Rebuilding Ireland Mortgage

Ryan

Registered User
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216
Any opinions on this for first time buyers? They will lend me quite substantially more than high street banks but it is quite a long fixed rate period.
 
Hi, just my thoughts.

When this first launched, the rates were excellent compared to what was available in the market. Since, the rates have increased while the wider market has got more competitive.

It's still a good rate giving you certainty for the entire term of the mortgage.
But, it's mandatory to take their mortgage protection insurance. I can't remember the costs, but it's higher than a normal life policy.
And, if you do want to repay the mortgage early (quite likely your circumstances will change over 24 years), a break fee may apply. It's not entirely transparent to me how the break fee is calculated.
 
I have been advised by some providers that I may not be eligible for mortgage protection insurance due to a medical condition I have so I might need to look into that one.
if You were to trade up whch is quite likely, would that be classed as a break or could you carry the mortgage with you?
 
I have been advised by some providers that I may not be eligible for mortgage protection insurance due to a medical condition I have so I might need to look into that one
In this case, the rebuilding Ireland scheme works in your favour. The reason it's normally more expensive is everyone pays the same regardless of age or medical history.

You were to trade up whch is quite likely, would that be classed as a break or could you carry the mortgage with you?
I don't think you'd actually be eligible for the scheme after trading up, as it's only for 1st time buyers. So a break fee should apply.

The reason I said it's not transparent is because it's based on the cost of funds to the council. Which is determined by the state. With banks it's based in market rates which are easier to get your hands on.
I'd need to spend a bit of time looking into it to understand it better.
 
By the way, have you applied for the scheme? I know the last time I looked at it, there were no funds available to meet demand, but that was a while ago.
 
No haven’t applied, just looking at options or even if it’s a financial reality that I can buy
 
They had no funds available too meet demand.the uptake must of being high ???
If I was a betting man, I'd bet either the uptake was high, or the funds available were low...

Had a quick look, and lots more money has been sanctioned since I had looked at it. Drawdowns this year are way down, so plenty of funding available.
 
Yeah from I what I recall. I think in the end I was offered slightly less than I was expecting but it wasn't a huge difference.
Hi, just want to ask, the rebuild ireland loan, applicans have to be refused 2 time by other lenders is it?
 
Yes that is correct.

You will need a letter from two other lenders saying you have been refused a loan at the same level as the one you would receive from Rebuilding Ireland. This means that the banks might have been willing to lend you a lower amount.

There is a good FAQ page on the loan scheme on rebuildingirelandhomeloan.ie and there is a helpline number listed on the same page so you can ring this with more specific questions
 
Hi, just want to ask, the rebuild ireland loan, applicans have to be refused 2 time by other lenders is it?

Yes. For me, it was just a case of getting a statement from two banks of what I would qualify for in terms of a mortgage. It's not a refusal as such but you're showing that the banks would give you less than the council. I used the AIB online one for one and then KBC was a bit fiddlier. Had to submit documents.
 
Yes. For me, it was just a case of getting a statement from two banks of what I would qualify for in terms of a mortgage. It's not a refusal as such but you're showing that the banks would give you less than the council. I used the AIB online one for one and then KBC was a bit fiddlier. Had to submit documents.
Exactly. The banks are used to this and will oblige readily enough. Daughter got hers sorted out just before the pandemic hit last year.
Excellent product if you're in the situation where the normal income multiples won't work for you.
 
My RI application to Dublin City Council was turned down a fortnight ago. The reason given for the application being declined by the Underwriter was "repayment capacity not demonstrated". To be honest I was quite surprised as I put in a figure consistent (actually 1% lower) with the online calculator. I work in a good long term permanent position, albeit part time. At the least I would have thought a lower amount would be approved if the issue was that the amount I requested was above their risk threshold. I am 42 years old, and it was a single RI application. My RI application included a letter (dated in Nov) from AIB approving in principle a mortgage for an amount circa 22% lower, over 25 years.

I am at a loss how to go back to DCC to query the decision. The refusal letter states the underwriter's decision is final and my current application has been cancelled. I have submitted to other local authorities and fear all these applications will be similarly turned down, as the same Underwriter applies.

Conscious of not high-jacking this thread. Could experienced folks on here advise whether I should post a new thread giving more background?
 
What evidence did you include to demonstrate repayment capacity?

The usual docs required: salary cert, P60/Employment Detail Summary, 4 recent payslips, CA/SA/CC statements last 12 months, rent payments. Is this what you mean?
 
Did you factor in the MPI that you'll have to pay? The calculator on their site is exclusive of that. I'm paying almost 100 a month for the MPI so I'm not sure but maybe they are looking to see you could comfortably repay the mortgage and MPI together. that whatever you're saving each month would cover that. It's always worth going back to them to enquire.
 
Did you factor in the MPI that you'll have to pay? The calculator on their site is exclusive of that. I'm paying almost 100 a month for the MPI so I'm not sure but maybe they are looking to see you could comfortably repay the mortgage and MPI together. that whatever you're saving each month would cover that. It's always worth going back to them to enquire.
Thanks @EvenStevens. I'd be quite interested to know how to estimate the MPI - I asked DCC several months before my application and they were vague. I seem to recall a ballpark of about 10% of the monthly payment would comprise MPI. Does this sound about right?

I didn't factor MPI into the figure I requested. My assumption was I should use the online calculator as a ballpark, and that the underwriter would advise an amount if lower. Perhaps I'm being naive but it seems a little unlikely to me that the MPI element alone would cause my application to be turned down. Regardless it does seem wise to factor in properly so thanks for this suggestion. Could you advise any online home loan calculators where MPI is included?

I do plan to go back to DCC to enquire, but I wanted to inform myself beforehand - hence posting in this thread.

I haven't posted on askaboutmoney.com before this thread. I see "hijacking" threads is discouraged. Would it be fairer/normal practice for me to start a new thread, giving a summary of my finances and the key details in my RI application?
 
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