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A NEW, GOVERNMENT-backed mortgage scheme for first-time buyers has been announced by Housing Minister Eoghan Murphy.
Aimed at prospective homeowners who don’t qualify for social housing, the mortgages available can be used to buy a house valued at up to:
The mortgages, which will be granted through local authorities, will be available to individual applicants whose annual gross income does not exceed €50,000 and to joint applicants who earn €75,000.
Speaking on RTÉ’s Morning Ireland, Murphy said that the government was determined to increase the stock of social housing, but added:
“It’s important to recognise that there will be people who won’t be eligible for social housing, but still can’t afford to buy a home at the moment.”
This product, he said, was aimed at those people and “doesn’t exist currently in the market”.
Fixed rate
The new Rebuilding Ireland Home Loan can be used both for new and second-hand properties, or to build your own home.
A person or couple can borrow up to 90% of the market value of the property.
They can choose a fixed rate of 2% to 2.25% interest for 25 to 30 years.
Murphy said in a statement that this would mean “they will have absolute certainty of their repayments over the lifetime of the loan”.
What this means essentially is that a person or couple can purchase a home, while ensuring that they can still keep their monthly repayments to one third of their net disposable income – with no risk of their mortgage rate rising and so no threat to their ability to afford repayments, giving them certainty and security.
Murphy gave two examples of how the scheme would work:
So, for example, a person earning €40,000 a year and living in Mayo could afford to buy a house worth €224,920, provided they had the deposit of €22,400. They could then borrow €198,000 from their local authority and their monthly repayments would be in the region of €858 a month, or 33% of their Net Disposable Income.
As a second example, a couple earning €75,000 and living in Dublin could afford to buy a house worth €320,000, provided they had €32,000 as a deposit between them. They could then borrow €288,000 from their local authority and their monthly repayments would be €1,221, or 24% of their Net Disposable Income.
€200 million is being made available for the first tranche of mortgages, which, it’s hoped, will provide about 1,000 loans, Murphy said.
The scheme will be available from councils around the country from Thursday 1 February.
Refusals
To qualify for the scheme, would-be buyers need to have had knock-backs or offers of insufficient funding from two different lenders.
Investec analyst Owen Callan wrote that the mortgages were effectively targeted at “sub-prime mortgage borrowers”, but the plan would be an “additional tool in rounding out access to mortgage financing for the overall market”.
“(The scheme) seems designed to not compete directly with the banks, given the need for refusals of mortgage financing in order to qualify for the scheme,” he said.
However, we would stress again that a lack of supply of new housing stock remains the biggest impediment for buyers seeking to purchase a home, not access to or the cost of mortgage financing.
The website for the scheme is now online.
- with reporting by Peter Bodkin
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Might have been a good idea to check all that out before offering it to our kids luckily my wife was against it
Awh great, i knew there was a reason why i shouldn’t of got this.
At the time in Poland the Polish Health Minister would not grant permission for use because as a Doctor she said it had not been fully tested. Looks like she was right in some cases.
What about pregnant women being given this vaccine – wonder if they really know its effects on the unborn child.
I go it, as did my partner when the twins were getting their 6 months vaccinations. We both felt so desperate after it that we decided we weren’t going to give it to them at all…Boy am I happy now :)
Great now the idiots that are against vaccines will think they’re right all along just because of this little issue (in the big picture of things)
Of course many of these fools will claim vaccines cause autism but then they will convinently forget that the research they refer was proven to be false and misleading.
If these people think vaccines are so evil then they should take their chances with polio etc and see how their lives are
Let people look up “narcolepsy”, then “swine flu”, and decide which is worse. I’m still glad I got the jab last yea…zzzzzzzz.
IT AINT JUST A LITTLE ISSUE !!!!!!!!!!!!!!!!!!!!!!! >:(
I was always against this flu jab. How many people went like lemmings to their doctors with their kids without checking the back round. Its actually banned in a number of european countries! I’m sorry but I just don’t trust GPs to give me safe medicines. Drug company’s force pharmacies and doctors to administer certain drugs by withholding best selling painkillers and other medicines. A pharmacist told me this on the record.
I’m 18 and got the swine flu jab in school earlier this year. Less than 5 hours later, I was completely paralysed on my left hand side, right from my face, my arm and hand and leg, with severe chest pains. I was rushed to hospital to get a morphine injection and thankfully I was ok afterwards. I wouldn’t recommend the swine flu jab to anyone and no one else in my family got it. My family doctor seemed very against it after he found out what happened, but it was brushed aside after.
Wasn’t there a story about this from last year ? The risks were widely known and the links proven in other European countries already so why has it taken the HSE so long to respond and only recently remove it after tens of thousands of people, including children, have already had the vaccine here ?
Shockingly inept but that’s nothing new for the HSE.
I never got the jab and worked through two winters in a&e dept’s , the first year particularly bad with every 3rd patient suspected swine flu. Im def pro vaccines but for anyone who is young fit and healthy surely the jab is totally unnecessary .
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