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Rebuilding Ireland home loan

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Comments

  • #2192
    Whodanoob
    Registered Users Posts: 40 ✭Whodanoob


    BKWDR wrote: »
    They had to reborrow the funds. It was always going to be a new rate once the initial fund was exhausted.

    Does that mean that the rate might go down again? Or is it likely to stay where it is?


  • #2193
    BKWDR
    Registered Users Posts: 2,172 ✭✭✭BKWDR


    Whodanoob wrote: »
    Does that mean that the rate might go down again? Or is it likely to stay where it is?

    Doubtful. They didn't bank on the scheme being so popular so the initial 200m for 3 years in effect only lasted 1 year.
    210m will future proof it for a couple years. But in effect by increasing the rate it could make it less affordable as the instalment could be more in line with what people are paying in rent, 1500e pm


  • #2194
    Salanky
    Registered Users Posts: 86 ✭✭Salanky


    The rate going up essentially means I won't be able to buy anything. I wouldnt mind but I'm not even looking to buy in dublin. Iv got approved until april but if they decode the interest rates when you draw down I wont be able to buy. Its a 14000 difference which would drop my money to 127k from 141k. Still more than the banks but not gonna be enough to get anything. Guess I may continue saving for another few years and see what scheme is going then.


  • #2195
    Sd2011
    Registered Users Posts: 14 ✭Sd2011


    Has anyone got approved with sending in bank account with only 6 months savings?


  • #2196
    Shivvs
    Registered Users Posts: 11 ✭Shivvs


    Just looking at some of the banks mortgage calculators, if I could get an LTI exemption, I would now get the same amount from the banks at a lower interest rate.

    Adding in the additional cost of RBI mortgage protection plan, This “affordable” home loan scheme is now a joke.

    Well done FG, just in time for an election too.


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  • #2197
    Tumbleweed2
    Registered Users Posts: 70 ✭✭Tumbleweed2


    Shivvs wrote: »
    Just looking at some of the banks mortgage calculators, if I could get an LTI exemption, I would now get the same amount from the banks at a lower interest rate.

    Adding in the additional cost of RBI mortgage protection plan, This “affordable” home loan scheme is now a joke.

    Well done FG, just in time for an election too.

    This may be true, but unfortunately it is an "if" situation.
    Banks get a certain discretion with exceptions and they are not guaranteed.
    If you don't want to avail of it apply this month, they only got their allocation and wont be maxed out yet. I applied April last year prior to RBI, and was advised they met their maximum allocation for exceptions to LTI policy and they only had exceptions for second time buyers on the 80% equity rule.


  • #2198
    Scr88
    Registered Users Posts: 12 ✭Scr88


    According to the rebuilding Ireland home loan online helpline desk this morning "you should be fine if your application was submitted before the 15th of January". This is in respect of the new interest rates. So they are unsure themselves who these new rates apply to. Very frustrating.


  • #2199
    BKWDR
    Registered Users Posts: 2,172 ✭✭✭BKWDR


    Scr88 wrote: »
    According to the rebuilding Ireland home loan online helpline desk this morning "you should be fine if your application was submitted before the 15th of January". This is in respect of the new interest rates. So they are unsure themselves who these new rates apply to. Very frustrating.

    That's correct, you will be fine if you had your application lodged before the 15th. The wording on the site is standard lingo for variable rate mortgages but you will probably find them remove it or re-word it.

    If your application was lodged prior to th 15th the calculator your LA did for you was on the old rate and thats what would have been sent to the Underwriter for assessment.


  • #2200
    DanyTargaryen
    Registered Users Posts: 29 ✭DanyTargaryen


    Karl12byrne wrote: »
    Hi Dany I see you said you got your approval in July how long did it take from the application submitted to getting your approval.

    I submitted an application in November 2019 and I have recently received an email requiring more info sent it back but just waiting now 😬I also spied to SDCC and was just wondering have you any tips or advise for the process thanks in advance

    Karl Byrne

    I applied in mid Febuary 2019 and then got my approval letter in July 2019. This was in the midst of all the news articles about the funding running out. When I initially applied they said 4-6 weeks, but then a week or two later the news broke. I wrote to my local TD to try and speed things up. I got a reply back but I can't tell if it really made a difference at all, the letter could have arrived in mid July anyway.


  • #2201
    rqc1i3ovl5uxt6
    Closed Accounts Posts: 14 ✭rqc1i3ovl5uxt6


    The new rates are a real kick in the teeth!

    Anyone apply to Galway City Council or Galway County Council?

    How long did it take to get approval for your application(s)?


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  • #2202
    givyjoe
    Registered Users Posts: 3,287 ✭✭✭givyjoe


    Jagger Salty Prism wrote: »
    The new rates are a real kick in the teeth!

    Anyone apply to Galway City Council or Galway County Council?

    How long did it take to get approval for your application(s)?
    Its sickening alright. It's not like the cost of borrowing has increased recently. Seems to be a really bizarre way of fixing the problem of demand exceeding supply (of loans). Let's just make the rates much less desirable.


  • #2203
    scheister
    Registered Users Posts: 1,299 ✭✭✭scheister


    givyjoe wrote: »
    Its sickening alright. It's not like the cost of borrowing has increased recently. Seems to be a really bizarre way of fixing the problem of demand exceeding supply (of loans). Let's just make the rates much less desirable.

    Yea it is very much an Irish solution to an Irish problem. As this is aimed at people who have borderline ability to buy a house offering less money is counter intuitive. To me there was always once simply way to sort the issue which was to offer a set amount of money per year. As it stands will be applying late this year but they are not offering any safety of what I will be applying for come the Autumn.


  • #2204
    Sulli83
    Registered Users Posts: 15 ✭Sulli83


    My partner and myself received an offer of 288k, which we accepted and are currently trying to find a suitable property.

    The application states clearly that our interest rate will be set at time of drawn down and is subject to change. It seems we will be paying the increased rate, which makes a huge difference. Is this the case?


  • #2205
    kotac24
    Registered Users Posts: 10 ✭kotac24


    @Sulli83 Almost same situation here, first approval in December and i got my sale agreed pack just day before they announced the increase on 14.01. I guess I am still hoping we will get the old rates... :/
    Will send an email to Fingal council on monday regarding this...


  • #2206
    Hudur
    Registered Users Posts: 34 ✭Hudur


    It got to the news also:

    https://www.independent.ie/business/personal-finance/property-mortgages/huge-increase-in-interest-rate-on-government-mortgage-scheme-38871150.html

    https://www.rte.ie/news/business/2020/0117/1108142-interest-rate-hike-in-states-home-loan-scheme/


  • #2207
    Sulli83
    Registered Users Posts: 15 ✭Sulli83


    Surely they will have to revisit the excessive mortgage protection which is compulsory with the new rates. Its multiple times more expensive than sourcing your own mortgage protection.

    The new rates will bring our monthly repayments up to almost 1400. The only way the mortgage appears to be benefitting us is through bypassing the central bank income to loan ratio restrictions.


  • #2208
    thomasdylan
    Closed Accounts Posts: 514 ✭✭✭thomasdylan


    Shivvs wrote: »
    Just looking at some of the banks mortgage calculators, if I could get an LTI exemption, I would now get the same amount from the banks at a lower interest rate.

    Adding in the additional cost of RBI mortgage protection plan, This “affordable” home loan scheme is now a joke.

    Well done FG, just in time for an election too.

    I don't think there's any bank that does a 25 or 30 year fixed rate that is anywhere as good as the rebuilding Ireland home loan. Are you comparing a short term fixed rate with the banks to this?

    And someone qualifying for this scheme might not get a LTI exemption from the banks.

    I don't think it's a joke at all if you can get it.


  • #2209
    Sulli83
    Registered Users Posts: 15 ✭Sulli83


    @kotac24 I read that Eoghan Murphy said the increase would only affect new customers. Unsure if that means people who have already drawn down, the what stage of process do they consider you an existing customer. Surely an increase of such a large amount would have to see applicants reassessed by the underwriters before mortgage was drawn down.


  • #2210
    BKWDR
    Registered Users Posts: 2,172 ✭✭✭BKWDR


    kotac24 wrote: »
    @Sulli83 Almost same situation here, first approval in December and i got my sale agreed pack just day before they announced the increase on 14.01. I guess I am still hoping we will get the old rates... :/
    Will send an email to Fingal council on monday regarding this...

    If you're approved already you are on the old rate.


  • #2211
    BKWDR
    Registered Users Posts: 2,172 ✭✭✭BKWDR


    Sulli83 wrote: »
    Surely they will have to revisit the excessive mortgage protection which is compulsory with the new rates. Its multiple times more expensive than sourcing your own mortgage protection.

    The new rates will bring our monthly repayments up to almost 1400. The only way the mortgage appears to be benefitting us is through bypassing the central bank income to loan ratio restrictions.

    They will never revist the MPI scheme. The rate can change but they tender for it every 3 or 5 years. From what I see its a good scheme that covers a raft of customers that are what the insurance industry would class as medium to high risk borrowers.

    Like someone has said, you won't get a fixed rate for the whole mortgage elsewhere. Ulsterbanks 10 year fixed looks good but you won't be able to borrow the amount you need through them as they aren't as generous as the rihl calculator


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  • #2212
    Sulli83
    Registered Users Posts: 15 ✭Sulli83


    BKWDR wrote: »
    If you're approved already you are on the old rate.


    Hope you are right, nothing would surprise me at this point though with the current FG government.


  • #2213
    BKWDR
    Registered Users Posts: 2,172 ✭✭✭BKWDR


    Sulli83 wrote: »
    Hope you are right, nothing would surprise me at this point though with the current FG government.

    You'll be fine. If you need to reapply if your provisional offer expires the new rate will be applied though


  • #2214
    beanyb
    Registered Users Posts: 1,149 ✭✭✭beanyb


    Cllr. Alison Gilliland, chair of the housing committee in Dublin City Council, has shared on Twitter what seems to be the circular sent around to the councils about the rate changes. It confirms that anyone who applied before 15th January will have the old rates.

    https://twitter.com/AlisonGilliland/status/1218132089238892545?s=20

    Glad I went in on the 3rd!!


  • #2215
    xxsammyxx085
    Registered Users Posts: 64 ✭✭xxsammyxx085


    Hi Samantha,

    The higher interest rates are effective for applications received after 15th January 2020. You will still be eligible for the old rate i.e. 2.0% fixed x 25 years or 2.25% fixed x 30 years.


  • #2216
    Suebermo82
    Registered Users Posts: 6 ✭Suebermo82


    Hi, I know this thread was a while ago, but I am looking for anyone who made an application for SDCC through the Rebuilding Ireland Scheme. I am a single applicant and although they approved my loan, I am having great difficulty getting the Insurance they require. I did not qualify for their scheme and was asked to source my own. They are asking for both Mortgage Protection Insurance and Income Protection Insurance. I am only getting approved on one and the council are adamant they won’t proceed without both in place.
    I am now sale agreed on a property and it looks like I will have to let it go as I cannot get both. I am just wondering as every I say it too seems to think that it is excessive for them to require both. Was everyone asked for both or is it simply as I am a single applicant?


  • #2217
    Suebermo82
    Registered Users Posts: 6 ✭Suebermo82


    Hi, I know this thread was a while ago, but I am looking for anyone who made an application for SDCC through the Rebuilding Ireland Scheme. I am a single applicant and although they approved my loan, I am having great difficulty getting the Insurance they require. I did not qualify for their scheme and was asked to source my own. They are asking for both Mortgage Protection Insurance and Income Protection Insurance. I am only getting approved on one and the council are adamant they won’t proceed without both in place.
    I am now sale agreed on a property and it looks like I will have to let it go as I cannot get both. I am just wondering as every I say it too seems to think that it is excessive for them to require both. Was everyone asked for both or is it simply as I am a single applicant?


  • #2218
    deedee26
    Registered Users Posts: 48 ✭deedee26


    Suebermo82 wrote: »
    Hi, I know this thread was a while ago, but I am looking for anyone who made an application for SDCC through the Rebuilding Ireland Scheme. I am a single applicant and although they approved my loan, I am having great difficulty getting the Insurance they require. I did not qualify for their scheme and was asked to source my own. They are asking for both Mortgage Protection Insurance and Income Protection Insurance. I am only getting approved on one and the council are adamant they won’t proceed without both in place.
    I am now sale agreed on a property and it looks like I will have to let it go as I cannot get both. I am just wondering as every I say it too seems to think that it is excessive for them to require both. Was everyone asked for both or is it simply as I am a single applicant?


    Everyone gets asked for this. Lots of places offering income protection at reasonable rates. MPI covers your mortage payment if your certified with a illness after 90 days. So they just want to know if you become ill that your mortgage will still be paid.


  • #2219
    BKWDR
    Registered Users Posts: 2,172 ✭✭✭BKWDR


    Suebermo82 wrote: »
    Hi, I know this thread was a while ago, but I am looking for anyone who made an application for SDCC through the Rebuilding Ireland Scheme. I am a single applicant and although they approved my loan, I am having great difficulty getting the Insurance they require. I did not qualify for their scheme and was asked to source my own. They are asking for both Mortgage Protection Insurance and Income Protection Insurance. I am only getting approved on one and the council are adamant they won’t proceed without both in place.
    I am now sale agreed on a property and it looks like I will have to let it go as I cannot get both. I am just wondering as every I say it too seems to think that it is excessive for them to require both. Was everyone asked for both or is it simply as I am a single applicant?

    In order to get the RIHL you have to use the Councils MPI scheme, its in the credit policy. It looks like as you are declined for their scheme they are allowing you get it externally but it does need to be equivilant cover to what they offer or as close to. People (Insurance agents / brokers) are probably saying it's excessive as its not what the banks look for but this isnt a bank loan so you kinda need to play by their rules.


  • #2220
    Suebermo82
    Registered Users Posts: 6 ✭Suebermo82


    I understand that but the problem is I cannot get the cover they are looking for in place and i will now lose my property, i was just looking to see if this is normal practice for them as it seems very definite ah well you cant get it thats it no other route available.


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  • #2221
    Hudur
    Registered Users Posts: 34 ✭Hudur


    And Declined... got letter this morning. GG, took about two months.

    Seems that only approved saving are if you put them to 0% interest saving account every month. I was putting 10% of my gross salary for years to company stock saving scheme, sold them end of last year and money is now on my savings account, but that is not "regular savings".


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