Rebuilding Ireland home loan

Tumbleweed2 · 13-02-2020 12:07pm

clearview99 wrote: »

Thanks for the response - I'm looking at a house that's a little over the 250k limit - I can make the difference with savings (just about) but unsure if the council will approve it as it's over the rebuilding Ireland limit. Gorey prices are far higher than other parts of the county - it has commuter town status so why wouldn't they! This house ticks all the boxes for me and tbh if the bank had of stretched on the mortgage I wouldn't need to go down the RI route. House prices in Arklow are in line if not below Gorey prices yet it benefits from a 320k limit!

Yeah it's a little unfair but unfortunately it's set in stone.
If you are buying new build you can have a chat with the developer. I know someone that got approved in Wicklow for a house costing €327k and they paid the €7k under the table.

Jafin · 13-02-2020 12:49pm

Submitted my application yesterday and included a letter from AIB with approval in principle that I got by applying online, that was fine. Also included the output sheet from Permanent TSB's online calculator and got an email this morning saying that they can't accept the calculator output sheet. I've looked on the RIHL website and it says that what I gave them is perfectly fine. Is there any way I can go about telling them that it should be fine according to the official guidelines, or asking if they can double check, and that multiple other councils have accepted this as evidence without me sounding like a complete so-and-so?

My salary cert in my application will expire in 10 days and I work Monday to Friday 9:30 to 6pm in a job where it can be difficult for me to get someone to cover me if I need to do something during that time, so I don't even know if I can get an appointment with PTSB in time to get a proper letter of refusal before the salary cert expires.

optogirl · 13-02-2020 2:21pm

Jafin wrote: »

Submitted my application yesterday and included a letter from AIB with approval in principle that I got by applying online, that was fine. Also included the output sheet from Permanent TSB's online calculator and got an email this morning saying that they can't accept the calculator output sheet. I've looked on the RIHL website and it says that what I gave them is perfectly fine. Is there any way I can go about telling them that it should be fine according to the official guidelines, or asking if they can double check, and that multiple other councils have accepted this as evidence without me sounding like a complete so-and-so?

My salary cert in my application will expire in 10 days and I work Monday to Friday 9:30 to 6pm in a job where it can be difficult for me to get someone to cover me if I need to do something during that time, so I don't even know if I can get an appointment with PTSB in time to get a proper letter of refusal before the salary cert expires.

This really annoys me - they have it on their own FAQ section as acceptable. Why are they making it as difficult as possible. It's not as if different banks have wildly different lending criteria.

Tumbleweed2 · 13-02-2020 2:46pm

Jafin wrote: »

Submitted my application yesterday and included a letter from AIB with approval in principle that I got by applying online, that was fine. Also included the output sheet from Permanent TSB's online calculator and got an email this morning saying that they can't accept the calculator output sheet. I've looked on the RIHL website and it says that what I gave them is perfectly fine. Is there any way I can go about telling them that it should be fine according to the official guidelines, or asking if they can double check, and that multiple other councils have accepted this as evidence without me sounding like a complete so-and-so?

My salary cert in my application will expire in 10 days and I work Monday to Friday 9:30 to 6pm in a job where it can be difficult for me to get someone to cover me if I need to do something during that time, so I don't even know if I can get an appointment with PTSB in time to get a proper letter of refusal before the salary cert expires.

I literally rang Ulster bank direct mortgages told them want I wanted, they said no, I asked for a decline letter to be issued with me in confirming same and they emailed it to me same day. If you dont want confrontation and want to seem accommodating give them a go.

Jafin · 13-02-2020 3:48pm

Tumbleweed2 wrote: »

I literally rang Ulster bank direct mortgages told them want I wanted, they said no, I asked for a decline letter to be issued with me in confirming same and they emailed it to me same day. If you dont want confrontation and want to seem accommodating give them a go.

Oh it's not even that I'm afraid there will be confrontation or anything, I just don't want myself to come across as a d**k. Regardless I've emailed them back asking politely if they wouldn't mind double checking because the website for RIHL says that what I gave them is acceptable evidence. If not I'll just have to try my best to get something else in time. Thanks for the tip on Ulster Bank, I'll keep them in mind should I need to go that route.

Jafin · 14-02-2020 11:21am

Tumbleweed2 wrote: »

I literally rang Ulster bank direct mortgages told them want I wanted, they said no, I asked for a decline letter to be issued with me in confirming same and they emailed it to me same day. If you dont want confrontation and want to seem accommodating give them a go.

Sorry to quote you again. I was just wondering do you have a number for ringing Ulster Bank about it? I looked all over the website and all I can find is a button to request a call back, no direct number that I can actually call myself. Or is it your local branch that you phoned? Thanks

Edit: Nevermind, I eventually found the phone number. Even better is that they're open until 8pm tonight, so I can ring them after I get home from work.

Whodanoob · 14-02-2020 2:35pm

Do you think RI might be scrapped since Fianna Fail are quite critical of it? I think there would be uproar if that happened.

rqc1i3ovl5uxt6 · 14-02-2020 9:25pm

Submitted my application this afternoon to my local authority. Fingers crossed! No questions were asked, my envelope was just stamped! Maybe it was an opportunity to ask questions, but i was just happy to get it in! Needed to apply for a mortgage with KBC in order to get an insufficient offer letter so that took some time. Bank of Ireland were more straight forward, i was emailed an insufficient offer letter a few days after a meeting with a mortgage advisor. Anyone doing / done a 175sqm self build?

xxsammyxx085 · 15-02-2020 12:01pm

Hi guys, wondering if anyone here might be able to clarify something for me.... we have our mortgage approved. We were looking at a self build as house prices here for what we need are extortionate for really old, cold houses.... we were wondering if the council will let us build.... but only get it to a builders finish on the money we have... or will they make us have everything kitted out in the mortgage amount?? Any advice appreciated

BKWDR · 15-02-2020 12:02pm

xxsammyxx085 wrote: »

Hi guys, wondering if anyone here might be able to clarify something for me.... we have our mortgage approved. We were looking at a self build as house prices here for what we need are extortionate for really old, cold houses.... we were wondering if the council will let us build.... but only get it to a builders finish on the money we have... or will they make us have everything kitted out in the mortgage amount?? Any advice appreciated

Define 'kitted out'

xxsammyxx085 · 15-02-2020 12:05pm

BKWDR wrote: »

Define 'kitted out'

Emm.... do we need floors tiled, wooden floors skirting boards.... I know we need a kitchen and bathroom.... would we have to have the an suite in if we have a main bathroom done??

BKWDR · 15-02-2020 12:13pm

xxsammyxx085 wrote: »

Emm.... do we need floors tiled, wooden floors skirting boards.... I know we need a kitchen and bathroom.... would we have to have the an suite in if we have a main bathroom done??

AFAIK they're more concerned with the build aspect and higher level stuff such as waste water drainage windows etc. It'll all have to be signed off by qualified professional.

xxsammyxx085 · 15-02-2020 3:23pm

BKWDR wrote: »

AFAIK they're more concerned with the build aspect and higher level stuff such as waste water drainage windows etc. It'll all have to be signed off by qualified professional.

Super thanks a mill

KH1591 · 15-02-2020 4:49pm

Quick question for anyone who has applied and drawn down their mortgage with this scheme

Do you have to have the solicitor fees and stamp duty before they process the application? Our plan is to put our application forward with our 10% deposit.. once approved we will move home and save the solicitor fees / stamp duty but wondered if they would approve us without having the full solicitor fees saved?
Just wondered what others peoples experience with this part of the process was
Thanks

Tumbleweed2 · 17-02-2020 12:13pm

KH1591 wrote: »

Quick question for anyone who has applied and drawn down their mortgage with this scheme

Do you have to have the solicitor fees and stamp duty before they process the application? Our plan is to put our application forward with our 10% deposit.. once approved we will move home and save the solicitor fees / stamp duty but wondered if they would approve us without having the full solicitor fees saved?
Just wondered what others peoples experience with this part of the process was
Thanks

Yeah I was approved with just my deposit, I was using the c. 2 months to continue to save for other expenses and that was fine. Be wary, some councils outsource their legal work and you'll have to foot the bill. I paid Wexfords legal fees. There is also more than just the legal fees, there is land registry cost and deed related costs.

KH1591 · 17-02-2020 8:49pm

Tumbleweed2 wrote: »

Yeah I was approved with just my deposit, I was using the c. 2 months to continue to save for other expenses and that was fine. Be wary, some councils outsource their legal work and you'll have to foot the bill. I paid Wexfords legal fees. There is also more than just the legal fees, there is land registry cost and deed related costs.

That's great thank you! We have sourced our own solicitor and they are covering all fees including stamp duty for around 5k. Glad to hear you got approved with just the deposit though. Did you get your own solicitor or did you have to use someone from them?

Tumbleweed2 · 18-02-2020 9:33am

KH1591 wrote: »

That's great thank you! We have sourced our own solicitor and they are covering all fees including stamp duty for around 5k. Glad to hear you got approved with just the deposit though. Did you get your own solicitor or did you have to use someone from them?

I had my own which I paid for everything incl stamp duty. Then with wexford they outsource their legal work to a private firm, so I also had to pay for that. Legal fees ended up costing me about 3k which I did not budget for at all haha!

JD3112 · 18-02-2020 7:30pm

Can you apply for the Help to Buy scheme and Rebuilding Ireland Home Loan before you have a set of fully costed house plans? I have planning permission on the site but I want to resubmit plans (as they were over ambitious in terms of my financial ability).

If RIHL & HTB weren’t available I’d just go with the 3.5X that the banks will offer but I want to get the RIHL loan.

I don’t want to waste more time designing plans and then having to redesign them again if RIHL & HTB values change

So essentially how do I proceed to design a house that will cost too much for the banks to give me a mortgage but will be small enough for RIHL?
If I could apply for RIHL first, then I’d know how much I could borrow which would dictate the house that I can design?

scheister · 19-02-2020 3:52pm

I just spoke with Kildare county council re RBI. They are currently dealing with applications made last July.
I was not planning to apply until the summer but was advised to apply now and they will request updated information when they get around to me

With regards to bonus they consider other income to the the lower of bonus or 10% of gross pay

Tasfasdf · 19-02-2020 4:06pm

I am wondering is the RIHL more expensive than vs a bank even with a lower interest with the MPI over the course of 30 years for example.

AlmightyCushion · 19-02-2020 4:28pm

Tasfasdf wrote: »

I am wondering is the RIHL more expensive than vs a bank even with a lower interest with the MPI over the course of 30 years for example.

It's hard to know what the total cost of a bank mortgage will be over 30 years as no one offers a fixed rate for that long. I'm pretty sure someone calculated the cost of the MPI as adding an additional .55% on to the interest rate. That puts the 25 year at 3.3% and the 30 year at 3.55% which aren't great. You can get better rates that that at some banks and they will let you overpay a portion of the fixed rate as well. I think you'd be better off going with a normal bank if you can.

kotac24 · 19-02-2020 6:59pm

Just a note on the lump sum payments... as far as i understood from the meeting last week with fingal, for people that went in with the old rates, there are no penalties calculated as long as the interest rate at the time when you want to do bulk payment is higher than it was when the contracts were initially signed (which now is the case). Also a good information to know...

Tumbleweed2 · 20-02-2020 10:46am

kotac24 wrote: »

Just a note on the lump sum payments... as far as i understood from the meeting last week with fingal, for people that went in with the old rates, there are no penalties calculated as long as the interest rate at the time when you want to do bulk payment is higher than it was when the contracts were initially signed (which now is the case). Also a good information to know...

A lot of the older approved loans are also on variable rate which would also mean no penalties for additional payments. They no longer offer variable anymore.

Scr88 · 23-02-2020 1:43pm

Just looking for some advice from people who have drawn down a mortgage on a new build. I have just been approved and wondering what next step is. The house is due to be finished in August. Can I start the ball rolling or do I need house to be complete. Thanks in advance

Lwoods90 · 24-02-2020 10:36pm

Can someone help me in regards to our application. For example we are offered €200,000

1) Do we have €200,000 plus our deposit?

2) Will we loose a % for each dependant

A certain high street bank have docked us €100,000 for 2 dependants.

Tumbleweed2 · 25-02-2020 1:30pm

Lwoods90 wrote: »

Can someone help me in regards to our application. For example we are offered €200,000

1) Do we have €200,000 plus our deposit?

2) Will we loose a % for each dependant

A certain high street bank have docked us €100,000 for 2 dependants.

If I am reading this right, it means you have €200,000 mortgage for a property worth c. €222,000. The balance being made up buy your deposit. Max loan to value 90% - so for example if you found a house for €200,000, that mortgage amount would be reduced to €180,000. Again your deposit making up the balance.

In terms, of dependants. This wasn't applicable for me as I do not have any, but from a professional basis (without going into too much detail about myself) the amount "Pillar banks" knock off per dependant is ludicrous. For a family with 2 kids, you are looking at losing minimum €1,000 p/m from you Net disposable income (NDI). Aside from the LTV rule of 3.5 times your income, the next 2 things they look at are your NDI and regular savings amounts to see how that measures up to a proposed repayment which is also stressed tested to allow for a potential rise in rates by X %. A majority of people can struggle with this, before even deducting dependants.

Example of the NDI test, I can give.
John (earning €2k p/m) and Jane (earning €2.2k) and their 2 kids. No loans.
Total earnings: €4.2k p/m - €2200* (considered living expense of married couple) - 1000 ( 500* x2 for deps) = 1000 euro left over for a stressed repayment test.

Take a rounded of loan repayment of €250 p/m
NDI €1000.00 - €250.00 = €750.00
Based on a quick calculator from a pillar bank, €750 p/m as a stressed repayment wouldn't even break €190k

So a couple earning c. €60k - would qualify for €190,000 provided they had regular savings/evidence of rent payments that would stack up to this.

If rent and saving did entitle you to €190k and lets say based on them you are eligble for €175k. That is the amount you'd be offered.

Essentially its the lesser of the LTV, NDI and Rep cap (saving and rent) test.

* Also not the figures in the equation are rough, I've seen married living expenses range from €2000 to €2500 and dependants range from €500 - €750 per dependant. I've also seen €1000 for first dependant and €500 for every dependant thereafter

I am led to believe that the CoCo isn't as harsh on dependants but this may vary council to council. I am not 100% sure.

Sorry if this is information overload and the rant but the above is something that has bothered me for an incredibly long time.

kbman · 25-02-2020 9:44pm

Lwoods90 wrote: »

Can someone help me in regards to our application. For example we are offered €200,000

1) Do we have €200,000 plus our deposit?

2) Will we loose a % for each dependant

A certain high street bank have docked us €100,000 for 2 dependants.

On the dependents, we have one child of 2 years, 1 at time of applying. The amount we got offered by 2 County Councils was 2 euros less than the amount the calculator gave which doesn't ask if you have children.
That would indicate to me that it's not taken into consideration. I applied to Dun Laoghaire cc and wicklow cc.

I share tumbleweed opinion,.
One bank told me that they deducted 250 per child, and determined you would need x to live on which if I remember their calculations worked out at 1.5 times salary which wouldnt get you far.

Lwoods90 · 26-02-2020 2:33pm

Hi, one final question,

If our maximum loan amount is €216,000. How much deposit would we need saved ?

macplaxton · 26-02-2020 2:37pm

For a 90% mortgage, €24k (216/9 x 10)

(in the case of Rebuilding Ireland, 3% (7,200) need to be regular savings, not gifted)

Hudur · 26-02-2020 11:59pm

Declined from both counties. I guess it was too much to expect county councils to understand ESPPs (https://www.revenue.ie/en/additional-incomes/employment-related-shares/employee-share-purchase-plans.aspx ) even after I provided them all statements.

I had 10% of my gross salary going to company ESPP directly from my salary for 2+ years and it wasn't counted as regular savings. Also funds that are in ESPP aren't even counted as savings, they just ignored them.

Waited for 2-3 months, appeals going on now and will wait more months. I did now withdraw all funds to my bank's saving account so got there now 10% deposit +4k more. I guess still 50-50 if this works.

Rebuilding Ireland home loan

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