New Rebuilding Ireland Home Loan

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:

  1. Have your wages mandated into your bank account or at least lodge their salary cheque every week.
  2. Demonstrate you a credible and consistent savings record.
  3. 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.
  4. Other borrowings will significantly reduce their House Purchase Loan borrowing capacity so no other borrowings at this time is their best case.
  5. 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:

  1. 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.
  2. Bad credit history – the ICB report has been revealed a previous borrowing which was unpaid or in arrears.
  3. Unsatisfactory savings or rent record.
  4. Unverified income – lodgement which cannot be explained or are out of sequence with salary certified documentation.
  5. Insufficient employment income to borrow at the level required to secure purchase