Whats the average everyone had saved when offered affordable housing?

Re: Whats the ave everyone had saved when offered a property with AH

I had about 5k saved up after 6 months. I reckon with furnishing, booking deposit and legal bills that that's the absolute minimum you shoudl have.

Pulled out at the last minute though.
 
Re: Whats the ave everyone had saved when offered a property with AH

Whilst you're busy saving it may be worth your while familiarizing yourself with the exact legal and financial details of the Affordable Housing scheme of the Council you are applying through, specifically with regards to selling, renting or remortgaging the place in the future, as it appears absolutely no one else has.
 
Re: Whats the ave everyone had saved when offered a property with AH

Also be aware that under current legislation you cannot remortgage without incurring the clawback. If buying under shared ownership you can't rent a room out, and you also can't increase your share of the house without incurring the clawback.
 
Re: Whats the ave everyone had saved when offered a property with AH

Hi Jen,

By the time you complete the purchase, I reckon you need to have the following
  • At least 3% of the purchase price - as max mortgage is 97%. You will need to pay booking deposit when you accept an offer.
  • Either enough money to furnish the property to a standard where you can let a spare room (if thats your plan), or enough money to cover the mortgage yourself for a few months.
  • Minimum 1600 for legal fees. Council have deals with solicitors for 999+vat+outlays. If you shop around you might get that cheaper.
  • Management Company fees is applicable.
Hope that helps,
eims
 
Re: Whats the ave everyone had saved when offered a property with AH

eimsRV said:
Hi Jen,

By the time you complete the purchase, I reckon you need to have the following
  • At least 3% of the purchase price - as max mortgage is 97%. You will need to pay booking deposit when you accept an offer.
  • Either enough money to furnish the property to a standard where you can let a spare room (if thats your plan), or enough money to cover the mortgage yourself for a few months.
  • Minimum 1600 for legal fees. Council have deals with solicitors for 999+vat+outlays. If you shop around you might get that cheaper.
  • Management Company fees is applicable.
Hope that helps,
eims
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Thanks -Well the max I can borrow is 190k, so if the purchase price is that I would need 5.7k, if any lower - great. Im guessing another 5k should cover legal fees and bit of furniture (I have lots already from a house I rented).
 
Re: Whats the ave everyone had saved when offered a property with AH

jenben1982 said:
Im hoping to have about 5k after 18 months of waiting are up (its all I can save until I move back home). Presuming its a new-build I'll be waiting a while to actually close the mortgage and move in with snagging etc so I will be saving a grand a month after that.

So how much did all of you have when you first got offered a place to view and actually went for the mortgage?
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I have close to 10k saved and I still don't have enough to satisfy my local council. Presumably they look at the value of the property and you must have at least 3% of the total value + legal fees etc to even qualify..
 
Re: Whats the ave everyone had saved when offered a property with AH

Generally you need to have 3% deposit of the price of the property, not the value!
There may be slight differences by council on the deposit, however the maxium the banks (EBS, BOI & IIB) will lend for AH is 97%.

EBS: "EBS HomeAccess makes it easier for those buying their first home under the affordable housing scheme as purchasers are required to have a 3% deposit only. EBS will provide the balance, offering a range of highly-competitive mortgage options both at the time of purchase and throughout the life of the borrower's mortgage".


Fingal CO CO: How much of a mortgage can I get?
95% of the price of the property up to a maximum of €185,000, subject to lending terms and conditions.
 
Re: Whats the ave everyone had saved when offered a property with AH

jenben1982 said:
Who told you you must have 3% of the TOTAL value of the property saved? Its supposed to be affordable i.e. for people who CANT save large amounts or get a large deposit up? What is the point in that, they are telling you to save for your furniture?! sounds odd!
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Sounds strange alright. I even thought the 3% deposit was a requirement of the lender, not the local authority, although I'm sure the purchaser would have to prove that they have the funds to complete the sale.
 
Re: Whats the ave everyone had saved when offered affordable housing?

Its supposed to be affordable i.e. for people who CANT save large amounts or get a large deposit up?
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The 'affordable' part is about the overall price-remember that it is 3% of a discounted purchase price, not the market price.

If you can't put together 3% before signing contracts, would you be in a position to meet mortgage repayments?

The 'afforable' part is just as much, if not more, about the ongoing cost (i.e. the mortgage) as it is about the initial deposit.
 
Re: Whats the ave everyone had saved when offered affordable housing?

DCC doesn't require you to have 3%. You only have to have €1300 for the initial deposit. If buying on the shared ownership scheme and the cost is above the maximum they will lend (€250,000) then you have to have the difference.

Of course there are so many other costs involved (management fees, floors, furniture etc) you're wise to have as much saved up as you can.
 
Re: Whats the ave everyone had saved when offered affordable housing?

I am on the list for Cork County, and have over 15k saved. The council here require you to have 3% of the price of the property and legal fees- as a minimum. So if the house Im hoping to get is 220000, then i will need a down payment of 6600, and legal fees. As i say, this is what they expect you to have as a minimum. I am on the list for about 3.5 years, still waiting.....
 
Re: Whats the ave everyone had saved when offered affordable housing?

I think all of the councils put far too much emphasis on what savings you need and not enough on how much you should be earning to actually service the loans. This puts them in the position they're in today where they have so many people applying clogging up the system who simply cannot afford the mortgages.
 
Re: Whats the ave everyone had saved when offered affordable housing?

shanegl said:
I think all of the councils put far too much emphasis on what savings you need and not enough on how much you should be earning to actually service the loans. This puts them in the position they're in today where they have so many people applying clogging up the system who simply cannot afford the mortgages.
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True... when people actually go for the mortgage, bad credit history and new loans being taken out generally stop them from getting approval. Its a pity after being 18months on the list and saving your ass off.

Suppose it opens the door to others though who are on the list...
 
Re: Whats the ave everyone had saved when offered affordable housing?

Fingal CC gave me a print out when i decided to purcahse my property saying minimum deposit 8,000. However, this depost would not have allowed me to get the mortgage within their timeframe. I do have 20k saved but didnt think i'd need every last penny for my deposit.
One point to no: Fingal CC are that slow that if you start saving EUr 700 per month as required by the time you are actually paying for the property you will have a lot saved! 18 months of this would give you EUR 12,600
 
Re: Whats the ave everyone had saved when offered affordable housing?

In that case, I might be able to afford a commercial mortgage! I had a substantial sum saved and a car loan, half paid off. Fingal said they would rather I kept the loan and the savings but I decided to clear the loan and I've almost saved that amount again now with the time I've waited.
 
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