Rebuilding Ireland home loan

Diddlersdoyle · 10-08-2018 11:15pm

My daughter has gone through the entire process and got her keys of her new home two weeks ago. She started the application as soon as the scheme was announced. I think she was one of the first to draw down the funds with DCC. HANG IN THERE. ITS A TEDIOUS AND SLOW PROCESS BUT WORTH IT IN THE END.

bri007 · 11-08-2018 12:13am

We don’t meet the employment criteria to apply as a couple and both incomes taken into account, however the coco said we can apply as a couple and tick one income on application.

Not sure how to go about it now but will look into it, so maybe be similar to what they said to you and your wife?

Obviously would limit us to what we would get approved for just taking into consideration one income and not two.

Only option we have currently so will give it a try, we will have to read it as it doesn’t state how to fill it out on one income just has options of working or not working so unsure what to put in it.

VW08 · 11-08-2018 7:23am

Has anyone on here used it to build? We’re you able to do everything with the time constraints?

I was told yesterday that I’d have 3 months to draw down the first instalment. Seems very tight to me. Then 6 months to get engineers documents etc in. If you didn’t get all this done in time they’d request up to date bank statements etc.

autumnbelle · 11-08-2018 8:20am

VW08 wrote: »

Has anyone on here used it to build? We’re you able to do everything with the time constraints?

I was told yesterday that I’d have 3 months to draw down the first instalment. Seems very tight to me. Then 6 months to get engineers documents etc in. If you didn’t get all this done in time they’d request up to date bank statements etc.

We are hoping to get it to build, is there timeframes on each stage or just the first? Are you going contractor or direct labour

metricspaces · 11-08-2018 8:56am

Got my response back yesterday after 10 weeks. Declined! Two reasons were given:

Not showing repayment capacity
Not showing source of savings

At a high level this scheme is a bit of a joke and a lottery it seems. For two banks two offer me mortgages in two to three week time frames (and with stricter criteria as they stress test your repayment capacity) and the Council spend ten weeks fannying about and offer nothing. Something is clearly wrong.

Few questions if anyone can help with:

1) Appealing Decision

To appeal the decision is it basically going through the same process again and waiting another 10 weeks? Or if there was a mistake made by the Council could it be looked into quicker?

2) Is it unusual to get an outright refusal with not even an offer for a lower amount?

When submitting the application the person I met in Fingal CC told me to put in the max amount allowed by their calculator. She worked it out. She said there was no harm putting in the max and they would still offer a lower amount.

My application included approval in principle letters from two banks. So it's mind boggling that the Council would give a blank refusal and not offer even a lower amount than I requested.

3) For anyone who got refused on showing source of savings. How did you deal with this in an appeal?

My submission included bank statements going back as far as my SSIA (Government Savings Scheme) which is over 10 years ago! All my savings have been accounted for. The lady who helped with my submission in Fingal was happy with it too. This makes me wonder if the underwriters/credit committee got all the documentation I submitted or that there has been some cock up along the line.

It is the same with displaying ability to repay. I included 12 months savings and rent statements that cover more than the amount I would need to repay.

It's not like the Council stress test your repayment capacity like a bank as the Government mortgage provides a guaranteed interest rate so the repayment amount will never change.

4) After a refusal. Did anyone meet face to face with the Council for a more detailed explanation of why they were refused and how the situation can be resolved to the satisfaction of the Council?

From my perspective my submission included documentation that displayed both repayment capacity and source of savings. Without further details from Council I'm snookered.

VW08 · 11-08-2018 10:28am

autumnbelle wrote: »

We are hoping to get it to build, is there timeframes on each stage or just the first? Are you going contractor or direct labour

I'm with a contractor. I think once the first drawdown happens your covered. But there are forms from the engineer etc that they need. Don't know all the in's and out's though.

Pussyhands · 11-08-2018 12:08pm

Anyone know of the two tougest banks to get mortgages for? I'd like to get rejected.

power pants · 14-08-2018 11:41am

I applied in first week of March and received approval end of June

Have 200k but finding it next to impossible to find somewhere in fingal for that price for a 2 bed

bri007 · 14-08-2018 7:42pm

Congrats on getting passed.

Did you try around swords? Realistically it will be tough to get a house for that price but swords would be only place that may have apartments duplex available for 200’s but you may have to put a lot more towards it than current 20k deposit!

Just in your application, was it a single or joint application?

power pants wrote: »

I applied in first week of March and received approval end of June

Have 200k but finding it next to impossible to find somewhere in fingal for that price for a 2 bed

power pants · 15-08-2018 11:55am

bri007 wrote: »

Congrats on getting passed.

Did you try around swords? Realistically it will be tough to get a house for that price but swords would be only place that may have apartments duplex available for 200’s but you may have to put a lot more towards it than current 20k deposit!

Just in your application, was it a single or joint application?

Thanks, single application and lone parent too ,

Yes, swords seem to be as expensive for the apartments too

It’s unfortunate as apartment prices in fingal for 2 beds were around 160k this time last year, just goes to show how fast it goes

I think the rebuilding Ireland loans contributed to this too

Effectively in the same position now as I was last year with the lower mortgage approvals from banks and building societies

Can’t afford to rent anymore and can’t afford to buy

Unbelievable really

optogirl · 15-08-2018 12:05pm

power pants wrote: »

Thanks, single application and lone parent too ,

Yes, swords seem to be as expensive for the apartments too

It’s unfortunate as apartment prices in fingal for 2 beds were around 160k this time last year, just goes to show how fast it goes

I think the rebuilding Ireland loans contributed to this too

Effectively in the same position now as I was last year with the lower mortgage approvals from banks and building societies

Can’t afford to rent anymore and can’t afford to buy

Unbelievable really

It's so disheartening -needing 30k of a deposit while paying ridiculous rents. Goalposts keep moving and salary not moving in line - nor could it be expected to be. Sickening really

spicymchaggis · 16-08-2018 2:00am

Maybe someone could help with my understanding on this scheme. To be declined by two banks is that flat out no offer for a mortgage of any kind or refusal for a mortgage of a requested amount. For example if you were approved for a mortgage of 3.5 of you and your partners combined gross income equating to for example €225,000 but wanted a mortgage of €250,000 do you as for the higher mortgage and just get a refusal letter? Trying to wrap my head around the scheme. The banks would only give those financially stable with a combined yearly income of €65,000 with no kids much lower mortgage than the government giving those refused a mortgage in the Dublin area potentially of €300,000? And at a lower rate???

Diddlersdoyle · 16-08-2018 8:17am

You apply to Bank/building society for mortgage and they will offer you the largest amount they are prepared to give you (usually 3.5) or refuse you. You can alsso specify you are only comfortable with 3.5 of your salaries. Generally the banks only give 3.5 but they have a capacity of allowing 20% of first time buyers go up to 4.5 of their income.

You can either get refused or receive 3.5 of your salary (refusal or insufficient offer which Rebuilding require). Rebuilding Ireland can lend you more if you choose a fixed interest rate as this mortgage does not have to be stress tested for the future as the repayments will never increase. Use their calculator to access the amount they will give you. They will lend you more because the interest is lower than banks and is also fixed for life.

Dve28 · 17-08-2018 11:20pm

LK1988 wrote: »

I pretty much have SDCC on speed diall at this stage. I called and they told me it was with the credit commitee.

Did u get to the last stage? I'm on the last stage but so far its taking quiet long. Last email I got from them was our application was with Chief executive, but agent is keep calling me to giving closing date and sign the contracts

Floricwil · 17-08-2018 11:32pm

raheny red wrote: »

Dublin City's approval letter said we will have to provide updated statements, can't remember if payslips was mentioned. Fingal's didn't mention it.

Its the same with Fingal. I had to bring in an up to date salary cert, payslip and bank statement after i went sale agreed.

Word of advice to anyone, as soon as you go sale agreed, let the Council know. By the time they organise a meet with you, pass your case over to the Law Department and send your solicitor the Legal Pack, alot of time can pass, which can slow thr process up even more.

Contrails · 17-08-2018 11:48pm

Floricwil wrote: »

Its the same with Fingal. I had to bring in an up to date salary cert, payslip and bank statement after i went sale agreed.

Why would they have you supply the same paperwork again? Was it a case where your application took a few months to assess perhaps?

LK1988 · 17-08-2018 11:50pm

Dve28 wrote: »

Did u get to the last stage? I'm on the last stage but so far its taking quiet long. Last email I got from them was our application was with Chief executive, but agent is keep calling me to giving closing date and sign the contracts

Never got an email from them. Still waiting to see if we get apporoved... have you been approved and all?

spicymchaggis · 18-08-2018 3:32am

Diddlersdoyle wrote: »

You apply to Bank/building society for mortgage and they will offer you the largest amount they are prepared to give you (usually 3.5) or refuse you. You can alsso specify you are only comfortable with 3.5 of your salaries. Generally the banks only give 3.5 but they have a capacity of allowing 20% of first time buyers go up to 4.5 of their income.

You can either get refused or receive 3.5 of your salary (refusal or insufficient offer which Rebuilding require). Rebuilding Ireland can lend you more if you choose a fixed interest rate as this mortgage does not have to be stress tested for the future as the repayments will never increase. Use their calculator to access the amount they will give you. They will lend you more because the interest is lower than banks and is also fixed for life.

So for the refusal does it actually have to be a refusal letter or a much lower AIP from 2 banks than what Rebuilding Ireland offers? I have 2 AIP's but I won't get anything in the area I'm looking for that amount, even with all our savings.

Darkglasses · 18-08-2018 8:09am

spicymchaggis wrote: »

So for the refusal does it actually have to be a refusal letter or a much lower AIP from 2 banks than what Rebuilding Ireland offers? I have 2 AIP's but I won't get anything in the area I'm looking for that amount, even with all our savings.

Either is acceptable

ad1234 · 18-08-2018 9:37am

has anyone here gone through wicklow coco?

Floricwil · 18-08-2018 9:49am

Contrails wrote: »

Why would they have you supply the same paperwork again? Was it a case where your application took a few months to assess perhaps?

I submitted everything in February first and then it was July by the time I went sale agreed.

I think there will always be a time lapse between when you first apply and go sale agreed given that finding the right house can take a bit of time.

I suppose they want to make sure you havent spent your savings, your incomes still at the same level that the offer made to you was based on.

Cazzums · 20-08-2018 12:19am

Iv just signed my contract of sale. Does anyone know how long it takes for the council to draw down funds after this?? Would it all be done and dusted in a month??

SNNUS · 20-08-2018 4:53pm

Cazzums wrote: »

Iv just signed my contract of sale. Does anyone know how long it takes for the council to draw down funds after this?? Would it all be done and dusted in a month??

It will take around 6 weeks or so after receiving draft loan offer

Little Less Conversation · 20-08-2018 9:17pm

How much different is this scheme from what a bank would offer you?

Do they offer you 3.5 times your salary?

dubliner999 · 20-08-2018 10:13pm

In a bit of an odd situation here. Have most of my money in shares at the moment (will need to pay CGT on the profits obviously).

If I were to get a mortgage with a bank it wouldn't be worth it for me as the repayments would be too much.

However, using rebuilding Ireland it would be worth it. However, from reading this thread there's a good chance that after selling my shares and paying the taxes involved I could still get turned down from rebuilding Ireland and then be stuck with money in the bank after paying the (high) taxes.

Maybe I'm missing something. But what I'm trying to say is: it's a big gamble even to apply for this for me

Cazzums · 20-08-2018 10:39pm

SNNUS wrote: »

It will take around 6 weeks or so after receiving draft loan offer

What do you mean by draft loan offer?

SNNUS · 20-08-2018 10:52pm

Cazzums wrote: »

What do you mean by draft loan offer?

When you have a property that you have sale agreed and you advise the council and they send you the draft loan documents based on that property, your solicitor will get them one month later

GingerLily · 20-08-2018 11:10pm

dubliner999 wrote: »

In a bit of an odd situation here. Have most of my money in shares at the moment (will need to pay CGT on the profits obviously).

If I were to get a mortgage with a bank it wouldn't be worth it for me as the repayments would be too much.

However, using rebuilding Ireland it would be worth it. However, from reading this thread there's a good chance that after selling my shares and paying the taxes involved I could still get turned down from rebuilding Ireland and then be stuck with money in the bank after paying the (high) taxes.

Maybe I'm missing something. But what I'm trying to say is: it's a big gamble even to apply for this for me

What if the bank approve you and you don't qualify? Or is there more to your plan?

Cazzums · 20-08-2018 11:53pm

SNNUS wrote: »

When you have a property that you have sale agreed and you advise the council and they send you the draft loan documents based on that property, your solicitor will get them one month later

Oh yes I have that already and the contracts been signed and final deposit paid so just wondering how long now for the sale to be closed and I get the keys for the house? Many thanks for your reply

dubliner999 · 21-08-2018 7:24am

GingerLily wrote: »

What if the bank approve you and you don't qualify? Or is there more to your plan?

I'm pretty sure the banks wouldn't approve me since I need a bit more than what the banks would lend me. But there's no more to the plan which is probably why I haven't applied for this scheme yet.

Rebuilding Ireland home loan

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