remortgage possible with affordable housing?

All,
have just spent a very frustrating and annoying day in Cork CC. After getting bucket loads of info from everyone here, financial advice and legal advice, documents, proof of work, wages etc etc, went to Cork Cc today to meet with Law Dept offical regarding possible re-mortage. After spilling my heart out, citing my case and lots of nods of approval from CC, to be told "No". No to what i asked. Re-mortgage is not possible, not going to be done, no way no how. Ahhhhhhhhh

Go to your TD, ask him/her to put in a Parliamentary Question to the Minister for Environment asking is he aware that certain councils such as Cork CC are refusing to allow AH owners to remortgage, can they do this and what steps will he take to reverse this policy. I'd be interested to hear the answer.
 
Hi Brooklyn
Did you remortgage with a different lender? If so, why?

Whats the point in remortgaging if the clawaback still reamins on the title deeds and you are still bound to the Council? I'm confused.

The only reason why I would remortgage would be to;
First and foremost remove the clawback from title deeds which would allow me to lease it out
Fix the rate
Switch the Morgage Protection Policy which as you konw is too high.

Since none of this is possible then why bother?
 
Zen,

To answer your question, my purpose to re-mortage is to raise funds to build an extension (large on 2 storey). Banks etc will not give loan as the CC will still have Primary Charge on the loan, so the funds available from the Banks etc would only be a drop in the foundation, so to speak. Re-mortage seemed to be the only way but looks like this will not happen. this is not the end of it. I will not lie down until I get proper answers from Cork CC.
 
I would be looking to remortgage for the same reason as yourself Tired Paul. My hands are completely tied financially until this option becomes available. I emailed Olivia Mitchell the other day and she said she was submitting a parliamentary question to the Minister on it and come back when she had an answer as to when it will be added to the legislation. The saga continues :)
 
Ah, I see guys!

You are looking to remortgage simply for the sake of getting a loan because its impossible to do so these days!.

I was looking to remortgage to get some flexibility on the T&Cs!:eek: D'oh
 
I've just been in contact with 2 loacl TD's today - well their office anyway. I know one will definitly look into in more detail and other one - well I felt like I was wasting her time. I won't name names now but I'm not letting this rest.
I will consider going to local press over this becasue the more I get into it the more infuriated and angry I get with it. I'm not going to rant anymore because this is not the right place for it.
 
Fair play to you 'Tired Paul'! I too am expasperated with this situation. I am trying to remortgage for the same reasons as 'zen'. The pursuit of some sort of clarity around legislation going through Government coupled with wildly inaccurate and conflicting feedback from the council (SDCC) is frustrating in the extreme. I hope that your efforts bear fruit - Good Luck!
 
I remortgaged because I was on Shared Ownership and tired of paying rent to the Council for half the property.
 
Some positive news - at least for now. Have secured a meeting with one TD from the Cork area for next week. According to their assistant to whom I was speaking to this morning, they are aware of this issue and can see how it can be a burden. They started going down the road of me getting a grant from CCC to build the extension and get the balalnce from the bank (joke!!!) but after I pointed out that this would be time wasting and pointless they have set an appointment for late next week. Will keep ye posted on the outcome. Not going to hold my breath though.
 
So we all have different reasons then.


  1. I want to remortgage to change the T&C's so I can fix the rate or lease out as there are 4 of us in a 1 bedroom apt. Not Successful
  2. Brooklyn wanted to change from S/O. Successful
  3. Tired Paul wants to remortgage for a loan. Not Successful

So for purpose of terminology lets say

Remortgaging is (in the traditional sense) refinancing the mortgage to get a loan and not to change the T&C's

(As with Brooklyn).Remortgaging permits you to refinance the loan and change only selected T&Cs (from S/O to Annuity). Furthermore, only certain CCs allow this?!:confused:.

Seriously, if ANYONES solicitor explained to them back then what we understand now, NO ONE, and I mean NO ONE, would have signed up for this scheme. All 4 of us have to stay where we are for the next 20 years (we cant sell this place or lease it out) while above me in a 2X BEDRROM PENTHOUSE lives a single mother on the social co-habiting with her boyfriend. The council are aware of this (maybe not the co-habiting part) as the S/O person has actually registered with the PRTB, it seems they are turning a blind eye.:mad::mad::mad::mad::mad::mad::mad:
 
I know when we were looking at our home back in 2002, the CCC had very vague info available at the Show House. Looking back, its now clear as day that CCC hadn't a clue to the full T&C's associated with A/H Scheme. Part of the sales pitch to us was there was huge demand, miss this one and might not get a chance to get anywhere near the property ladder for another 3-4 years (wish at this stage i missed it and a whole lot more).
 
Just throwing this there cos I have a meeting with local TD tomorrow regarding re-mortgage issue.
Question - when we bought our AH house in 2002 the Council were the only ones giving the mortgages. Since then other lending insituitions can give mortgages for AH. BUT - WHO HAS THE PRIMARY CHARGE ON THE HOUSE - IS THE COUNCIL OR BANK.
Anyone in an AH with a mortgage other than the Council might be able to throw some light on this.
Thanks.
 
GOOD NEWS !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Local TD's office got back to me today. The legislation is almost changed. He has sent on more specific details which I will have in a day or so but more importantly he has said there is no reason for which the Cork CC cannot now accept my proposal for a re-mortgage. i will be making an appointment to day and will keep ue all posted.
 
Tired Paul, that's wonderful! Really looking forward to seeing confirmation and further details; good work!
 
Hi Tired Paul, did you receive the documentation from your local TD's office? If so, I would really appreciate you sharing it. Thanks
 
Hi Green28,

Yeah, got a personal letter from the Minister of Housing and Community (etc etc) - Willie Penrose. But since his departure last week I've been brickwalled so to speak. I have been in contact with his dept and the legislation to allow customers of AH's purchased before 2009 is being changed to allow them to either top up existing mortgages or re-mortgage. This was passed so to speak back in July this year but it needs to added to the Residencies Tennancy Act (haven't got the letter in front of me but think this is the correct bill) which will take a few months - I hope.
However, I've been in contact with Cork CC and surprise surprise they are not aware of any upcoming changes. But I'm not waiting for them. I've been onto banks, builders, architects etc to get all my stuff in order so that when the green light is given I'll have all that I need, hopefully.
 
Hi Tired Paul,

Thanks for the response, appreciate it. Here's hoping that this is finalised once and for all in the near future. Well done on your persistance; hopefully it bears fruit soon!
 
Parliamentary Question

To ask the Minister for the Environment, Community and Local Government if it is intended to reform the shared ownership scheme for those who bought affordable housing units under the scheme in the past; specifically, if any intended reform would address the severe inequity of the scheme whereby the rental equity value of the properties retained by local authorities have not been adjusted to reflect the radically reduced current market values; and if he will to resolve the position whereby purchasers of affordable units under the scheme cannot re-mortgage their properties as the local authority retains a first charge on the property..
- Michael McGrath.


For WRITTEN answer on Tuesday, 22nd November, 2011.

Ref No: 35919/11

REPLY

Minister for the Environment, Community and Local Government (Mr. P. Hogan)

The Government's housing policy statement announced the standing down of all affordable housing schemes, including the shared ownership scheme, in the context of a full review of Part V of the Planning and Development Act 2000. I expect that this review will include detailed analysis of the rental portion of the shared ownership scheme.

Should legislative change be recommended as a result of the review, I will give consideration to appropriate measures in the context of the proposed Residential Tenancies Amendment Bill, drafting of which was approved by Government on 26 July 2011.
 
Thanks for all the information on the thread so far people.
I was planning in the near future to remortgage with a different lender. Its good to have the heads up that this might be impossible.

I now think, judging from all the experiences ive read to date, that it might be better to sell my property to someone close to trigger the clawback when the house prices are at their lowest. My property is approaching the price I payed for it now so most of the clawback has been wiped from my deeds if i choose to sell. I think in a few more months, I shall have the place revalued and begin the ball moving on this.

It would free up the property to be lease-able and I could have the mortgage moved if needed. I plan to move to a new premise in the next few years to start a family so this lowering of house prices could be valuable to me :)
 
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