New Rebuilding Ireland Home Loan
On the 22nd January 2018 Minister Eoghan Murphy TD launched the Rebuilding Ireland Home Loan scheme.
The Rebuilding Ireland Home Loan is a new Government backed mortgage for first time buyers.
It is available nationwide from all local authorities from 1st February 2018.
A Rebuilding Ireland Home Loan is a new Government backed mortgage for first time buyers.
It can be used to purchase a new or second-hand property or for self-build As a first time buyer you can apply for a Rebuilding Ireland Home Loan to purchase a new or second-hand property, or to build your own home.
The loan is a normal Capital and Interest-bearing mortgage which is repaid by direct debit on a monthly basis.
You can borrow up to 90% of the market value of the property.
Maximum market values of the property that can be purchased or self-built are: • €320,000 in the counties Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow, and • €250,000 in the rest of the country.
A Rebuilding Ireland Home Loan offers three rate products:
• 2% fixed for up to 25 years (APR 2.02%)
• 2.25% fixed for up to 30 years (APR 2.27%)
• 2.30% variable (subject to fluctuation) for up to 30 years (APR 2.32%)
A website has been set up which gives full background on scheme and has list of FAQ. – www.rebuildingirelandhomeloan.ie
A National Help Desk has been set up to answer queries in relation to the scheme and their contact number is 051-349720 (8.00a.m. – 5.00p.m.)
Preparing to apply for a House Purchase Loan:
Where a prospective applicant intends to fund their purchase using a House Purchase Loan your chances of success are increased if you:
- Have your wages mandated into your bank account or at least lodge their salary cheque every week.
- Demonstrate you a credible and consistent savings record.
- Demonstrated you have a good financial management by paying their credit cards on time and keeping their bank accounts clear of unpaid or returned items and overdrawn balances.
- Other borrowings will significantly reduce their House Purchase Loan borrowing capacity so no other borrowings at this time is their best case.
- Where you have had borrowings previously or now, a satisfactory credit history for the last five years is essential.
Without this, we will automatically decline the application. Without this preparation, a recommendation to decline is more likely.
Main Reasons for Decline:
To date, the most usual reasons for refusing a loan application have been:
- Net income ratios is too high – that is to say that the borrower would not be able to repay the loan each month in addition to meeting their day to day living expenses.
- Bad credit history – the ICB report has been revealed a previous borrowing which was unpaid or in arrears.
- Unsatisfactory savings or rent record.
- Unverified income – lodgement which cannot be explained or are out of sequence with salary certified documentation.
- Insufficient employment income to borrow at the level required to secure purchase