Government Funds Local Authority Housing Scheme

bush · 08-02-2018 4:32pm

So in that case you can't get more than 3.5 your salary as that's the maximum the banks will give you? The calculator on the website will offer you way over 3.5 your salary. That calculator doesn't make any sense. I doubt they will give anywhere near the money that calculator says.
I was in ulster bank and asked for 3.5 my wages. They put my numbers in the computer but then they could only offer just over half my salary despite my savings being excellent.
In this case will I just go ahead with this application and use the letter with the low offer to get on the government mortgage?

Lolle06 · 08-02-2018 4:34pm

BattleCorp wrote: »

What I'd like is to be offered the same cheap interest rates that the Government are offering seeing as I am currently being gouged by the banks.

Yes, that does seem unfair considering that rising interest rates will be on the cards for the majority of mortgage holders. I don’t quite understand why the‘d changed the former annuity loan scheme - that one had only variable rates on offer and all applications had to be stress- tested for rising interest rates, just like other mortgage lenders do.
Whereas the new scheme will be subsidized by the tax-payers for only the chosen few who get approval for it.

quadrifoglio verde · 08-02-2018 4:38pm

bush wrote: »

So in that case you can't get more than 3.5 your salary as that's the maximum the banks will give you? The calculator on the website will offer you way over 3.5 your salary. That calculator doesn't make any sense. I doubt they will give anywhere near the money that calculator says.
I was in ulster bank and asked for 3.5 my wages. They put my numbers in the computer but then they could only offer just over half my salary despite my savings being excellent.
In this case will I just go ahead with this application and use the letter with the low offer to get on the government mortgage?

The department of housing or the housing agency said last week that people can't game the system. They can't go and ask for 320k and then ask the local authority for 200k.
It was in Tuesdays times (30th).

GingerLily · 08-02-2018 4:39pm

autumnbelle wrote: »

Because you would have a fixed rate of 2% for full term of the mortgage

Which is why you need to prove that you've been refused a loan - otherwise everyone would opt for this scheme.

Darkglasses · 08-02-2018 7:29pm

bush wrote: »

So in that case you can't get more than 3.5 your salary as that's the maximum the banks will give you? The calculator on the website will offer you way over 3.5 your salary. That calculator doesn't make any sense. I doubt they will give anywhere near the money that calculator says.
I was in ulster bank and asked for 3.5 my wages. They put my numbers in the computer but then they could only offer just over half my salary despite my savings being excellent.
In this case will I just go ahead with this application and use the letter with the low offer to get on the government mortgage?

The County Council have their own way to calculate your borrowing capacity - they will only advance a mortgage whereby the repayments will come to 35% of your net monthly income or less (net of living expenses, loan repayments, etc.). You'll need to contact the loans department of your CoCo and get them to use the housing agency's calculator, it's different to the one on the website.

foodiewarrior · 12-02-2018 8:17pm

Story lads!

So here's my story. I wanted to buy an apartment in Dublin. Applied to the banks. And of course i got salary * 3.5. Not enough. So I started looking a round the commuter area (Co. Meath, Kildare, Louth). Would spend 2 and a half hours per day on the M50 and other M/N roads.

So then the government scheme was announced. rebuildingirelandhomeloan.ie
There is a phone there you can call and ask questions. They answered most of my questions. But on some even they don't have the answers yet.

So here's the details. You do not have to find a property first. You just write down the area, town, Co. or what ever.
You need to apply in the County where you want to buy. Not in the county you live in. The wording on the application form is wrong. So the thing is if you apply in the South Dublin County you will not be able to buy in Fingal or Kildare, only South Dublin Co.

Getting all the paperwork is pretty straight forward.

So then I went into the South Dublin County Council. And they told me they have special extra requirements. Just like robbo25 said. It says:
"For applicants born outside the Republic of Ireland, please submit proof that you do not currently own or have never been the registered owners of land or property in your country of origin. We will require original certified documents (translated into English) from your country of origin."
Also in South Dublin County we have to join a special MRPP Scheme. And the processing of the application lasts 6-8 weeks.

I managed to get a document that proves I do not own property in the city I had been living before coming to Ireland. I hope that will be sufficient.

Now the part about being refused by the banks / insufficient funding. This is a very shady area. When I rang Rebuilding Ireland they said that if the banks offered me a certain amount, but that amount is not sufficient to buy an apartment in my area, and the calculator on the rebuildingirelandhomeloan.ie showed I can borrow more, and I prove that I can make the monthly payments that's it. You don't have to get rejected by a bank.
Now everybody I met has a different interpretation of this.

Lads keep us updated.

bush · 12-02-2018 9:16pm

What if the banks offer is sufficient to buy something that you wouldnt want to live in? Seems like a very grey area.

robbo25 · 12-02-2018 10:27pm

Hi foodiewarrior, can I ask if you got your letter from the UK? I am finding it very difficult to get some proof that I never owned a property in Scotland. Was onto the Registers of Scotland and they can only run a search on my name but this cannot be tied back to me as they don't cross reference against my dob or National Insurance number. I have found another number for Revenue Scotland and hopefully they can help but I losing my patience with this now. It's the only thing holding us up apart from waiting on my P60 so I can get my P21. Guess this will be holding most people up at this time of the year too though??

I had two insufficient offers from the banks, not rejections and they didn't say anything when they went through my application last week in South Dublin CC.

surrender monkey · 12-02-2018 10:34pm

robbo25 wrote: »

Hi foodiewarrior, can I ask if you got your letter from the UK? I am finding it very difficult to get some proof that I never owned a property in Scotland. Was onto the Registers of Scotland and they can only run a search on my name but this cannot be tied back to me as they don't cross reference against my dob or National Insurance number. I have found another number for Revenue Scotland and hopefully they can help but I losing my patience with this now. It's the only thing holding us up apart from waiting on my P60 so I can get my P21. Guess this will be holding most people up at this time of the year too though??

I had two insufficient offers from the banks, not rejections and they didn't say anything when they went through my application last week in South Dublin CC.

In Ireland there was tax relief at source on mortgages so the revenue commissioners can confirm if a person has claimed this relief.Does anything like this operate in any of your home countries. This mortgage is only for first time buyers so you have to prove you have never owned property before. Easier for Irish nationals I suppose !

syndrome777 · 13-02-2018 7:04pm

surrender monkey wrote: »

In Ireland there was tax relief at source on mortgages so the revenue commissioners can confirm if a person has claimed this relief.Does anything like this operate in any of your home countries. This mortgage is only for first time buyers so you have to prove you have never owned property before. Easier for Irish nationals I suppose !

Do you by any chance now does this refer only to owning through a mortgage or even if you own say 1/8 of grandparents inherited house?
thanks

The_Conductor · 13-02-2018 7:30pm

syndrome777 wrote: »

Do you by any chance now does this refer only to owning through a mortgage or even if you own say 1/8 of grandparents inherited house?
thanks

Its if you have owned property previously- it is moot how it was funded- or whether you still own it (or not).

SNNUS · 14-02-2018 6:51pm

I wonder what the selection criteria is if they have so many applications?? On a first come first served? It's a shame
they cannot approve in a shorter time frame.

Junadl · 14-02-2018 10:08pm

I have applied for this. Fingers crossed! Anyone else applied?

SNNUS · 14-02-2018 10:19pm

Junadl wrote: »

I have applied for this. Fingers crossed! Anyone else applied?

Yep, application is in.. wonder how they pick who gets it

Junadl · 14-02-2018 10:24pm

SNNUS wrote: »

Yep, application is in.. wonder how they pick who gets it

Great. Be good to ask if you've heard back in a few weeks. There must be thousands of eligible applicants. The next month or so is going to be hard waiting for decision!

SNNUS · 14-02-2018 10:43pm

Junadl wrote: »

Great. Be good to ask if you've heard back in a few weeks. There must be thousands of eligible applicants. The next month or so is going to be hard waiting for decision!

Best of luck, I think there is about 1000 loans available

Junadl · 14-02-2018 11:36pm

SNNUS wrote: »

Best of luck, I think there is about 1000 loans available

Best of luck to you too 🍀

foodiewarrior · 15-02-2018 12:10am

What kind of evidence from the banks / lenders (rejections) did you submit?

Junadl · 15-02-2018 12:18am

foodiewarrior wrote: »

What kind of evidence from the banks / lenders (rejections) did you submit?

I filled in online bank mortgage app and printed out. Boom.

foodiewarrior · 15-02-2018 12:19am

Junadl wrote: »

I filled in online bank mortgage app and printed out. Boom.

And did you get approved or rejected?

Junadl · 15-02-2018 12:24am

foodiewarrior wrote: »

And did you get approved or rejected?

Rejected. We have kids so that makes things difficult!

Bargain_Hound · 15-02-2018 10:41am

Did anybody request the hpl1 form to be completed by revenue? I'm still waiting on mine to come back before I can submit my application.:(

Mark Hamill · 15-02-2018 10:42am

foodiewarrior wrote: »

You need to apply in the County where you want to buy. Not in the county you live in. The wording on the application form is wrong. So the thing is if you apply in the South Dublin County you will not be able to buy in Fingal or Kildare, only South Dublin Co.

I was told the opposite by the number on the site. As all of the applications are going to the same central area for processing, it doesn't matter where you actually apply (their words).

Junadl · 15-02-2018 11:55am

Bargain_Hound wrote: »

Did anybody request the hpl1 form to be completed by revenue? I'm still waiting on mine to come back before I can submit my application.:(

Yes, sent a sae with it for them to post back. Came back very quick in about 3 days after sending

Lolle06 · 15-02-2018 3:07pm

Mark Hamill wrote: »

I was told the opposite by the number on the site. As all of the applications are going to the same central area for processing, it doesn't matter where you actually apply (their words).

Are these applications not processed by the county council where the property is located? I know that all applications need to be approved by the Housing Agency in Dublin, but they will go back to the local authority where the property is being purchased, I thought? Everything else would be a bit confusing, surely!

Also, I am not entirely sure, if you can live in Galway and try to purchase a property in Kildare (as an example), on this scheme?! But maybe I am wrong and this wouldn’t be a requirement at all.

I doubt that even the people who have to deal with these applications, know all the ins and outs about this new home loan scheme.

Darkglasses · 15-02-2018 9:24pm

SNNUS wrote: »

Best of luck, I think there is about 1000 loans available

Not quite the case - there is 200 million euro made available nationwide at this interest rate. Once it has been used up, more money will be made available - but it's highly unlikely to be at as low an interest rate.

SNNUS · 15-02-2018 10:02pm

Darkglasses wrote: »

Not quite the case - there is 200 million euro made available nationwide at this interest rate. Once it has been used up, more money will be made available - but it's highly unlikely to be at as low an interest rate.

Ah ok I did not know that, we will see how it goes. Supply may be the problem..

Bass Reeves · 16-02-2018 9:54am

Darkglasses wrote: »

Not quite the case - there is 200 million euro made available nationwide at this interest rate. Once it has been used up, more money will be made available - but it's highly unlikely to be at as low an interest rate.

At an average loan of 180K it equates to 1110 loans. I imagine if the money spread according to population to all local authorities the average loan rate will be below 200k. While the next tranche may not be at as low an interest rate it may not be much more expensive either. Government is able to access bond money at lower interest rates than this.

The_Conductor · 16-02-2018 11:09am

Bass Reeves wrote: »

At an average loan of 180K it equates to 1110 loans. I imagine if the money spread according to population to all local authorities the average loan rate will be below 200k. While the next tranche may not be at as low an interest rate it may not be much more expensive either. Government is able to access bond money at lower interest rates than this.

10 year bond rates on Irish government debt- between 1997 and 2007 averaged 3.6% and went as high as 5.35%. This is seen as 'normal' rates. Its entirely plausible that the current rate (0.71%) will increase by 25 to 30 basis points- and this corresponds with guidance from Merrion and other brokers.

Highest recent rate which was actually accessed by the NTMA- 11.95% June 2011.

Rates are going up. The current envelope- is at a rate you're never going to see ever again.

SNNUS · 16-02-2018 12:00pm

Can you avail of the help to buy scheme for new builds if you get this mortgage?

Mark Hamill · 16-02-2018 12:02pm

Lolle06 wrote: »

Are these applications not processed by the county council where the property is located? I know that all applications need to be approved by the Housing Agency in Dublin, but they will go back to the local authority where the property is being purchased, I thought? Everything else would be a bit confusing, surely!

Also, I am not entirely sure, if you can live in Galway and try to purchase a property in Kildare (as an example), on this scheme?! But maybe I am wrong and this wouldn’t be a requirement at all.

I doubt that even the people who have to deal with these applications, know all the ins and outs about this new home loan scheme.

Guy on the phone said it was somewhere in the midlands that they are all sent and processed. There are already county council based mortgage schemes, that must be processed in the county council you are buying in, but this scheme is country wide, so apparently is different.

GingerLily · 16-02-2018 12:49pm

SNNUS wrote: »

Can you avail of the help to buy scheme for new builds if you get this mortgage?

You may run into issues if approval isn't given within the contract deadlines. New build literally have queues of people waiting so developers don't have to wait.

Hopefully you would get it approved, but I would imagine you'd want be far enough along in the application process before putting a deposit down on a new build.

SNNUS · 16-02-2018 3:30pm

I got receipt of my application and a reference number from the county council.

The_Conductor · 16-02-2018 3:53pm

SNNUS wrote: »

Can you avail of the help to buy scheme for new builds if you get this mortgage?

Yes. As per above- watch out that you make the relevant deadlines.

Junadl · 16-02-2018 8:03pm

SNNUS wrote: »

I got receipt of my application and a reference number from the county council.

When did you send it in and how long to get the application confirmation and number?

SNNUS · 16-02-2018 8:04pm

Junadl wrote: »

When did you send it in and how long to get the application confirmation and number?

It was the bones of 2 weeks.

Danv1account · 16-02-2018 8:42pm

SNNUS wrote: »

Can you avail of the help to buy scheme for new builds if you get this mortgage?

Received application back stating the first time buyers scheme cannot be used in accordance with home loan.

Has anyone else heard differently?

SNNUS · 16-02-2018 9:06pm

Danv1account wrote: »

Received application back stating the first time buyers scheme cannot be used in accordance with home loan.

Has anyone else heard differently?

From Irish times...

Can I get Help to Buy and the new mortgage scheme?

The new scheme is available for both new and second hand homes, so first time buyers will be able to apply for the 5 per cent tax Help to Buy rebate through the Revenue Commissioners, as well as applying for a low cost mortgage through this scheme. This has been confirmed by the Department of Housing.

Danv1account · 16-02-2018 9:09pm

SNNUS wrote: »

From Irish times...

Can I get Help to Buy and the new mortgage scheme?

The new scheme is available for both new and second hand homes, so first time buyers will be able to apply for the 5 per cent tax Help to Buy rebate through the Revenue Commissioners, as well as applying for a low cost mortgage through this scheme. This has been confirmed by the Department of Housing.

Thanks for that. I was under the impression that it could be used also.

Strange that this was the reason for not going forward with the application.

SNNUS · 16-02-2018 9:20pm

Danv1account wrote: »

Thanks for that. I was under the impression that it could be used also.

Strange that this was the reason for not going forward with the application.

Strange considering they could still offer you the loan and advise that you cannot get the help to buy scheme .. sounds very strange and maybe they just fobbed you off..

I would pursue it more

stryker mcqueen · 21-02-2018 8:08pm

foodiewarrior wrote: »

And did you get approved or rejected?

who's online applications did you use? Im brand new to all this mortgage stuff and cant even get to the rejection process when talking on the phone.

Junadl · 21-02-2018 8:49pm

Has anyone else applied and got receipt of application and council number? I have applied. No number yet. No response in 5 days by email to lady who had been in contact with quick replies. Bit worried now

Junadl · 21-02-2018 8:52pm

stryker mcqueen wrote: »

who's online applications did you use? Im brand new to all this mortgage stuff and cant even get to the rejection process when talking on the phone.

AIB have online application and I can't remember the other one I used.

SNNUS · 21-02-2018 9:14pm

Junadl wrote: »

Has anyone else applied and got receipt of application and council number? I have applied. No number yet. No response in 5 days by email to lady who had been in contact with quick replies. Bit worried now

Probably takes a few weeks to get the reference number.

ad1234 · 25-02-2018 8:43am

Has anyone had any offers or rejections yet? We are 2 weeks into waiting on wicklow to get back to us.. to be fair there is only one guy working on it there and he's been clearly told to give as little info on our application as possible... just getting a you'll hear between 4 to 6 weeks maybe.... maybe sooner, he's helpful and hands tied but I want to know more haha. Just wondering do they just say no or will they ask for more info pr proof if needed. Trying to get a mortgage since Nov. All insufficient offers!...

terrified now after months of the banks breaking my spirit!

SNNUS · 25-02-2018 9:51am

ad1234 wrote: »

Has anyone had any offers or rejections yet? We are 2 weeks into waiting on wicklow to get back to us.. to be fair there is only one guy working on it there and he's been clearly told to give as little info on our application as possible... just getting a you'll hear between 4 to 6 weeks maybe.... maybe sooner, he's helpful and hands tied but I want to know more haha. Just wondering do they just say no or will they ask for more info pr proof if needed. Trying to get a mortgage since Nov. All insufficient offers!... terrified now after months of the banks breaking my spirit!

I applied 3 weeks ago and I am in the same boat , thus far I only have a reference number . I hope the decision is closer to 4 weeks rather than 6!

I have no idea would they just reject your application or advise whet is the max they can lend you.

Waiting is the hardest game

ad1234 · 25-02-2018 11:24am

SNNUS wrote: »

I applied 3 weeks ago and I am in the same boat , thus far I only have a reference number . I hope the decision is closer to 4 weeks rather than 6!

I have no idea would they just reject your application or advise whet is the max they can lend you.

Waiting is the hardest game

We havent even got an application number yet! he just took the forms and said you'll hear in 4-6 weeks... good to hear im not alone in a way though on waiting... maybe im just used to the hoops the banks wanted us to run though daily and they do it differently...

stryker mcqueen · 25-02-2018 2:15pm

SNNUS wrote: »

I applied 3 weeks ago and I am in the same boat , thus far I only have a reference number . I hope the decision is closer to 4 weeks rather than 6!

I have no idea would they just reject your application or advise whet is the max they can lend you.

Waiting is the hardest game

Kind of a recycled question but just on the rejection letters. Are you guys providing a written notice of an insufficient offer on official headed paper?

I'm ringing banks , asking for x amount and just being told i can't have it basically lol....end of discussion , no mention of any written confirmation or the like , what am i missing?

SNNUS · 25-02-2018 3:32pm

stryker mcqueen wrote: »

Kind of a recycled question but just on the rejection letters. Are you guys providing a written notice of an insufficient offer on official headed paper?

I'm ringing banks , asking for x amount and just being told i can't have it basically lol....end of discussion , no mention of any written confirmation or the like , what am i missing?

I had insufficient sanction from one bank and a rejection from another.

They have changed the requirement now though so even printerd online mortgage calculator results will do.

AIB and EBS do online mortgage calculators, enter home much you want on those , it will tell you you are well short, just print these and you are sorted.

stryker mcqueen · 25-02-2018 3:58pm

SNNUS wrote: »

I had insufficient sanction from one bank and a rejection from another.

They have changed the requirement now though so even printerd online mortgage calculator results will do.

AIB and EBS do online mortgage calculators, enter home much you want on those , it will tell you you are well short, just print these and you are sorted.

Great thanks , wife is self employed so the online calculator only lets me go so far before they tell me to contact them , might just put her in as PAYE for the purpose of the online quote

Government Funds Local Authority Housing Scheme

Comments