other companies if they wanted to. No job shortages for them.

They can't afford a mortgage in Dublin.

Ace2007 · 02-06-2021 12:44pm

shadyslimshady wrote: »

The reason the 3.5 cap is there is to simply stop the price of properties going more out of control than they allready are.

I have single friends in Dublin getting 60K a year working in IT and can walk into other companies if they wanted to. No job shortages for them.

They can't afford a mortgage in Dublin.

They could probably afford a mortgage in any other part of Ireland though? Given large amounts of IT work in out scoured, they are at a huge advantage that they could buy a small mansion in many parts of the country.

How many single people are buying houses in Dublin?

zan4ik89 · 02-06-2021 12:53pm

Hello everyone. Did everyone see the news about EWSS being extended until 31 December? Looks like I will never buy a house &#55357;&#56877;

If anyone had positive outcome being on ewss I will really appreciate any information.

shadyslimshady · 02-06-2021 1:03pm

Ace2007 wrote: »

They could probably afford a mortgage in any other part of Ireland though? Given large amounts of IT work in out scoured, they are at a huge advantage that they could buy a small mansion in many parts of the country.

How many single people are buying houses in Dublin?

You really don't get the housing crisis do you?

Ace2007 · 02-06-2021 1:30pm

shadyslimshady wrote: »

You really don't get the housing crisis do you?

I do get it, likewise i get that there was a time you couldn't get a job in this country and your only option was to leave - which many leaving friends, family, your home town etc - and people did it because there was no other choice. They didn't sit on boards moaning about it all day - they got on with it.

Now there is a shortage in the supply of houses in certain areas, and people are saying it's the government this and the government that, but a simple solution is probably to drive max 1 hour away from the city and you'll find plenty of places.

Your friends claim that they can't get a mortgage, yet when i go onto myhome.ie, there are over 400 properties valued at under 250k,

https://www.myhome.ie/residential/dublin/property-for-sale?maxprice=250000

60k salary - 3.5x this is 210k, I expect them to save saved at least 40k over the years if they are serious about buying, and maybe even more.

Now you'll probably tell me there are no properties where they want to live, or the size that they want etc.

Edit: here's a 3 bedroom, 2 bathroom corner house on market for 195K, if this was in Dundrum or Clontarf - it would probably be going for 500k and folk would say that it was reasonable.
https://www.myhome.ie/residential/brochure/1-sundale-villas-tallaght-dublin-24/4472673

shadyslimshady · 02-06-2021 1:53pm

Ace2007 wrote: »

I do get it, likewise i get that there was a time you couldn't get a job in this country and your only option was to leave - which many leaving friends, family, your home town etc - and people did it because there was no other choice. They didn't sit on boards moaning about it all day - they got on with it.

Now there is a shortage in the supply of houses in certain areas, and people are saying it's the government this and the government that, but a simple solution is probably to drive max 1 hour away from the city and you'll find plenty of places.

Your friends claim that they can't get a mortgage, yet when i go onto myhome.ie, there are over 400 properties valued at under 250k,

https://www.myhome.ie/residential/dublin/property-for-sale?maxprice=250000

60k salary - 3.5x this is 210k, I expect them to save saved at least 40k over the years if they are serious about buying, and maybe even more.

Now you'll probably tell me there are no properties where they want to live, or the size that they want etc.

Edit: here's a 3 bedroom, 2 bathroom corner house on market for 195K, if this was in Dundrum or Clontarf - it would probably be going for 500k and folk would say that it was reasonable.
https://www.myhome.ie/residential/brochure/1-sundale-villas-tallaght-dublin-24/4472673

What does that have to do rebuilding ireland home loan? Your really in the wrong thread?

Yes they can afford to get mortgages outside Dublin, never said otherwise.

Theres a reason that house is going for 195K in Tallaght.

Rebuilding Ireland home loan

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