Government Funds Local Authority Housing Scheme

SNNUS · 08-06-2018 10:30pm

robbo25 wrote: »

Hi, has anyone that was approved drawn down the loan yet? We just got approved and just wondering how the next stage will be. Starting our house hunt tomorrow :-)

You had a long wait? Congrats and enjoy the house hunt

My solicitor is still waiting to get the official loan approval documents..

robbo25 · 08-06-2018 10:34pm

Yep sure did! We applied at the end of Feb and rejected 8 weeks later because of two things. Appealed 5 weeks ago and just got the approval yesterday. So am I right in thinking you had an offer accepted? Sorry totally new to this process and not sure how it's going to flow. Do I engage a solicitor once we have had an offer accepted?

SNNUS · 08-06-2018 10:55pm

Yep once you find a house and you put down a deposit then you get a solicitor.

robbo25 wrote: »

Yep sure did! We applied at the end of Feb and rejected 8 weeks later because of two things. Appealed 5 weeks ago and just got the approval yesterday. So am I right in thinking you had an offer accepted? Sorry totally new to this process and not sure how it's going to flow. Do I engage a solicitor once we have had an offer accepted?

robbo25 · 08-06-2018 10:58pm

SNNUS wrote: »

Yep once you find a house and you put down a deposit then you get a solicitor.

Thanks, hope you get sorted. Any idea when you can move in?

SNNUS · 08-06-2018 11:03pm

robbo25 wrote: »

Thanks, hope you get sorted. Any idea when you can move in?

Hopefully the end of July or Early August but it's a new build so nearly there and it suited the slow progress of the loan application !

bri007 · 08-06-2018 11:19pm

Congrats on getting loan approval.

Can I ask, how long were u waiting on a reply back from when you made the application?

Sorry scrap that I didn't read further back where you said how long you were waiting!

I didn't know you can appeal the decision, that's good to know!

robbo25 wrote: »

Hi, has anyone that was approved drawn down the loan yet? We just got approved and just wondering how the next stage will be. Starting our house hunt tomorrow :-)

metricspaces · 09-06-2018 11:04am

robbo25 wrote: »

Yep sure did! We applied at the end of Feb and rejected 8 weeks later because of two things. Appealed 5 weeks ago and just got the approval yesterday. So am I right in thinking you had an offer accepted? Sorry totally new to this process and not sure how it's going to flow. Do I engage a solicitor once we have had an offer accepted?

Great news that you got approved. I'm curious about rejections so I can try avoid in initial application if you don't mind sharing the info that would be really helpful.

What did your original application get rejected on? Was it a total rejection or they just offered you a lower amount than you applied for?

What in your appeal changed it from a rejection to success?

robbo25 · 09-06-2018 8:04pm

metricspaces wrote: »

Great news that you got approved. I'm curious about rejections so I can try avoid in initial application if you don't mind sharing the info that would be really helpful.

What did your original application get rejected on? Was it a total rejection or they just offered you a lower amount than you applied for?

What in your appeal changed it from a rejection to success?

We were rejected because I didn't show where my deposit originally came from. it was a redundancy payment so just sent them in the letter from my old employer detailing the amount. The other point was they said amount we wanted was outwith their lending criteria. I received a pay rise after our initial application and changed our tax credits to increase our net salary and argued that the mortgage plus the mpi was still less than the rent we pay. Good luck

robbo25 · 09-06-2018 8:05pm

SNNUS wrote: »

Hopefully the end of July or Early August but it's a new build so nearly there and it suited the slow progress of the loan application !

One more question if you don't mind - at what stage did you fill in the MPI form?

metricspaces · 10-06-2018 3:22pm

robbo25 wrote: »

The other point was they said amount we wanted was outwith their lending criteria. I received a pay rise after our initial application and changed our tax credits to increase our net salary and argued that the mortgage plus the mpi was still less than the rent we pay. Good luck

Thanks for that info. I presume if they didn't reject your application based on your first point that they would have made you an offer for less than you asked and then given the above as explanation of why you didn't get what you asked for?

It sounds like the application was rejected on just one point, where your savings came from, rather than two point?

SNNUS · 10-06-2018 4:13pm

robbo25 wrote: »

One more question if you don't mind - at what stage did you fill in the MPI form?

Not done that yet... Maybe If I say I drink 20 pints a day and smoke 50 ciggies they will refuse me and I can get my own MPI :P

triple nipple · 10-06-2018 11:21pm

SNNUS wrote:

Not done that yet... Maybe If I say I drink 20 pints a day and smoke 50 ciggies they will refuse me and I can get my own MPI

On a serious note, keep me updated. I would love to know if that works.

OCDee · 19-06-2018 9:40am

Hey, What is an MPI form?

SNNUS · 19-06-2018 10:06am

OCDee wrote: »

Hey, What is an MPI form?

The group mortgage protection insurance form that is sent out with the other loan documents.

metricspaces · 19-06-2018 11:27am

https://www.independent.ie/irish-news/politics/half-of-firsttime-buyer-home-loans-are-being-refused-37020817.html

52% chance of being approved if your application is valid...

autumnbelle · 19-06-2018 12:30pm

How much does the MPI work out at? Why is it so much higher then others?

OCDee · 19-06-2018 2:13pm

metricspaces wrote: »

https://www.independent.ie/irish-news/politics/half-of-firsttime-buyer-home-loans-are-being-refused-37020817.html

52% chance of being approved if your application is valid...

This was quoted on The Tonight Show on TV3 last night. "Only 5 loans have been drawn down nationwide" so far?

Is this scheme just a pipe dream / waste of time?

stryker mcqueen · 19-06-2018 2:32pm

Worth bearing in mind that people who have gotten approval then have to find a property , so with the average waiting time is 10 weeks and then add longer onto that to find the property, the scheme is only active since February so i wouldn't write it off just yet!

metricspaces · 19-06-2018 2:48pm

OCDee wrote: »

metricspaces wrote: »

https://www.independent.ie/irish-news/politics/half-of-firsttime-buyer-home-loans-are-being-refused-37020817.html

52% chance of being approved if your application is valid...

This was quoted on The Tonight Show on TV3 last night. "Only 5 loans have been drawn down nationwide" so far?

Is this scheme just a pipe dream / waste of time?

Apparently it is taking at least 10 weeks to get a response in Fingal. Considering they have only 1500 applications nationwide so far this seems a little crazy.

OCDee · 19-06-2018 2:49pm

We put a property in our application form that has since sold due to the length of time that has passed during application. Do you think it is still possible for us to get an offer of a loan so we can find a new property?

Ailbag · 19-06-2018 5:46pm

Most people aren't specifying a property in their applications as it takes so long for them to come through. I got approval last Thursday after just under 10 weeks; it should speed up a little now though as they are having weekly credit committee meetings, as opposed to fortnightly ones.

metricspaces · 19-06-2018 5:53pm

OCDee wrote: »

Do you think it is still possible for us to get an offer of a loan so we can find a new property?

Yes you can use it on another property once the property price falls within the criteria of the scheme.

It sounds like it's turned into a bit of a farce at the moment with people expected to wait almost three months for a reply. Typical governmental department approach - launch a scheme without the systems and resources in place to deal with it, turning what should be a simple process into a long drawn out frustrating one.

ad1234 · 19-06-2018 10:01pm

https://www.facebook.com/Reform-The-Rebuilding-Ireland-Home-Loan-474723336317593/

Darkglasses · 20-06-2018 1:13pm

stryker mcqueen wrote: »

Worth bearing in mind that people who have gotten approval then have to find a property , so with the average waiting time is 10 weeks and then add longer onto that to find the property, the scheme is only active since February so i wouldn't write it off just yet!

Bingo. It's a nonsense article.

rachieqtpie · 20-06-2018 1:39pm

triple nipple wrote: »

On a serious note, keep me updated. I would love to know if that works.

We have done the mpi form, we then both had to do a telesales call over form going through your health. We were unsure if we would qualify as partner had a heart condition that has since been rectified. We got notification on Monday we we approved.

We do know of someone who got refused and sourced their own for €30 a month so a massive saving if you were to be refused..... just saying!

SNNUS · 20-06-2018 7:56pm

rachieqtpie wrote: »

We have done the mpi form, we then both had to do a telesales call over form going through your health. We were unsure if we would qualify as partner had a heart condition that has since been rectified. We got notification on Monday we we approved.

We do know of someone who got refused and sourced their own for €30 a month so a massive saving if you were to be refused..... just saying!

I have an allergy to overpriced insurance

metricspaces · 20-06-2018 9:52pm

rachieqtpie wrote: »

.

We do know of someone who got refused and sourced their own for €30 a month so a massive saving if you were to be refused..... just saying!

That's strange as they clearly state that their MPI must be taken and the Minister answered this very question also i.e. if you don't take/qualify for their MPI then no mortgage.

metricspaces · 20-06-2018 9:57pm

metricspaces wrote: »

That's strange as they clearly state that their MPI must be taken and the Minister answered this very question also i.e. if you don't take/qualify for their MPI then no mortgage.

Apologies I stand corrected. See here
https://www.oireachtas.ie/en/debates/question/2018-02-20/596/

"One of the conditions of the scheme, which is a group policy, is that it is obligatory for all local authority borrowers who meet the eligibility criteria to join the scheme. Altering this condition would have a negative impact on the scheme and increase the cost for all existing borrowers. The group policy is a commercial insurance product which is procured in accordance with EU procurement rules. A local authority housing loan applicant who is not eligible for the local authority MPI scheme must source a suitable comparable individual MPI policy from the market."

It would seem strange though if someone sourced a "comparable" insurance product for a fraction of the cost.

raheny red · 20-06-2018 11:55pm

A small update just to give people an idea of the time frame. We applied with Fingal and DCC on 28/05/18 - Today a letter dated 13/06/18 arrived from Fingal. The letter states that it is now with the housing agency for assessment and recommendation. Nothing from DCC as of yet.

bri007 · 21-06-2018 1:24am

Did you just post the application into fingal and DCC or did you go in first and meet with each council and go through the application with them?

raheny red wrote: »

A small update just to give people an idea of the time frame. We applied with Fingal and DCC on 28/05/18 - Today a letter dated 13/06/18 arrived from Fingal. The letter states that it is now with the housing agency for assessment and recommendation. Nothing from DCC as of yet.

autumnbelle · 21-06-2018 11:12am

metricspaces wrote: »

Apologies I stand corrected. See here
https://www.oireachtas.ie/en/debates/question/2018-02-20/596/

"One of the conditions of the scheme, which is a group policy, is that it is obligatory for all local authority borrowers who meet the eligibility criteria to join the scheme. Altering this condition would have a negative impact on the scheme and increase the cost for all existing borrowers. The group policy is a commercial insurance product which is procured in accordance with EU procurement rules. A local authority housing loan applicant who is not eligible for the local authority MPI scheme must source a suitable comparable individual MPI policy from the market."

It would seem strange though if someone sourced a "comparable" insurance product for a fraction of the cost.

Does the MPI cover loss of job I wonder

autumnbelle · 21-06-2018 11:14am

In most cases, the lender is legally required under Section 126 of the Consumer Credit Act 1995 to make sure that you have mortgage protection insurance before giving you a mortgage, with some exceptions – see ‘Exceptions to legal requirement’ below. However, if the lender offers a particular policy, you are not required to buy it. You can shop around for a mortgage protection policy that suits your needs. Your lender cannot refuse you a mortgage because you don't buy the policy it offers.

http://www.citizensinformation.ie/en/housing/owning_a_home/buying_a_home/mortgage_protection.html

Mark Hamill · 21-06-2018 11:33am

I was told when applying for mine that I had to take the one offered by the council, I didn't have a choice. This is why the amount I was ultimately offered was less than what the calculator on the website initially said I could get - the website doesn't take account of what they charge for MPI.

metricspaces link to the oireachtas questions and answers says two things:
"Where a lender offers a particular policy, sub-section 2(d) of section 126 of the Act provides that the borrower can source an alternative policy to suit their needs. However, subsection 2(d) does not apply to local authorities."
and
"A local authority housing loan applicant who is not eligible for the local authority MPI scheme must source a suitable comparable individual MPI policy from the market."

It seems to me that this means you must take the Local Authority MPI, if you are eligible for it. You can't choose to reject it, but if they reject you then you can find your own.

Darkglasses · 21-06-2018 12:22pm

autumnbelle wrote: »

Does the MPI cover loss of job I wonder

It does not - it only covers death or being out of work due to disability.

raheny red · 21-06-2018 12:59pm

bri007 wrote: »

Did you just post the application into fingal and DCC or did you go in first and meet with each council and go through the application with them?

We met with them on the same day.

autumnbelle · 21-06-2018 2:46pm

Mark Hamill wrote: »

I was told when applying for mine that I had to take the one offered by the council, I didn't have a choice. This is why the amount I was ultimately offered was less than what the calculator on the website initially said I could get - the website doesn't take account of what they charge for MPI.

metricspaces link to the oireachtas questions and answers says two things:
"Where a lender offers a particular policy, sub-section 2(d) of section 126 of the Act provides that the borrower can source an alternative policy to suit their needs. However, subsection 2(d) does not apply to local authorities."
and
"A local authority housing loan applicant who is not eligible for the local authority MPI scheme must source a suitable comparable individual MPI policy from the market."

It seems to me that this means you must take the Local Authority MPI, if you are eligible for it. You can't choose to reject it, but if they reject you then you can find your own.

How much does it work out at a month? I asked them on the helpline and they said they will give the figure if your approved but I would like to know if its much extra on top of say a €200k mortgage monthly

SNNUS · 21-06-2018 2:58pm

The bones of €100 per month

autumnbelle wrote: »

How much does it work out at a month? I asked them on the helpline and they said they will give the figure if your approved but I would like to know if its much extra on top of say a €200k mortgage monthly

rachieqtpie · 21-06-2018 3:14pm

autumnbelle wrote: »

How much does it work out at a month? I asked them on the helpline and they said they will give the figure if your approved but I would like to know if its much extra on top of say a €200k mortgage monthly

Ours is 120 based on a 250k mortgage

rachieqtpie · 21-06-2018 3:16pm

autumnbelle wrote: »

In most cases, the lender is legally required under Section 126 of the Consumer Credit Act 1995 to make sure that you have mortgage protection insurance before giving you a mortgage, with some exceptions – see ‘Exceptions to legal requirement’ below. However, if the lender offers a particular policy, you are not required to buy it. You can shop around for a mortgage protection policy that suits your needs. Your lender cannot refuse you a mortgage because you don't buy the policy it offers.

http://www.citizensinformation.ie/en/housing/owning_a_home/buying_a_home/mortgage_protection.html

Our solicitor has advised we could challenge them on it...but wait until the mortgage has been drawen down!

autumnbelle · 21-06-2018 3:38pm

rachieqtpie wrote: »

Ours is 120 based on a 250k mortgage

Does it come down as you repay

rachieqtpie · 21-06-2018 3:44pm

autumnbelle wrote: »

Does it come down as you repay

Yes

Darkglasses · 21-06-2018 3:46pm

autumnbelle wrote: »

How much does it work out at a month? I asked them on the helpline and they said they will give the figure if your approved but I would like to know if its much extra on top of say a €200k mortgage monthly

92.50, reducing each year thereafter. MPI is calculated as 0.555% of the capital outstanding divided by 12 for the monthly premium.

Mark Hamill · 21-06-2018 6:44pm

autumnbelle wrote: »

How much does it work out at a month? I asked them on the helpline and they said they will give the figure if your approved but I would like to know if its much extra on top of say a €200k mortgage monthly

Mine was quoted as ~€74 for €160k mortgage.

autumnbelle · 21-06-2018 9:36pm

Mark Hamill wrote: »

Mine was quoted as ~€74 for €160k mortgage.

Mark what were the mortgage repayments on that amount thanks

Mark Hamill · 22-06-2018 7:54am

autumnbelle wrote: »

Mark what were the mortgage repayments on that amount thanks

The mortgage repayment is €600 (€675 including the MPI)

leinster02 · 22-06-2018 12:47pm

Hi all.Just heard that we have been approved for almost 30 grand less than we applied for.Lady on phone said that it was because they considered we did not have enough finance to take care of solicitors...have since saved approx 7 grand more since we applied over 10 weeks ago.Anyone here had any luck appealing the amount ?Thanks for responses in advance.

autumnbelle · 22-06-2018 1:21pm

leinster02 wrote: »

Hi all.Just heard that we have been approved for almost 30 grand less than we applied for.Lady on phone said that it was because they considered we did not have enough finance to take care of solicitors...have since saved approx 7 grand more since we applied over 10 weeks ago.Anyone here had any luck appealing the amount ?Thanks for responses in advance.

Id say you could definitely appeal it

stryker mcqueen · 25-06-2018 7:11pm

We have applied to Dublin city council , fingal and South Dublin , DCC and fingal were an absolute pleasure to deal with , South Dublin made it difficult to even apply but we got there in the end......

Application to SDCC went in 5 weeks ago and we have just received a letter of rejection , they claim this went to external underwriters but I am highly doubtful as our other applications went in 3 weeks earlier and we've heard nothing so far .

Reasons given

1.
2 years self employed audited accounts incomplete (my wife is 3 weeks short but is now into year 3 of being self employed)

2.
Business revenue details not signed on application form (this makes no sense to either of us)

3.
Original Bank statement must be supplied , internet statements cannot be accepted (I bank with online bank N26 so this is not possible )

A bit dejected but I am hopeful that this is more down to this particular council and their backwards system rather than our application , the above rejection reasons seem ridiculous so I refuse to believe the application ever went to external underwriters and this was an internal decision.

Of course we rang them and they told us they have no input , there is a serious Gap in communication with this scheme unfortunately.

Anyway haven't heard from Dublin city yet but now 8 weeks since applying so hopefully hearing something in the next couple of weeks.

Apologies for the rant , just a little pissed off

OCDee · 26-06-2018 9:24am

stryker mcqueen wrote: »

We have applied to Dublin city council , fingal and South Dublin , DCC and fingal were an absolute pleasure to deal with , South Dublin made it difficult to even apply but we got there in the end......

Application to SDCC went in 5 weeks ago and we have just received a letter of rejection , they claim this went to external underwriters but I am highly doubtful as our other applications went in 3 weeks earlier and we've heard nothing so far .

Reasons given

1.
2 years self employed audited accounts incomplete (my wife is 3 weeks short but is now into year 3 of being self employed)

2.
Business revenue details not signed on application form (this makes no sense to either of us)

3.
Original Bank statement must be supplied , internet statements cannot be accepted (I bank with online bank N26 so this is not possible )

A bit dejected but I am hopeful that this is more down to this particular council and their backwards system rather than our application , the above rejection reasons seem ridiculous so I refuse to believe the application ever went to external underwriters and this was an internal decision.

Of course we rang them and they told us they have no input , there is a serious Gap in communication with this scheme unfortunately.

Anyway haven't heard from Dublin city yet but now 8 weeks since applying so hopefully hearing something in the next couple of weeks.

Apologies for the rant , just a little pissed off

We have had similar experience in Cork. Vague reasons for original rejection. Sent in appeal 6 weeks ago with all additional documentation and re-calculations made as clear as we could make out, given the information. Still no word on appeal 6 weeks on. Our original application went in in March. So we are over 3 months in the process and still no idea where we stand. Still hoping there's light at the end..

Ailbag · 26-06-2018 9:44pm

stryker mcqueen wrote: »

We have applied to Dublin city council , fingal and South Dublin , DCC and fingal were an absolute pleasure to deal with , South Dublin made it difficult to even apply but we got there in the end......

Application to SDCC went in 5 weeks ago and we have just received a letter of rejection , they claim this went to external underwriters but I am highly doubtful as our other applications went in 3 weeks earlier and we've heard nothing so far .

Reasons given

1.
2 years self employed audited accounts incomplete (my wife is 3 weeks short but is now into year 3 of being self employed)

2.
Business revenue details not signed on application form (this makes no sense to either of us)

3.
Original Bank statement must be supplied , internet statements cannot be accepted (I bank with online bank N26 so this is not possible )

A bit dejected but I am hopeful that this is more down to this particular council and their backwards system rather than our application , the above rejection reasons seem ridiculous so I refuse to believe the application ever went to external underwriters and this was an internal decision.

Of course we rang them and they told us they have no input , there is a serious Gap in communication with this scheme unfortunately.

Anyway haven't heard from Dublin city yet but now 8 weeks since applying so hopefully hearing something in the next couple of weeks.

Apologies for the rant , just a little pissed off

I used internet statements and got approved no bother - they were even half the original size because I was low on ink and paper! My bank wouldn't give me original statements and I have paperless banking so no other option...

Government Funds Local Authority Housing Scheme

Comments