• GOVERNMENT BACKED MORTGAGES FOR FIRST TIME BUYERS 22-02-2018

    First time Buyers will be able to get government-backed mortgages.

    Applicants can choose a fixed rate of interest for the duration of the loan.

    The scheme is aimed at people who don't qualify for social housing.

                 The mortgages can be used to buy a house up to:



     €320,000.00 in the greater Dublin area, as well as Cork and Galway

     and €250,000.00 in the rest of the country

                 The mortgages will be granted through local authorities

    Where the person's annual gross income does not exceed €50,000
    or for joint applicants it is €75,000


    Fixed rate
    The new Rebuilding Ireland Home Loan can be used both for new and secondhand
    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.


    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

    This information has been provided by thejournal.ie