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22-01-2018, 14:08   #16
GLaDOS
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Myself and my girlfriend are a little above the joint threshold.

Sometimes I wonder why we bother working.
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22-01-2018, 14:18   #17
Pelvis
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There's a website for this.

http://rebuildingirelandhomeloan.ie/

Using the calculator provided. A single applicant earning 50k gross with zero monthly commitments living in Dublin on a 25 year fixed rate of 2% can get an "Indicative Maximum Loan Amount" of €251,167, with repayments being €1,064.

WTF??? Five times their salary?? That can't be right? A bank will only give 175k ffs.
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22-01-2018, 14:19   #18
cruizer101
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I'm due a rise which would take me above a bit above the limit, nearly having to consider should I try negotiate a lower rise, the mind boggles at the idea this government comes up with.

€200 Million, why not just build houses with it for feck sake
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22-01-2018, 14:19   #19
LookingFor
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Quote:
Originally Posted by Pelvis View Post
There's a website for this.

http://rebuildingirelandhomeloan.ie/

Using the calculator provided. A single applicant earning 50k gross with zero monthly commitments living in Dublin on a 25 year fixed rate of 2% can get an "Indicative Maximum Loan Amount" of €251,167, with repayments being €1,064.

WTF??? Five times their salary?? That can't be right? A bank will only give 175k ffs.
On a 30 year they can get €278.5K.

It is completely perverse. Someone just above the threshold on 60K is limited to 210K in a mortgage, and will be competing with this now on the market.
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22-01-2018, 14:21   #20
Varik
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The LTI limits still apply, just seen mention of the 10% deposit.
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22-01-2018, 14:22   #21
markodaly
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A bit bizarre. The issue is not that people cannot get mortgages, is that there are too few properties out there to buy. This fixes a problem that does not exist and will just push up the low end of the market. Also curious of the details of this as it seems the government is not competing with banks for mortgages? Did they get the go ahead from Europe on this as it seems to circumvent banking lending rules.
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22-01-2018, 14:32   #22
ted1
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The government will be providing 200m to local authorities this year to provide low interest mortgages (2%-2.25% over 25-30 years) for people who have been denied by the banks (at least twice). Sole applicants must earn no more than 50k, with couples earning no more than 75k. If buying in Dublin, Cork or Galway then you could borrow up to €320k.

https://www.irishtimes.com/news/poli...heme-1.3363411

I don't really understand this. If you're a couple and two banks has deemed you're not eligible to get a mortgage, then you can go to your local authority and get a potentially larger mortgage for a lower interest rate. While someone else in similar circumstances but who may have been more prudent financially, is rewarded with a lower mortgage by the bank at a higher interest.

Am I missing something?
Banks will stress test repayments at much higher interest rates , however these are fixed at 2.25% so will pass a stress test
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22-01-2018, 14:39   #23
LookingFor
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The LTI limits still apply, just seen mention of the 10% deposit.
Not according to their calculator. Pop in 50K and a 30 year term and you get value of 5.6 times gross. A deposit rule of 10% applies*, but Loan to Income Value limits seem out the window for this.

*That rule typically turns into 20% on the private market for single beds, and even some two beds, in Dublin for a first time buyer. If it remains at 10% under this scheme, it's another boost for buyers under this scheme vs those in the open market.

Last edited by LookingFor; 22-01-2018 at 14:42.
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22-01-2018, 14:47   #24
Colonel Claptrap
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Well that's one way to buy an election.

Let's see if I have this right. Rather than save for a deposit wisely, curb my spending habits, pay down my loans and cut up my credit card I'm now being encouraged to abuse my overdraft facility, take on an extra dependent (get my GF knocked up), stop working hard (in case I get a pay rise) and wait for the state to hand me a dirt cheap mortgage with a rock bottom rate locked in for 25 years?

I'm literally being encouraged to "game the system".
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22-01-2018, 14:53   #25
ted1
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Well that's one way to buy an election.

Let's see if I have this right. Rather than save for a deposit wisely, curb my spending habits, pay down my loans and cut up my credit card I'm now being encouraged to abuse my overdraft facility, take on an extra dependent (get my GF knocked up), stop working hard (in case I get a pay rise) and wait for the state to hand me a dirt cheap mortgage with a rock bottom rate locked in for 25 years?

I'm literally being encouraged to "game the system".
By other Euro zone countries It’s not a rock bottom rate , it’s the rate that all banks especially state owned ones should be offering
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22-01-2018, 15:08   #26
McGrath5
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Flooding the market with cheap credit, a fantastic idea that has never been tried before.....oh wait
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22-01-2018, 16:00   #27
irish_major
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What would happen here if your original application was rejected because of an average ICB report?
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22-01-2018, 16:04   #28
Fanny Wank
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Quote:
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By other Euro zone countries It’s not a rock bottom rate , it’s the rate that all banks especially state owned ones should be offering
You can actually repossess in other countries though
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22-01-2018, 16:09   #29
Wabbit Ears
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Seriously though... we have low supply so the soloution is to increase demand?

Conspiricy theory time... The powers that be are purposefully orchestrating another crash. I can think of no other reason why anyone would have thought this is a good idea if you werent setting something up for a fall.
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22-01-2018, 16:10   #30
Colonel Claptrap
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By other Euro zone countries It’s not a rock bottom rate , it’s the rate that all banks especially state owned ones should be offering
25-30 years fixed?
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