Rebuilding Ireland home loan

Jafin

Throwdown wrote: »

Hi,

I've read through loads of pages and didn't see this mentioned at all, so sorry if it has.

Myself and my GF will hopefully be applying start of 2021. Fingers crossed it's still going.

My question is around the credit rating. Neither of us has ever had a credit card and fortunately neither of us has needed a loan.

Although that feels like a good thing to me, will this negatively affect us as we won't really have a credit history?

If so, would it be wise for us to get a credit card just for the odd little purchase so we can show we have some sort of credit history?

Any clarity on this if anyone's been in a similar situation would be much appreciated.

You should be fine. I've never had a loan or a credit card in my life and when I met with the members of staff who take in the application they went over everything with me and didn't ask me anything about a credit history. As long as you have evidence that you've saved up the deposit and are putting aside enough savings regularly to cover projected repayments then there shouldn't be any issue.

That being said, I have not finished the process yet, my application is due to go to the credit committee at the next meeting, so if anyone else has had a different experience to mine who is further along in the process then I encourage them to give their experience.

AlmightyCushion

Throwdown wrote: »

Hi,

I've read through loads of pages and didn't see this mentioned at all, so sorry if it has.

Myself and my GF will hopefully be applying start of 2021. Fingers crossed it's still going.

My question is around the credit rating. Neither of us has ever had a credit card and fortunately neither of us has needed a loan.

Although that feels like a good thing to me, will this negatively affect us as we won't really have a credit history?

If so, would it be wise for us to get a credit card just for the odd little purchase so we can show we have some sort of credit history?

Any clarity on this if anyone's been in a similar situation would be much appreciated.

Building a credit history is an American thing. It doesn't really apply here.

Throwdown

Thanks for the responses, that's really good to know. I wasn't keen on the CC idea, so i'm glad the credit history aspect isn't compulsory.

Best of luck with your applications

phobia2011

Hi,

I received an offer to purchase our council house today, just contacted a solicitor to find out fees.

Being quoted 1300 + vat for professional fees.
All in approx 4000

Is this average cost?

SarahKK1987

Yeah that sounds about right. I assume it would be much similar to buying any property. We have been quoted 4750 for our house purchase.

phobia2011 wrote: »

Hi,

I received an offer to purchase our council house today, just contacted a solicitor to find out fees.

Being quoted 1300 + vat for professional fees.
All in approx 4000

Is this average cost?

Cheesepuffs

Finally our application has been approved and letter of offer posted.

surrender monkey

phobia2011 wrote: »

Hi,

I received an offer to purchase our council house today, just contacted a solicitor to find out fees.

Being quoted 1300 + vat for professional fees.
All in approx 4000

Is this average cost?

No that sounds way off. 1300 plus vat is ok but registration fees are lower than a private house and stamp duty is only 100 euro. Perhaps your solicitor is not aware of the diffetence

Homedream

Cheesepuffs wrote: »

Finally our application has been approved and letter of offer posted.

Congrats best of luck

Graham

surrender monkey wrote: »

stamp duty is only 100 euro

Is that something specific to the purchase of property from a council?

surrender monkey

Graham wrote: »

Is that something specific to the purchase of property from a council?

Yes it's provided for in the stamp duties consolidation act ! Land registry also charge lower registration fees !

Maz2016

Homedream wrote: »

Declined mpi through council and now been declined royal london mpi, dont no what to do ��

Any luck getting an insurer ?

Graham

surrender monkey wrote: »

Yes it's provided for in the stamp duties consolidation act ! Land registry also charge lower registration fees !

Thanks SM, useful to know. You learn something new every day.

Homedream

Maz2016 wrote: »

Any luck getting an insurer ?

No we have tried loads of places or 6 months is nearly up so after all this time, money and stress i think we are nearing the end but wont give up till we have to.

Maz2016

Homedream wrote: »

No we have tried loads of places or 6 months is nearly up so after all this time, money and stress i think we are nearing the end but wont give up till we have to.

Did you try pulse? I know someone for accepted with them last week

Homedream

Maz2016 wrote: »

Did you try pulse? I know someone for accepted with them last week

We tried to find a broker that deals with but couldnt find one asked another broker but he said they only do cover for 10 years, we need it for 30.

Maz2016

Homedream wrote: »

We tried to find a broker that deals with but couldnt find one asked another broker but he said they only do cover for 10 years, we need it for 30.

Pulse do it for 30. You need to go direct though

Maz2016

Homedream wrote: »

We tried to find a broker that deals with but couldnt find one asked another broker but he said they only do cover for 10 years, we need it for 30.

Pulse do it for 30. You need to go direct though

Homedream

Maz2016 wrote: »

Pulse do it for 30. You need to go direct though

Oh its all so confusing we rang them and said we have to go through a broker to get insurance. Spent ages trying to find a broker and one broker saud they dont deal with them coz they only do it for 10 years

Dolbhad

phobia2011 wrote: »

Hi,

I received an offer to purchase our council house today, just contacted a solicitor to find out fees.

Being quoted 1300 + vat for professional fees.
All in approx 4000

Is this average cost?

Stamp Duty is €100. Land Registry charge €130 for registering transfer. If your getting a mortgage that’s €175. Then you have searches and commissioner for oaths - sounds right. I think €1300 actually is a good price (depending on where your located)

Barbara1234

Finally got reply unfortunately mortgage refused...bank happy to borrow 130k while council nothing. Well secured job 41k a year. Good credit history. Rent 1100 plus 300e saving monthly. Don’t understand this scheme

hairyprincess

Barbara1234 wrote: »

Finally got reply unfortunately mortgage refused...bank happy to borrow 130k while council nothing. Well secured job 41k a year. Good credit history. Rent 1100 plus 300e saving monthly. Don’t understand this scheme

Did they give you any indication as to why they refused you?

Underground

Has anyone from Dublin used this scheme? I had a look at applying through it but it doesn't seem to be fit for purpose for someone looking to buy in Dublin.

The credit approval process alone takes months for them to complete, so if you're hoping for this scheme to give you a mortgage and you're competing against someone who gets approval from a bank in c. 2 weeks, I don't see how this is useful.

Sure, if it's a property in a rural part of the country that's been listed for months, it might work. A 3 bed semi / 2 bed apartment in suburban Dublin generally just will not sit on the market long enough for this scheme to be useful to anyone looking to buy in those areas.

The application had to be property specific (i.e. it could not be done on a "house hunter" basis) last time I looked at this, is this still the case?

Add to that the fact that last time I checked you have to use the council's choice for mortgage protection insurance and are not permitted to sort this out yourself privately, and I just don't see the point.

BKWDR

Underground wrote: »

Has anyone from Dublin used this scheme? I had a look at applying through it but it doesn't seem to be fit for purpose for someone looking to buy in Dublin.

The credit approval process alone takes months for them to complete, so if you're hoping for this scheme to give you a mortgage and you're competing against someone who gets approval from a bank in c. 2 weeks, I don't see how this is useful.

Sure, if it's a property in a rural part of the country that's been listed for months, it might work. A 3 bed semi / 2 bed apartment in suburban Dublin generally just will not sit on the market long enough for this scheme to be useful to anyone looking to buy in those areas.

The application had to be property specific (i.e. it could not be done on a "house hunter" basis) last time I looked at this, is this still the case?

Add to that the fact that last time I checked you have to use the council's choice for mortgage protection insurance and are not permitted to sort this out yourself privately, and I just don't see the point.

That is one way of looking at it however the banks give you a quick decision but then underwrite after, where as the local authorities do all the underwriting at the front stage that's why I take takes as long as it does for decision plus I don't think the delays were months but now covid-19 is changed all that but that's what the bank also are experiencing
But you have to remember that these are government backed sub prime loans been giving out so there has to be some level of Greater scrutiny that will be seen in the banks

Maybe if you turn the process back to front where if you had your approval then you go hunting for 6-months but you won't get that approval in principle in 5-minutes like the bank offers but ultimately they have to underwrite alone anyway

The benefits are there on the thread and on the website you get a fixed rate for the duration of the loan, you're dealing with the local authority which might be a bit easier than dealing with a bank yes the mpi I think it's on the higher side but I think on this thread people said it covers more than the private companies cover and there is security in that. Paying a fixed low rate for 30 years is the big draw and you can't get it elsewhere. You also get a better multiplier than the banks

beanyb

Underground wrote: »

Has anyone from Dublin used this scheme? I had a look at applying through it but it doesn't seem to be fit for purpose for someone looking to buy in Dublin.

The credit approval process alone takes months for them to complete, so if you're hoping for this scheme to give you a mortgage and you're competing against someone who gets approval from a bank in c. 2 weeks, I don't see how this is useful.

Sure, if it's a property in a rural part of the country that's been listed for months, it might work. A 3 bed semi / 2 bed apartment in suburban Dublin generally just will not sit on the market long enough for this scheme to be useful to anyone looking to buy in those areas.

The application had to be property specific (i.e. it could not be done on a "house hunter" basis) last time I looked at this, is this still the case?

Add to that the fact that last time I checked you have to use the council's choice for mortgage protection insurance and are not permitted to sort this out yourself privately, and I just don't see the point.

It doesn't have to be property specific. You can apply with TBA on the application form where it asks for the address and then once you go sale agreed they will check the property you've selected fits their criteria. I applied with Dublin City Council in January and had approval from them a month later.

Barbara1234

hairyprincess wrote: »

Did they give you any indication as to why they refused you?

Yes, inconsistent savings. Had min 50a months to lump sums of 3000. Rent paid regularly each month. Think that they like to see same amount every month. Don’t really know

Salanky

Barbara1234 wrote: »

Yes, inconsistent savings. Had min 50a months to lump sums of 3000. Rent paid regularly each month. Think that they like to see same amount every month. Don’t really know

They want you to be saving enough to cover the cost of the repayments. I got refused the first time for insufficient evidence of repayment capacity and set up a standing order for the same amount every month. Reapplied after maybe 7 months and got approved. I live with my parents so don't pay rent but do pay money monthly so I set that as a standing order too. I do think they take your rent money into consideration. Don't give up on it, sort out your accounts and try again. I'm now in an extension to my second application and hoping to review a house this week to put an offer in. I had thought I would never get to this point but here I am so don't lose faith in it just yet.

Maz2016

Barbara1234 wrote: »

Yes, inconsistent savings. Had min 50a months to lump sums of 3000. Rent paid regularly each month. Think that they like to see same amount every month. Don’t really know

That would make sense. My cousin got refused on the same grounds. Her rent is €650 a month (old cottage) and some months she saved €50 while others it was €2k. She actually saved 12k in the year. They wanted consistency

hairyprincess

Maz2016 wrote: »

That would make sense. My cousin got refused on the same grounds. Her rent is €650 a month (old cottage) and some months she saved €50 while others it was €2k. She actually saved 12k in the year. They wanted consistency

That’s where I’m going to get refused then so. It seems a silly way to do things, obviously some months you are going to have a better capacity than others.

Did your cousin reapply?

Whodanoob

What do people think?Does anyone foresee RBI changing with the new government?

Maz2016

hairyprincess wrote: »

That’s where I’m going to get refused then so. It seems a silly way to do things, obviously some months you are going to have a better capacity than others.

Did your cousin reapply?

She got to speak to a nice woman. She was advised to reapply in 8 months which will be in August. The proceeding 4 months were considered consistent savings. It’s where I’ll fall down too. I put in lower amounts last August and sept as I went on holidays so I’ll have to wait until October now.