Rebuilding Ireland-Home Loan Scheme

[EvenStevens]

A general question. Just wondering if anyone here has engaged in using the scheme at all yet and how they've found it? I think I misunderstood the scheme initially but it might actually work in my favour. They ask for proof of insufficient funds from banks so I presume a statement from the bank stating what I would qualify for is essentially the same thing? I will pick up the phone and ring them but just interested if anyone has been in touch with any county councils about it.

 

[cpt_boom]

There's a good thread on boards with info on it here.

It seems you can only use the council's mortgage protection insurance and the cost is high - €133/mo. for a e288K 25yr loan. I wonder if you're paying some kind of default insurance for the council... or the scheme is just overpriced.

If we assume a policy cost of e25/mo. this would add 0.75% to the effective rate of the 25y mortgage. Still, 2.75% is a very good deal.

 

[Brendan Burgess]

Whatever happened to this scheme?

Why the Government’s affordable loan scheme was flawed from the start
Figures show rejection rates of as high as 61%

As of end-September, it had attracted almost 3,000 applications but just 1,134 of these have been recommended for approval by the Housing Agency.


For people paying hefty rents, the scheme must have looked like a godsend, with its promise of a first step on the property ladder. But with a rejection rate of some 61 per cent, it has quickly turned into a waste of time for many.
...

Applicants getting the maximum loan amount of €288,000, for example, can expect to pay as much as €133 a month for mortgage protection, or almost €1,600 a year. To put this in context, a 30-year old can get similar cover with Aviva for just €15 a month, or €180 a year.

 

[EvenStevens]

I applied for it about 3 weeks back so it'll be a while longer to hear I think.

Rejection rate is really surprising though. The criteria are pretty clear so maybe people are chancing their arm applying if they are slightly over the max salary etc ..?

I knew about the Mortgage Protection thing. I think it decreases over time the more you pay off the loan but it seems to be their way of making something out of the scheme.

 

[Neek01]

It is impossible to find similar insurance for €15 a month. The cover they offer is good. I had a sibling apply and as I have a background in finance I went through it all with them.
The scheme is actually pretty good. We discussed it with the council representative and it seems that alot of people applied as soon as it was introduced despite not being mortgage ready (savings etc) resulting in alot of rejections initially. Also, keep in mind that the people applying have often been declined outright by the banks therefore are not the best candidates.
The interest rates are great, Id love to be eligible myself!

 

[EvenStevens]

It is impossible to find similar insurance for €15 a month. The cover they offer is good. I had a sibling apply and as I have a background in finance I went through it all with them.
The scheme is actually pretty good. We discussed it with the council representative and it seems that alot of people applied as soon as it was introduced despite not being mortgage ready (savings etc) resulting in alot of rejections initially. Also, keep in mind that the people applying have often been declined outright by the banks therefore are not the best candidates.
The interest rates are great, Id love to be eligible myself!

I've been approved for it by two councils now. Just trying to find a place at the moment and yes the interest rates are great. I'll be on the fixed rate so it's really something to know it won't change for the duration