Rebuilding Ireland home loan

Jafin · 23-06-2020 10:46pm

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 · 23-06-2020 11:05pm

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 · 24-06-2020 10:59am

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 · 24-06-2020 6:55pm

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 · 24-06-2020 9:22pm

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 · 25-06-2020 4:47pm

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

surrender monkey · 25-06-2020 4:52pm

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 · 25-06-2020 5:51pm

Cheesepuffs wrote: »

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

Congrats best of luck

Graham · 25-06-2020 5:53pm

surrender monkey wrote: »

stamp duty is only 100 euro

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

surrender monkey · 25-06-2020 6:11pm

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 · 25-06-2020 6:13pm

Homedream wrote: »

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

Any luck getting an insurer ?

Graham · 25-06-2020 6:27pm

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 · 25-06-2020 10:15pm

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 · 25-06-2020 10:18pm

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 · 26-06-2020 2:03am

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 · 26-06-2020 8:24am

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 · 26-06-2020 9:05am

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 · 26-06-2020 10:57am

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 · 27-06-2020 2:33am

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 · 27-06-2020 10:39am

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 · 27-06-2020 10:52am

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 · 27-06-2020 11:39am

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 · 27-06-2020 12:16pm

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 · 27-06-2020 1:14pm

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 · 28-06-2020 9:06am

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 · 28-06-2020 10:38am

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 · 28-06-2020 11:46am

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 · 28-06-2020 4:35pm

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 · 28-06-2020 5:26pm

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

Maz2016 · 28-06-2020 5:43pm

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.

Cheesepuffs · 28-06-2020 7:51pm

Got our loan offer last week, how much are people paying for MPI.

My pack says MPI is €100 per month but Aviva quoted €19 a month.

Maz2016 · 28-06-2020 8:33pm

Cheesepuffs wrote: »

Got our loan offer last week, how much are people paying for MPI.

My pack says MPI is €100 per month but Aviva quoted €19 a month.

€100 sounds about right. Depends on the value of the mortgage of course. The mpi with the council is extremely expensive

Shellzer123 · 29-06-2020 10:08am

Cheesepuffs wrote: »

Got our loan offer last week, how much are people paying for MPI.

My pack says MPI is €100 per month but Aviva quoted €19 a month.

What council is it with? Mine is €106 per month and that you have to take it, its a clause with the County Council mortgage. Its a bit steep but its worth it considering they are lending you more than the banks are.

Shellzer123 · 29-06-2020 10:09am

Any body receive a loan pack from Fingal County Council in the last week or so?

gnr vr fan · 29-06-2020 7:52pm

Hi everyone.

Just an update. I have gone sale agreed on a property.

In light of the COVID-19 the Council (SDCC) had requested the following;

Statement of Benefits from Department of Social Welfare to state I had not received any unemployment benefit.

New Salary Cert (which stated we were on the government wage subsidy scheme (GWSS)

3 months worth of payslips (which unfortunately showed my wages were decreased to 70%, then up to 85%, then up to 100% and the last payslip (last weeks which shows we are off the GWSS)

I've submitted all the above and its going to credit committee.

I'll keep ye updated with what the credit committee comes back with.

phobia2011 · 29-06-2020 8:33pm

Can anyone give me a link to the mortgage calculator that you can screenshot to use as you insufficient offer, I have one but there is not much detail on it just a section saying how much I can borrow but with no bank name even in view?

Shamboo1801 · 29-06-2020 8:56pm

Shellzer123 wrote:

What council is it with? Mine is â‚¬106 per month and that you have to take it, its a clause with the County Council mortgage. Its a bit steep but its worth it considering they are lending you more than the banks are.

Your MPI is .55% of your outstanding balance. Take your total amount, divide by 100, multiply by .55 then divide by 12. That will give you your mpi per month. Goes down a few euro each year.

Sulli83 · 30-06-2020 12:41pm

gnr vr fan wrote: »

Hi everyone.

Just an update. I have gone sale agreed on a property.

In light of the COVID-19 the Council (SDCC) had requested the following;

Statement of Benefits from Department of Social Welfare to state I had not received any unemployment benefit.

New Salary Cert (which stated we were on the government wage subsidy scheme (GWSS)

3 months worth of payslips (which unfortunately showed my wages were decreased to 70%, then up to 85%, then up to 100% and the last payslip (last weeks which shows we are off the GWSS)

I've submitted all the above and its going to credit committee.

I'll keep ye updated with what the credit committee comes back with.

Hope it's a positive outcome for you!!

We had a meeting with Wicklow CC this morning, it's looking like a formality for us now that we will be given the loan unless stipulations from the department or our circumstances change over the next few weeks.

Just a heads up though we were informed today that in order to draw down you will have to be off TWSS for 2 full months, we are currently 6 weeks off it at this point. The admins were great today and said they would attempt to push the application along even though we weren't the full 2 months off TWSS yet.

phobia2011 · 01-07-2020 10:35am

phobia2011 wrote: »

Can anyone give me a link to the mortgage calculator that you can screenshot to use as you insufficient offer, I have one but there is not much detail on it just a section saying how much I can borrow but with no bank name even in view?

Bump

beanyb · 01-07-2020 10:50am

phobia2011 wrote: »

Can anyone give me a link to the mortgage calculator that you can screenshot to use as you insufficient offer, I have one but there is not much detail on it just a section saying how much I can borrow but with no bank name even in view?

The Permanent TSB one allows you to download it and it'll show the information you put into it. I also used the Ulster Bank one which was just a screenshot and they accepted that fine. I wouldn't overthink it.

Jafin · 01-07-2020 11:50am

phobia2011 wrote: »

Can anyone give me a link to the mortgage calculator that you can screenshot to use as you insufficient offer, I have one but there is not much detail on it just a section saying how much I can borrow but with no bank name even in view?

As BeanyB posted above you can download the Permanent TSB one. Make sure to check with your local CC if they will actually accept it though. My local CC originally said they would accept it but then when I gave it to them they said they couldn't accept it. Luckily I had gotten approval in principle from PTSB a few months prior to that so I just asked them for the same approval in principle with a more recent date and I was able to hand that in instead. For my second piece of evidence I used a letter of approval in principle from AIB. You can get that all online without ever having to talk to an actual person, so I would definitely advised getting the online approval in principle from AIB if you can.

phobia2011 · 01-07-2020 1:39pm

Jafin wrote: »

As BeanyB posted above you can download the Permanent TSB one. Make sure to check with your local CC if they will actually accept it though. My local CC originally said they would accept it but then when I gave it to them they said they couldn't accept it. Luckily I had gotten approval in principle from PTSB a few months prior to that so I just asked them for the same approval in principle with a more recent date and I was able to hand that in instead. For my second piece of evidence I used a letter of approval in principle from AIB. You can get that all online without ever having to talk to an actual person, so I would definitely advised getting the online approval in principle from AIB if you can.

Thanks for the replies, does it have to be an approval? If I was declined would that be the same?

Jafin · 01-07-2020 2:01pm

phobia2011 wrote: »

Thanks for the replies, does it have to be an approval? If I was declined would that be the same?

Oh yeah I was very confused about all this before I started too actually. So you don't need to be refused at all, you just need to be offered an insufficient amount. For example if you want a mortgage of €175,000 but the banks only offer you €150,000 then that counts as an insufficient offer, which is what you need to qualify for the scheme. In my experience the banks didn't refuse me, they just offered me a very low amount. If you have actually been refused then that should work just as well, but contact your local CC to be 100% sure. In my experience they've always been very helpful when I've needed advice.

For me personally the banks were offering me between €75,000 and €85,000, but the online calculator for the Rebuilding Ireland Home Loan Scheme said I could get up to €116k and some odd number of euro. What I did was get my two letters of Approval in Principle from two banks for around €80,000 each and then applied for €115,000 from the RIHL Scheme. Those letters were perfectly acceptable evidence of "insufficient offers."

jenpenjelly · 01-07-2020 4:24pm

Hi, just starting this mad process now and I can't figure out how to send my employer my salary cert over email without sending the whole application form to them. Is there a link available anywhere?
Thanks

Jafin · 01-07-2020 4:44pm

jenpenjelly wrote: »

Hi, just starting this mad process now and I can't figure out how to send my employer my salary cert over email without sending the whole application form to them. Is there a link available anywhere?
Thanks

If you open the whole file in your PDF reader, go to Print and then go to the drop down menu which shows your installed printer(s) there should be an option called Microsoft Print to PDF. Select that, and then under where it says Pages to Print change the selection from "All" to "Pages" and then type in the page number (which should be 12). After that click Print and it will bring up a window which allows you to save just that page as a separate PDF, which you can then email on to your employer.

jenpenjelly · 01-07-2020 6:12pm

Jafin wrote: »

If you open the whole file in your PDF reader, go to Print and then go to the drop down menu which shows your installed printer(s) there should be an option called Microsoft Print to PDF. Select that, and then under where it says Pages to Print change the selection from "All" to "Pages" and then type in the page number (which should be 12). After that click Print and it will bring up a window which allows you to save just that page as a separate PDF, which you can then email on to your employer.

Thank you so much

mirabella1 · 03-07-2020 6:51pm

Hello there. I need your help. When we applied for first time we had car loan. Now we finish with car loan so we don't have it. Can we apply again or we have to wait at least for 6mths because in our bank statement still will be that car loan. Thank you

L1011 · 03-07-2020 8:16pm

You can apply now, the loan will be closed on your credit file.

mirabella1 · 03-07-2020 8:25pm

Another question I have. How much is the best amount of money for regular saving. And weekly or monthly is the best?

Maz2016 · 03-07-2020 9:05pm

mirabella1 wrote: »

Another question I have. How much is the best amount of money for regular saving. And weekly or monthly is the best?

Weekly/monthly doesn’t matter. Just make it consistent. They want to see that you are paying the monthly loan repayment now in rent or savings.

Rebuilding Ireland home loan

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