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Rebuilding Ireland home loan

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Comments

  • Registered Users Posts: 30 suemurray


    Cazzums wrote: »
    I was originally going to put in for 240k and chance my luck in getting that but was advised to just write on the application “applying for the maximum amount available to me”. So I got around 30k less then what I hoped for but it’s onviously still much better than the bank offers! The online calculator tells you what you can afford however it doesn’t take into account the mortgage protection that you must take off the council which is approx €100 per month on top of repayments so the calculator isn’t ideal at all.

    Was the €30k less based on your overall income and expenditure or based on the 100 insurance premium? Do they consider all income outside of gross salary, such as overtime, child benefit etc ?
    Thanks


  • Registered Users Posts: 48 Cazzums


    suemurray wrote: »
    Was the €30k less based on your overall income and expenditure or based on the 100 insurance premium? Do they consider all income outside of gross salary, such as overtime, child benefit etc ?
    Thanks

    It was a mixture of both really. They only took I think around 50% of my overtime into account and obviously then reduced my offer as they added the insurance to the repayments. Child benefit and maintenance are not included at all so I was told anyway!


  • Registered Users Posts: 1,375 ✭✭✭bri007


    Hi all,

    Anyone know for the employment part, for a couple does the employment for 1 year working have to be permanent or just continuously working.

    My girlfriend has a permanent job and is continuously working for over 2 years so she would meet the criteria, however I am not working a full year yet but will be soon. My job isn't permanent but it's continuous as in on going contract.

    Would we still meet the criteria or would my job mess it up?

    Thanks in advance


  • Registered Users Posts: 30 suemurray


    Think only one borrower has to be in continuous employment, they also removed the permanent requirement of that employment


  • Registered Users Posts: 1,375 ✭✭✭bri007


    Thanks for the reply, that’s great I was worrying there, banks are requesting we are both in the same job two years so the rebuilding Ireland scheme is the last option we have or wait another few years. Unfortunately time is against us so we need to get a place hopefully by next year!
    suemurray wrote: »
    Think only one borrower has to be in continuous employment, they also removed the permanent requirement of that employment


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  • Registered Users Posts: 30 suemurray


    Haven are quite flexible when it comes to employment status etc but again they are bound by central bank rules


  • Registered Users Posts: 1,375 ✭✭✭bri007


    Yeah we looked at Haven, we contacted a reallly good broker, he did his best but because I am not permanent and have not been working the last number of years due to going back to colllege full time and only working a year continuously since I graduated the banks won’t look at me, only my partners income!

    They are requesting me to be working at least two years in same job, which more than likely won’t happen as I am through an agency but the profession I am in I will always have work but it’s just unfortunate.

    The rebuilding Ireland scheme appears to be out only option at present.

    I just messaged them there, they said the permanent employment requirement has been removed from the criteria 3 weeks ago, so it’s just now continuous.

    I forgot to ask them, our p60 last year won’t have a lot for me as I was only working 6 months! Also, our current salaries have increased this year and if they look at our layslips for 2018 we would be over the limit of 75,000, coming in currently at €80,000! Hopefullly they only account for 2017, but then my p60 only shows 6 months work so around €16k, we wouldn’t get full amount based on mine and my girlfriends!

    quote="suemurray;107082011"]Haven are quite flexible when it comes to employment status etc but again they are bound by central bank rules[/quote]


  • Registered Users Posts: 3 mytom


    Hi ,
    We have got mortgage approved , we got letter of `draft letter of loan offer ` We have at now one month to accept it , we have already done this in writing letter to County Council .
    They are going to send official documents to our solicitor after 3 weeks .
    My solicitor send me message :
    "Please note that every letter of loan offer is made up of two sets of conditions. There are General Conditions which apply to each letter of loan offer and special conditions which apply to your individual circumstances. In this document, there are two special conditions.

    The first special condition sets out that the advancement of the money from the Local Authority is subject to the Local Authority being in funds to do so. This is obviously concerning as, it would be much better if there was no doubt as to whether or not the money will be available. "

    I'm just wondering how long it takes from approval to actually drawing down the mortgage ?
    when my solicitor will be able to finalize transaction ?

    We are buying new house they warn us that we have only one month to sign the contract , if we will not do this, property might be back to market .


  • Registered Users Posts: 1 Sarah1969


    I left in form HPL1 at inland revenue to be signed by commissioner for both local authority housing list plus the rebuilding ireland application.
    I've since received the form and letter explaining that I was in receipt of Mortgage interest relief therefore form can't be signed.

    I'm legally separated, the family home was sold earlier this year and I've spent almost 3 years living in rented accommodation so it looks like my ex has been claiming tax relief, does anyone know if there's a way around this as I've offered to buy house and just can't get a mortgage.

    Thank you


  • Registered Users Posts: 62 ✭✭Coinsguy


    mytom wrote: »
    Hi ,
    We have got mortgage approved , we got letter of `draft letter of loan offer ` We have at now one month to accept it , we have already done this in writing letter to County Council .
    They are going to send official documents to our solicitor after 3 weeks .
    My solicitor send me message :
    "Please note that every letter of loan offer is made up of two sets of conditions. There are General Conditions which apply to each letter of loan offer and special conditions which apply to your individual circumstances. In this document, there are two special conditions.

    The first special condition sets out that the advancement of the money from the Local Authority is subject to the Local Authority being in funds to do so. This is obviously concerning as, it would be much better if there was no doubt as to whether or not the money will be available. "

    I'm just wondering how long it takes from approval to actually drawing down the mortgage ?
    when my solicitor will be able to finalize transaction ?

    We are buying new house they warn us that we have only one month to sign the contract , if we will not do this, property might be back to market .

    I thought its valid for 6 months?


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  • Registered Users Posts: 1,633 ✭✭✭djan


    Could someone who has applied for or has been accepted, confirm if it's possible to overpay or pay off early on the fixed rates? If so, what are the fees/maximums?


  • Registered Users Posts: 30 suemurray


    Sarah1969 wrote: »
    I left in form HPL1 at inland revenue to be signed by commissioner for both local authority housing list plus the rebuilding ireland application.
    I've since received the form and letter explaining that I was in receipt of Mortgage interest relief therefore form can't be signed.

    I'm legally separated, the family home was sold earlier this year and I've spent almost 3 years living in rented accommodation so it looks like my ex has been claiming tax relief, does anyone know if there's a way around this as I've offered to buy house and just can't get a mortgage.

    Thank you
    hi this scheme is for first time buyers only, unfortunately if you have been named on another mortgage previously you do not qualify.


  • Registered Users Posts: 30 suemurray


    djan wrote: »
    Could someone who has applied for or has been accepted, confirm if it's possible to overpay or pay off early on the fixed rates? If so, what are the fees/maximums?

    There is a sample formula of the fixed rate exit fee calculation on the RBI website. It’s similar to that of any bank. You can’t over pay a fixed rate mortgage.


  • Registered Users Posts: 1,633 ✭✭✭djan


    suemurray wrote: »
    There is a sample formula of the fixed rate exit fee calculation on the RBI website. It’s similar to that of any bank. You can’t over pay a fixed rate mortgage.

    Thanks, I managed to find it there. For anyone interested its based on the coco's cost of lending:
    In the example below, a borrower takes out a 25-year fixed mortgage at a rate of 2.00% on 1st February 2018. On 1st February 2033 (with 10 years remaining), the mortgage outstanding is €90,000 and the borrower opts to break out of the fixed rate. The breakage cost calculation is:

    Amount [A] = €90,000
    Original local authority cost of funds on 1 February 2018 = 1.50%
    Interest rate for local authority cost of funds for remaining term of 10 years on 1 February 2033 [C] = 1.25%
    Remaining term in days [T] = 3,652 days
    Breakage Calculation = (A x (B-C)) x T divided by 365 = (€90,000 x (1.50% - 1.25%)) x 3,652/365 = €2,251.23
    In this case the borrower would be charged a breakage fee of €2,251.23

    As an aside, majority of Banks allow some overpayments without penalties on fixed rate mortgages. Good to see that the RI breakage fees are in line with the recently legislated for amounts based on the cost of lending.


  • Registered Users Posts: 86 ✭✭rachieqtpie


    djan wrote: »
    Thanks, I managed to find it there. For anyone interested its based on the coco's cost of lending:
    In the example below, a borrower takes out a 25-year fixed mortgage at a rate of 2.00% on 1st February 2018. On 1st February 2033 (with 10 years remaining), the mortgage outstanding is €90,000 and the borrower opts to break out of the fixed rate. The breakage cost calculation is:

    Amount [A] = €90,000
    Original local authority cost of funds on 1 February 2018 = 1.50%
    Interest rate for local authority cost of funds for remaining term of 10 years on 1 February 2033 [C] = 1.25%
    Remaining term in days [T] = 3,652 days
    Breakage Calculation = (A x (B-C)) x T divided by 365 = (€90,000 x (1.50% - 1.25%)) x 3,652/365 = €2,251.23
    In this case the borrower would be charged a breakage fee of €2,251.23

    As an aside, majority of Banks allow some overpayments without penalties on fixed rate mortgages. Good to see that the RI breakage fees are in line with the recently legislated for amounts based on the cost of lending.

    From a friend that works in boi they allow fixed rate mortgages to be paid up to 10% extra per month, did you see that in the t&cs?
    Also if you were to come into a lump sum is it posssible to pay it off pay the breakage fee and resume your mortgage or would you have to re-apply?


  • Registered Users Posts: 3 mytom


    Quote:
    Originally Posted by mytom View Post
    Hi ,
    We have got mortgage approved , we got letter of `draft letter of loan offer ` We have at now one month to accept it , we have already done this in writing letter to County Council .
    They are going to send official documents to our solicitor after 3 weeks .
    My solicitor send me message :
    "Please note that every letter of loan offer is made up of two sets of conditions. There are General Conditions which apply to each letter of loan offer and special conditions which apply to your individual circumstances. In this document, there are two special conditions.

    The first special condition sets out that the advancement of the money from the Local Authority is subject to the Local Authority being in funds to do so. This is obviously concerning as, it would be much better if there was no doubt as to whether or not the money will be available. "

    I'm just wondering how long it takes from approval to actually drawing down the mortgage ?
    when my solicitor will be able to finalize transaction ?

    We are buying new house they warn us that we have only one month to sign the contract , if we will not do this, property might be back to market .
    I thought its valid for 6 months?

    Yes it is for 6 months , but first you have to accept draft offer and for this you have one month .

    Is anyone got official loan offer documents from County Council after one cool month break time ?


  • Registered Users Posts: 1,633 ✭✭✭djan


    From a friend that works in boi they allow fixed rate mortgages to be paid up to 10% extra per month, did you see that in the t&cs?
    Also if you were to come into a lump sum is it posssible to pay it off pay the breakage fee and resume your mortgage or would you have to re-apply?

    Yup, can confirm this too. For over payments with Boi, it's the greater of 65 EUR and 10% of monthly repayments.

    Not sure how it would be with the breakage fee on the council scheme as the fixation period is for the duration of the loan. Usually banks require you to reapply AFAIK, meaning new applications to exemptions etc.


  • Registered Users Posts: 29 LK1988


    has anybody applied in South Dublin Co Council and do you have any advice? how long did it take etc?


  • Registered Users Posts: 30 suemurray


    I got an offer letter after 9 weeks - wasn’t the full amount I applied for but I can make do. Be prepared to wait and factor in the compulsory MPI into your repayment capability as the underwriter does. Whilst I didnt get the amount I wanted, I still got substantially more than what the banks are offering


  • Registered Users Posts: 29 LK1988


    was that from South Dublin CoCo?


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  • Registered Users Posts: 40 Whodat19


    suemurray wrote: »
    I got an offer letter after 9 weeks - wasn’t the full amount I applied for but I can make do. Be prepared to wait and factor in the compulsory MPI into your repayment capability as the underwriter does. Whilst I didnt get the amount I wanted, I still got substantially more than what the banks are offering

    Did you put in an amount you wanted & they offered you less?


  • Registered Users Posts: 30 suemurray


    LK1988 wrote: »
    was that from South Dublin CoCo?

    No sorry, it was Wicklow


  • Registered Users Posts: 30 suemurray


    Whodat19 wrote: »
    Did you put in an amount you wanted & they offered you less?

    Yes I had a property in mind and assumed my affordability based on the calculator and also based on initially believing all income was considered (not the case)


  • Registered Users Posts: 1,375 ✭✭✭bri007


    If weekly/monthly salary isn't consistent each pay date, do they take an average from it and calculate yearly salary then?

    So one week say €500, following week €550 and so on, as in factor overtime into it as well?


  • Closed Accounts Posts: 4,464 ✭✭✭Ultimate Seduction


    Does the 10% rule still apply with this for ftb? Would be looking for 100k. Single. Earn 26k+ overtime. No debts.


  • Registered Users Posts: 168 ✭✭FirefighterT7


    Any retained firefighters get approval? And would the fact of them being a county council employee with the Fire Service help in that they would have access to all proof of earnings?


  • Moderators, Computer Games Moderators, Sports Moderators Posts: 14,526 Mod ✭✭✭✭Darkglasses


    Any retained firefighters get approval? And would the fact of them being a county council employee with the Fire Service help in that they would have access to all proof of earnings?

    Just so you're aware - the council staff looking at your loan application should not really have any access to your salary information, especially with GDPR now in force. Only what you provide them with.


  • Registered Users Posts: 168 ✭✭FirefighterT7


    Thanks Darkglasses, I wasn’t aware of this.. the reason I ask is because mainstream banks won’t lend to us as we are classed as part time, even though we’re on call 24/7, 365..


  • Registered Users Posts: 2,469 ✭✭✭Titzon Toast


    God, this thread makes for some grim reading. I'm just about to begin applying for this scheme myself. I wish everyone here good luck with their applications.


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  • Registered Users Posts: 47 coolio83


    Hi, I just wondered if anyone has gone through the application process for a rebuilding Ireland local authority mortgage, also their experience/outcome/waiting time etc. Really appreciate any feedback, TIA.


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