Housing

Housing Loans - Key Criteria

  • The House Purchase Loan is available for first time buyers and is for a maximum loan-to-value ratio (LTV) of 97%.  Applicants must be first time buyers as defined in the Housing (Local Authority Loans) Regulations 2009 (S.I. 145 of 2009) and aged between 18 and 70 years of age.
  • Neither applicant can be a current owner of property.
  • The property must be situated in the Republic of Ireland and must have a gross internal floor area of 175 square metres or less, be in good condition and have good marketable title.
  • The property cannot exceed a value as determined by the local authority.  This also applies to a property purchased under Shared Ownership.
  • The applicants must occupy the property as their normal place of residence
  • The maximum loan amount is €220,000.
  • The maximum loan term is 30 years and must be repaid by an annuity of principal and interest combined.  All payments shall be made at monthly intervals.
  • All loans will be advanced based on the applicant’s capacity to repay using net income ratio calculations (details included).  Repayments on the mortgages advanced should not exceed 35% of after tax disposable income (unless approved by the local authority lending manager or the credit committee). Repayments should be calculated on an interest rate of up to 5.5% (over 30 years) to allow for future interest rate increases (stress testing).
  • Single applicants must not be earning greater than €50,000 per annum.  The combined income of joint applicants must not be greater than €75,000 per annum.  Applicants must have a credible savings record.
  • Applicants must be of good credit standing with a satisfactory credit record.
  • The primary earner on the application must have at least two years continuous employment (this can be self employment) and the second applicant must have at least one year. In certain circumstances exceptions to this policy will be considered.
  • The application form must provide details of marital status, dependents, current & previous employments, other borrowings, savings, details of property proposed for purchase and any other information requirements that may be determined from time to time.

Information that must accompany an application:

Personal Details

  • Passport. Proof of EU or EEA citizen or legal right to remain in Ireland on a long-term basis (in which case GNIB card needed)
  • Aged between 18 and 70
  • Must be a first time buyer (evidenced by HPL1)

Credit Check Authorisation

  • Applicant must consent to the carrying out of credit checks and reporting

Anti Money Laundering

  • Standard requirements; identity & address verification

Employment

  • Up to date P60
  • Minimum of 4 out of last 6 payslips

Self Employment

  • Minimum of two years accounts with either Accountant’s Report or an Auditor’s Report (ACCA, ACA, CPA or IPA) along with an up to date tax balancing statement and preliminary tax receipt for the company or business

Bank Statements (Original or stamped branch copies only – no internet copies)

  • 6 months most recent current account bank statements
  • 12 months most recent statements of savings
  • Wage/salary payments must be visible on statements

Proof of Inadequate Loan Offer

  • Confirmation of inadequate loan offers by two financial institutions (bank or building society lenders only)

 

For further information please contact Francis Meehan 047 30526 / 30503