Government Funds Local Authority Housing Scheme

Mark Henderson · 21-03-2018 12:10pm

Wheeliebin30 wrote: »

Very easy to start off in a low paid job, get the mortgage then suddenly find a much higher income job.

This country is truly ****ed.

True but that's what happens when we keep voting in the same people election after election.

wowwee123 · 22-03-2018 5:38pm

Hi All,

I'm a little confused so if someone can clarify that would be great,
So as a couple we earn just under the 75k mark.
We were told we would need to get 2 rejections letter for the amount we are looking to apply for with the rebuilding homeloan.
We ideally would like a mortgage of €280k for Dublin but 2 banks we have applied for will only let us apply for 3.5 times our combined wages (as these are the rules)
This leaves us with €255k. So how does one apply for up to €320k if the banks will not even entertain you for more than 3.5 times your wage?

Are there ways around this?

Also we sent off the part to the revenue to sign off weeks ago but still waiting on them to stamp and send back. Has anyone been delayed by this?
Thanks

voodosheeb · 22-03-2018 5:54pm

theres a calculator on the rebuilding ireland home loan site, but it isn't accurate, so give them a call and they'll be able to tell you/email you the details , but if you make just under 75k then I say you'll get 280k if not more

SNNUS · 24-03-2018 12:49pm

Anyone know how much the MPI is ?

Grocery_bag · 25-03-2018 10:43am

Has anyone got approval yet ? I was told you need to be very lucky to get more than 140,000 euros

ad1234 · 25-03-2018 11:20am

Grocery_bag wrote: »

Has anyone got approval yet ? I was told you need to be very lucky to get more than 140,000 euros

Who told you that? Was that in relation to your situation alone? What did they Base it on?
We're at week 6 now still radio silence.

SNNUS · 25-03-2018 11:25am

Grocery_bag wrote: »

Has anyone got approval yet ? I was told you need to be very lucky to get more than 140,000 euros

I'm sure every case is different.. 7 weeks in now and not a peep!

-jellybelly- · 25-03-2018 8:23pm

SNNUS wrote: »

Anyone know how much the MPI is ?

My understanding is it is near 0.0057% of the outstanding balance. That means it starts out expensive but gets cheaper as you clear the mortgage

robbo25 · 25-03-2018 9:18pm

i got a call after 2 weeks to query something on the form, that was two weeks ago and haven't heard back yet....

stryker mcqueen · 25-03-2018 9:29pm

I know of someone who got offered just over 200k , 1 income household with a couple of kids , went into city council in person with all documents in order and got offered it there and then * I found this bit hard to believe personally but apparently this was the case ...... The offer was over 5 times the salary .....so going in face to face seems to be the way to go

SNNUS · 25-03-2018 9:39pm

stryker mcqueen wrote: »

I know of someone who got offered just over 200k , 1 income household with a couple of kids , went into city council in person with all documents in order and got offered it there and then * I found this bit hard to believe personally but apparently this was the case ...... The offer was over 5 times the salary .....so going in face to face seems to be the way to go

No way that happened, maybe they advised him that is approx what he can get but all applications need to be sent to the underwriters etc...

stryker mcqueen · 25-03-2018 9:56pm

SNNUS wrote: »

No way that happened, maybe they advised him that is approx what he can get but all applications need to be sent to the underwriters etc...

That's what I said , I presume wires have been crossed .

I would imagine they were given a figure as the max they could be approved for , pending approval from underwriting

Lolle06 · 26-03-2018 8:19am

stryker mcqueen wrote: »

I know of someone who got offered just over 200k , 1 income household with a couple of kids , went into city council in person with all documents in order and got offered it there and then * I found this bit hard to believe personally but apparently this was the case ...... The offer was over 5 times the salary .....so going in face to face seems to be the way to go

Did he get the loan offer then and there in writing? I find that hard to believe too, as the County council can’t approve a house purchasing loan themselves. The application goes through the underwriting process at the housing agency and then back to the county council. This process takes several weeks/ months! The guy probably had a personal meeting and got a loan amount he „possibly could get“, briefly calculated by them and based on the provided pay slips/ outgoings. They do not give that in writing though - until the application get’s fully approved - though there is still no guarantee the agency will do that. Maybe he misunderstood?

I forgot to add: on the old purchase - or annuity - loan scheme, you‘d usually got invited to a personal meeting. Just like the banks do, they wanted to meet the applicant in person before they‘d forward the application to the agency for further approval. At this meeting they talked through your figures and gave you an idea if you‘d have a chance to get the loan amount or not. If not, you‘d get a letter shortly after. The meeting usually took place 4- 6 weeks after you sent in the application. But I have no idea if that is still that way for the Rebuilding Ireland loan scheme though.

stryker mcqueen · 26-03-2018 9:16am

Lolle06 wrote: »

Did he get the loan offer then and there in writing? I find that hard to believe too, as the County council can’t approve a house purchasing loan themselves. The application goes through the underwriting process at the housing agency and then back to the county council. This process takes several weeks/ months! The guy probably had a personal meeting and got a loan amount he „possibly could get“, briefly calculated by them and based on the provided pay slips/ outgoings. They do not give that in writing though - until the application get’s fully approved - though there is still no guarantee the agency will do that. Maybe he misunderstood?

I forgot to add: on the old purchase - or annuity - loan scheme, you‘d usually got invited to a personal meeting. Just like the banks do, they wanted to meet the applicant in person before they‘d forward the application to the agency for further approval. At this meeting they talked through your figures and gave you an idea if you‘d have a chance to get the loan amount or not. If not, you‘d get a letter shortly after. The meeting usually took place 4- 6 weeks after you sent in the application. But I have no idea if that is still that way for the Rebuilding Ireland loan scheme though.

See above post , I don't believe it either , this is recycled info I'm getting so presume they were told the max amount they could be offered

izzyflusky · 26-03-2018 9:19am

Quick question. I was under the understanding that for this scheme only a 3% deposit is needed. I checked the website and it says 10%. Which one is it?

stryker mcqueen · 26-03-2018 9:25am

izzyflusky wrote: »

Quick question. I was under the understanding that for this scheme only a 3% deposit is needed. I checked the website and it says 10%. Which one is it?

always been 10%

izzyflusky · 26-03-2018 10:55am

stryker mcqueen wrote: »

always been 10%

So the only difference is the interest rate and the fact that they might lend you a higher amount?

jimmyendless · 26-03-2018 10:56am

izzyflusky wrote: »

So the only difference is the interest rate and the fact that they might lend you a higher amount?

Ya, not confined to the 3.5 times salary restriction.

Bargain_Hound · 26-03-2018 11:00am

Received my anticipated rejection letter. Expected it due to small salary increase right before I applied pushing me just over the line. Originally it was stated on the website the salary caps apply for the 2017 earning year. Can't find a mention of it now :P

Lolle06 · 26-03-2018 12:47pm

izzyflusky wrote: »

Quick question. I was under the understanding that for this scheme only a 3% deposit is needed. I checked the website and it says 10%. Which one is it?

No, under the old Annuity loan scheme a 3% deposit was needed. That one had a variable interest rate though and the loan amounts were lower.
The new RI loan scheme requires a 10% deposit, but has a higher loan amount (especially in Dublin, Cork & Galway) and a fixed interest rate for the loan duration.

Lolle06 · 26-03-2018 12:59pm

jimmyendless wrote: »

Ya, not confined to the 3.5 times salary restriction.

The old variable interest rate loan scheme was stress-tested. Just like the banks, they would refuse any application if the monthly repayment exceeded 33- 35% of the household income (minus other loan repayments/ maintenance payments etc.).

The new loan scheme has a set interest rate, therefore the stress-test against rising interest rates is redundant.

Peanut99 · 28-03-2018 1:20pm

Has anybody here had their application approved yet?

Or does anyone know of anyone who has actually gotten approval for the RI home loan yet?

SNNUS · 28-03-2018 1:27pm

Peanut99 wrote: »

Has anybody here had their application approved yet?

Or does anyone know of anyone who has actually gotten approval for the RI home loan yet?

Nope.. think it's 4-6 months rather than 4-6 weeks!!

wowwee123 · 28-03-2018 4:40pm

Hi guys, I'm finding it really really hard to get rejection letters for the amount we want.

So I was on to the homeloan team and they said you must have 2 x rejection letters for the amount that you are looking for from CC.
Our combined wages x 3.5 times is 255k roughly but we are looking for about 285k.
BOI, UB - will ONLY allow me to apply for 255k
I think KBC said they will consider sending through an application for 285k but i'm struggling to find another bank to get a rejection of €285k

Has anyone got any advice at all?

izzyflusky · 28-03-2018 9:06pm

Quick question. I have friends thinking about applying as they have just been rejected by the bank.
Their basic salary is below 75k but if a monthly bonus is added to it they go above the rate by about 2k a year. Would they qualify? It is not a guaranteed bonus but he has been getting it for the past couple of years at least without fail.

robbo25 · 28-03-2018 9:25pm

wowwee123 wrote: »

Hi guys, I'm finding it really really hard to get rejection letters for the amount we want.

So I was on to the homeloan team and they said you must have 2 x rejection letters for the amount that you are looking for from CC.
Our combined wages x 3.5 times is 255k roughly but we are looking for about 285k.
BOI, UB - will ONLY allow me to apply for 255k
I think KBC said they will consider sending through an application for 285k but i'm struggling to find another bank to get a rejection of €285k

Has anyone got any advice at all?

Could you apply to them and use them as insufficient offers? My 2 offers would not get us a one bed apartment in our area. Plus they were dated last year. Didn't notice when I handed it in that they had to be dated within last 4 weeks. They added this requirement in later on. But got a call from them 2 weeks ago and he said everything was in order.... Also someone said a few posts back that you could use the offers you can get from the bank's websites.

Ray Rays · 28-03-2018 9:44pm

Peanut99 wrote: »

Has anybody here had their application approved yet?

Or does anyone know of anyone who has actually gotten approval for the RI home loan yet?

Got word yesterday that we were approved for €279,000 just waiting for the letter now...just in the nick of time we took a gamble on a new build and paid a booking deposit signing contracts tomorrow..the relief...also Fingal County Council very helpful...best of luck to everyone waiting to hear back!!!

Ray Rays · 28-03-2018 9:48pm

robbo25 wrote: »

Could you apply to them and use them as insufficient offers? My 2 offers would not get us a one bed apartment in our area. Plus they were dated last year. Didn't notice when I handed it in that they had to be dated within last 4 weeks. They added this requirement in later on. But got a call from them 2 weeks ago and he said everything was in order.... Also someone said a few posts back that you could use the offers you can get from the bank's websites.

Try ringing BOI tell them your looking for approval for property value of €320,000, ask them to send out letter, get the advisors name and keep calling them until they send it that’s what I did...also try Pepper Money and ask for the same amount you’ll have to provide pay slips etc but should work

robbo25 · 28-03-2018 10:00pm

Ray Rays wrote: »

Got word yesterday that we were approved for €279,000 just waiting for the letter now...just in the nick of time we took a gamble on a new build and paid a booking deposit signing contracts tomorrow..the relief...also Fingal County Council very helpful...best of luck to everyone waiting to hear back!!!

Ah brilliant. Can I ask did they phone or email to let you know? And how long did it take?

Peanut99 · 28-03-2018 10:04pm

Ray Rays wrote: »

Got word yesterday that we were approved for €279,000 just waiting for the letter now...just in the nick of time we took a gamble on a new build and paid a booking deposit signing contracts tomorrow..the relief...also Fingal County Council very helpful...best of luck to everyone waiting to hear back!!!

Great news, congrats! Do you mind if I ask how long it took from when you submitted your application to hearing you were approved?

Government Funds Local Authority Housing Scheme

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