council in home loans crisis..

Cuts cuts cuts.

Thanks for posting Superfan.

You may put me in the errrr steady job bracket to assist weighing up where this problem has now reached.

We all know a big problem is peoples financial situations were different at the time they bought to what they are now. Thanks to the drop in income (pay cuts/new charges/levies etc etc etc) disproportionally placed on the lower paid (the exact people who these schemes were targeted at) what was affordable is now unaffordable. I had planned to buy out, it was do-able, but with more charges/cuts on the way that is plain impossible. I wrote to the council recently and the response erred towards going 100%. So there you have it. Im left with zero choice but to stand crippled and allow the council to raise my SOS rent 4.5 percent each year.

As far as I can see apart from the interest only square plug round hole solution, no other changes have been made yet, ... no thinking outside the pox (sic) and though changes may be there on paper, lets face it, tortoises move faster.

For me, the scheme has failed, not through its own fault nor my fault, the "throwing" will be growing.
 
... as far as i can see from reading this forum, many people still do not differentiate between affordable houses and houses bought under the shared ownership, which is crucial here .... under the shared ownership you are required to pay the mortgane and rent (rent increases every year by 4.5 %, this is killing people, in my case it is 400 euro mortgage and 650 euro rent per month, together 1050 euro per month for a small 2 bed house, i own 40% and council owns 60% of that house, the house was bought from th eopen market - this was not affordabe or social house).... and the worst is that there is no vision to move to 100 % ownership as there is no bank willing to finance this particular house (i.e. remortgage own part from the council and pay out the councils part) due to decrease in the price of the house (i.e. the initial price of the house was 200k now only 100k, while council dose not want to take the lose and still looking for the initial price of 200k), ... one of the solutions would be to move to full mortgage with council to avoid paying rent - but council does not allow doing that, instead constantly increases the rent by 4.5 % each year...., if they do not chenge something with this, the "throwing" will be growing.....definately
 
Brooklyn said:
They allowed me to do it.
Click to expand...

..because you are in Dublin, other counties, for instance Cork County Council does not allow... .and this is not only in my case, in general, Cork County Council does not allow switching to full mortgage with them..., the only option they propose is to go to private bank and remortgage but this has no chance to work as explained in my post above (i.e. council looks for the initial price of the property...).
 
The whole point is that the council, through their inaction and inflexibility are the ones compounding the problem and actually encouraging defaults and eventual losses to the taxpayer.

The (legal?) long-term binding rental contracts (25-30 years) seem to be the main problem along with the fact we are liable for full purchase price even though it's supposed to be shared ownership.

I wish they would work with us on a case to case basis to find solutions for those who wish to move on. That won’t happen and they will only act after the damage has been done and no one in authority will be held accountable.

I’m afraid that the blame and onus will lay fully with “borrowers/ renters” giving most no option but to declare bankruptcy in order to move on.
 
I have contacted Cork County Council (and fianally ombudsman office) and they confirmed that they work on new (changed) legislation allowing people to switch to full mortgage with council, they confirmed this to me and ombudsman officer, they also said that this is rather a long process and will take until the end of this year...., .... and why Dublin Council allows transfering to full mortgage and Cork Council does not !!!
 
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