Affordable housing unfairness

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pinkie123

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Did anyone see 'I'm an adult get me outta here' on RTE2 last night?
I am disgusted! A nurse who earns €27k or who was able to qualify for a 300k+ mortgage was still allowed to qualify for affordable housing!
How can this happen?
I earn nearly twice as much and I wouldn't qualify for a €300k mortgage. Nor do I qualify for affordable housing.
I struggled 2 years ago to get a mortgage for a 1bed apt in belfry citywest [which I love by the way]
And she comes along gets a 800sq ft 2 bed in belfry hall in citywest for €150k??? 50k less than I paid for my 1 bed!
How is this fair? This country is a disgrace.
 
purely her income which is below about €34k and she will get affordable status.

The bank sees her salary increments going forward and lends on what she will make in a few years. She is also civil service and you are not.

My advice is buy before you KNOW your salary will rise above the level at which you qualify.
 
I struggled 2 years ago to get a mortgage for a 1bed apt in belfry citywest [which I love by the way]
And she comes along gets a 800sq ft 2 bed in belfry hall in citywest for €150k??? 50k less than I paid for my 1 bed!
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You can sell up anytime and take the profit, she cannot afaik - anyone know the details about the various clawbacks in place?
As for the bank offering 280K - i too was astounded - leaving aside the job stability and future increments - that would have been irresponsible imho.
 
Glenbhoy said:
You can sell up anytime and take the profit, she cannot afaik - anyone know the details about the various clawbacks in place?
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I forgot about booking the profit .
As for the bank offering 280K - i too was astounded - leaving aside the job stability and future increments - that would have been irresponsible imho.
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I have heard of some astounding multiples being offered to nurses or civil servants generally . One nurse I know near the top of the scale was offered 5x or 5.5x gross last year on her own . The mortgage would have been paid off when she was 61 :eek:
 
2Pack said:
One nurse I know near the top of the scale was offered 5x or 5.5x gross last year on her own . The mortgage would have been paid off when she was 61 :eek:
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6X gross salary for accountants
 
Yeah but my point is:
How can you qualify for such a big mortgage and on the other hand qualify for affordable housing?
Surely affordable housing is for people who cannot get approved for a mortgage big enough to buy a place.
I have no problem with that at all.
 
but the mortgage she GOT is around 5x Gross and she is on an incremental scale which is published so they know what salary she will be on in 3 or 5 years do they not ????
 
6X gross salary for accountants
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But she was offered 280K on a salary of 27K - 10 times, and in fairness, nurses salaries have a relatively low top end (considering how high most state job salaries can go).
 
pinkie123 said:
Did anyone see 'I'm an adult get me outta here' on RTE2 last night?
I am disgusted! A nurse who earns €27k or who was able to qualify for a 300k+ mortgage was still allowed to qualify for affordable housing!
How can this happen?
I earn nearly twice as much and I wouldn't qualify for a €300k mortgage. Nor do I qualify for affordable housing.
I struggled 2 years ago to get a mortgage for a 1bed apt in belfry citywest [which I love by the way]
And she comes along gets a 800sq ft 2 bed in belfry hall in citywest for €150k??? 50k less than I paid for my 1 bed!
How is this fair? This country is a disgrace.
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and that money was on a 100% mortgage !!!!

the parents seem to have a quite a bit in the bank (heres 40k have fun) I wounder if they went garantor on the loan ?
 
I was just thinking that that maybe her parents went guarantor for her.
Cos I know my friend earns only about 30k but she got a mortgage of just over 300k due to the fact that her father co-signed with her.

As for the clawback in affordable housing it depends on the percentage reduction you received when purchasing the property.

The example property path use is say you buy for 100k but value of prop is 200k you have therefore received a 50% reduction so if you sell your property for 300k they have to receive 150k and this lasts for the first 10 years of your mortgage then drops by 10% for every year up to 20 years
 
Just because the bank were prepared to offer her a crazy multiple of 10 times salary does not mean she would have been well advised to do so. She would be extremely stretched to make the repayments on a mortgage that size. If her salary meets the criteria for the affordable housing I don't see why she should be obliged to commit financial suicide. On 27K her net salary is probably about 1,950 a month, the repayments on 280K at 3.5% over 30 years would be about 1,250.
 
How would you feel if you were one of the people who paid full whack & had an affordable purchaser moving in next door?
 
I know it's still a high multiple, but I thought she was offered 250K mortgage and her folks were inputting 30K so her budget was 280K. her folks then upped the amount they were pumping in so her budget rose to over 300K but the mortgage approval was still 250K.
still over 8 times her gross!
 
How would you feel if you were one of the people who paid full whack & had an affordable purchaser moving in next door?
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I honestly couldn't care less. All I would be interested in is myself. As long as it doesn't directly devalue my property, what does it matter?
 
TwoWheels said:
How would you feel if you were one of the people who paid full whack & had an affordable purchaser moving in next door?
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That goes to the deeper issue of whether you agree with the whole concept of the affordable housing or not. In the case outlined the nurse clearly meets the income requirement of the scheme and I feel that what some bank is prepared to offer her on a huge multiple of her low salary is irrelevant. Affordable is not what you can get from the bank it is what you can comfortably repay.
 
Dillions, I agree with you. I thought she was offered 250k and the parents initially offered her a loan of 30k. As this still wasn't enough to get her a place in Dublin they up'ed it to the stamp duty level - 317.5k.
 
MB05 said:
Dillions, I agree with you. I thought she was offered 250k and the parents initially offered her a loan of 30k.
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Is this not defeating the purpose of the word "Adult" in the title of the programme - seeing as now two out of three 'candidates' on the show have been in a "parental gift" situation..?
 
soma said:
Is this not defeating the purpose of the word "Adult" in the title of the programme - seeing as now two out of three 'candidates' on the show have been in a "parental gift" situation..?
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hee hee. Otherwise there'd be no programme or it'd be called: "I'm an Adult and I'm Stuck Living With my Parents till I find a Life Partner - my Mother is Calling Round All Her Friends with Sons My Age."
 
How would you feel if you were one of the people who paid full whack & had an affordable purchaser moving in next door?
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As stated earlier you can sell whenever you want and book the profit - an affordable buyer cannot.
 
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