Rebuilding Ireland home loan

Tells wrote: »

Anyone used this yet? We've looked into it and there seems to be number of limitations in the application process. For example, the need to name and provide specific details on a particular property for the loan. The process can take up to 6-8 weeks to be approved.

http://rebuildingirelandhomeloan.ie

We applied for this after struggling to get a mortgage from the banks we were met with decline after decline with no clear triggers as to why, When we heard the scheme was announced we were over the moon we met all the criteria it appeared to be made for us. 5 weeks after application we received a letter from county council saying we had been DECLINED because they deemed us above the joint €75,000 threshold. We had a guaranteed income of €69,000 but they included unguaranteed overtime and unsocial hours done in attempts to attain a mortgage as guaranteed. We are appealing and fighting this however my first hand opinion is unfortunately this ironically called Rebuilding Ireland home loan is all a creative way to make the people of ireland THINK something is being done to help the middle working class

Plus it may take much longer than 4-6 weeks to be approved, you do not need to have a property found before applying just mark it TBA.

@jargarbo we have had the exact same experience taking almost three months to receive an answer to tell us we were over the threshold due to their calculations! I 100% support your opinion!

sweeney2014 wrote: »

Has anyone got it on a single income?

Not that I have heard but I applied on my own..

Bargain_Hound wrote: »

I was declined on single income, just barely.
There is one poster in the main thread for this scheme who has been approved.
I've heard through word of mouth that another couple were approved, can't verify how true though.

Do you mind me asking what they declined you on? Mine was based on the fact my p60 was higher for 2017 with extra hours worked to get deposit up despite not being guaranteed! I’m a working single parent but can’t get a mortgage but yet earn too much for social housing! It’s a mad world we are living in and completely defeats the purpose, reality is if I gave up my job I’d get a house!!!

SNNUS wrote: »

I think it does not offer mortgages to people like it was meant to, Maybe a couple on €74k and big deposit would get it.

How about €69,000 with 32 grand deposit, sparkling clear ICB, zero loans and in permanent pensionable employment? Sounds absolutely bizarre right nope that’s me!! The mind boggles Something extremely dodgy!!

SNNUS wrote: »

What? that is crazy. I do not understand how you were not approved because you did extra hours.. Did your P60 show 75k+?

If you don't get it no one will!

I went in with my daughters godfather( 10 year history both first time buyers in permanent, pensionable employment) our combined p60 was €77 thousand however our annual salary’s as per salary certs were €69 combined, clear history absolutely nothing else! They declined based on P60 for previous year, it’s near impossible to meet the ‘standards’ they are intentionally seeking declines!!

Yellowson88 wrote: »

Do you mind me asking what they declined you on? Mine was based on the fact my p60 was higher for 2017 with extra hours worked to get deposit up despite not being guaranteed! I’m a working single parent but can’t get a mortgage but yet earn too much for social housing! It’s a mad world we are living in and completely defeats the purpose, reality is if I gave up my job I’d get a house!!!

Well this might give you a giggle.

My P60 for 2017 was well below the threshold for a single applicant, but I received a small increase in salary tipping my salary certificate just over that threshold several weeks before applying.

The RI website/application conditions stated the thresholds were based on previous years P60 (2017), in which case I felt eligble to submit an application. It appears that this condition applied to neither of us. Close to 40k deposit, squeaky clean ICB, no loans/outgoings.

Got approved by 2 different Co.Co. for the full amount possible, our combined income is below the limit and we have a bit over 40k in savings. Took 6 weeks to get an answer from both (didn't apply at the same time).

If I may offer our experience:
- You can apply to multiple Co.Co. but each will be a separate full application (you may be able to convince the first council you apply to, to photocopy your stuff so you can keep the originals and use them again )
- As SNNUS said above, you don't need a property picked out, just mark it as TBA.
- We are both permanent full time employees.
- You must have evidence of regular savings, we have a savings account with a standing order on the current account to transfer x amount of money every month to it.
- If you get approved for the full amount, your monthly payment will be €1354, which includes the mandatory mortgage insurance that we have to buy from the council too - they like to see that you are able to pay this and have enough left to live on (we got it covered by rent+regular savings).
- They want to see if you have the money for the house deposit (max value of the house you can buy under this scheme is 320k so you should have 32k right there), and the additional costs like stamp duty, legal fees etc.
- Take the checklist on the form very seriously because both councils representatives went through it with us, piece by piece.
- This bit "Tenants in private rented accommodation must have a clear rent account for 6 months prior to applying, and be able to show a rent book or proof of payment" - we pay rent by standing order and it was sufficient to highlight the rent payments on the bank statement for this proof of payment.

HTH

sweeney2014 wrote: »

Thanks for the info. What did you use as evidence of insufficient offers of finance from two banks?

We went into 2 banks that we want to talk mortgages, they both did their calculations as they do, and made us a mortgage offer in writing. The amounts both offered were not enough to buy anything. We submitted these two letters.

EDIT: whatever you do, do not tell the bank that you're looking at the council scheme and need the letter for that! You want a mortgage from them. We've heard stories of people being given the run around instead of a letter because of this.

dynasoar wrote: »

Got approved by 2 different Co.Co. for the full amount possible, our combined income is below the limit and we have a bit over 40k in savings. Took 6 weeks to get an answer from both (didn't apply at the same time).

If I may offer our experience:
- You can apply to multiple Co.Co. but each will be a separate full application (you may be able to convince the first council you apply to, to photocopy your stuff so you can keep the originals and use them again )
- As SNNUS said above, you don't need a property picked out, just mark it as TBA.
- We are both permanent full time employees.
- You must have evidence of regular savings, we have a savings account with a standing order on the current account to transfer x amount of money every month to it.
- If you get approved for the full amount, your monthly payment will be €1354, which includes the mandatory mortgage insurance that we have to buy from the council too - they like to see that you are able to pay this and have enough left to live on (we got it covered by rent+regular savings).
- They want to see if you have the money for the house deposit (max value of the house you can buy under this scheme is 320k so you should have 32k right there), and the additional costs like stamp duty, legal fees etc.
- Take the checklist on the form very seriously because both councils representatives went through it with us, piece by piece.
- This bit "Tenants in private rented accommodation must have a clear rent account for 6 months prior to applying, and be able to show a rent book or proof of payment" - we pay rent by standing order and it was sufficient to highlight the rent payments on the bank statement for this proof of payment.

HTH

Congrats, that Mortgage protection is about €250 a month ? Seems very expensive

SNNUS wrote: »

Congrats, that Mortgage protection is about €250 a month ? Seems very expensive

No. The fix 2% option has €1221 for mortgage repayment and €133 for MPI, for 300 months.

Yellowson88 wrote: »

Do you mind me asking what they declined you on? Mine was based on the fact my p60 was higher for 2017 with extra hours worked to get deposit up despite not being guaranteed! I’m a working single parent but can’t get a mortgage but yet earn too much for social housing! It’s a mad world we are living in and completely defeats the purpose, reality is if I gave up my job I’d get a house!!!

I'm in the exact same position as you!

dynasoar wrote: »

No. The fix 2% option has €1221 for mortgage repayment and €133 for MPI, for 300 months.

It's 133 per month for mortgage protection?!

dynasoar wrote: »

Correct. I only have guesses as to why. Maybe because they are not a regular bank but a council? Or they try to recover some of the money they lose on the low interest...?

It's the only downside to the loan.. Should be able to source MPI separately.

quadrifoglio verde wrote: »

133 a month for MPI? And its mandatory to take it out with the council.
Yet any normal council mortgage you're allowed shop around for your insurance.
Sounds bonkers.

So basically it completely destroys any savings that are possible due to the reduced interest rates?

Makes absolutely no sense whatsoever!