First Active now offering 100% of discounted price

L

LDFerguson

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I see First Active are now offering to lend 100% of the discounted price for qualifying buyers of Affordable Housing Scheme houses.

Liam D. Ferguson
www.ferga.com
 
Where can I get information about 100% mortgage for affordable housing with first active
 
Doesn't seem to be on their website yet...here's an extract from their release to brokers...

First Active is launching an attractive mortgage package for customers eligible under this scheme. First Active will be the first in the Irish market to offer up to 100% LTV to affordable housing customers.

§ Up to 100% LTV of the discounted purchase price available
§ Affordable Housing Tracker Rate ECB+1.15% and Affordable Housing 5 year fixed rate (currently 5.53%) is available *
§ Flexible repayment options
§ Mortgage terms of up to 40 years

*All mortgage rates stress tested at ECB+2.75% (currently 6.75%)





Eligible Customers​








Customers eligible under the scheme are issued with a Confirmation of Lender (COL) certificate by a local authority.

§ If there is a scheme running in your local area, you can contact the local authority to get them signed up with First Active. All local authorities were sent the relevant forms by the Department for the Environment. Further information should be sought from the local authority directly or via www.environ.ie.

§ Before proceeding with mortgage application, please ensure that First Active has an agreement with the local authority who issued the Confirmation of Lender certificate (COL). The status of a local authority will be available from your Key Account Manager – you should contact the local authority directly to get them to register with First Active.

§ Customers must sign the affordable housing declaration and this sent with the mortgage documents to First Active at initial application stage.

§ The COL (original copy from Local Authority) must also be sent to First Active at initial application stage. Please ensure that the applicant name(s) is an exact match on the COL and application form.

§ There is no change to the normal process for valuations, issuance of loan offer, completions and payments.






Policy​









Normal First Active policy and affordability criteria are applicable to this scheme.

§ Only available to customers & properties approved by the local authority
§ Top Up or Buy To Let not available
§ Not available to Refinance or switcher cases
§ Guarantors and stage draw downs not available
§ No interest only mortgages available
§ Offset mortgage not available
§ Customers not eligible for more than 1 mortgage under affordable housing scheme
§ Life Cover - Consumer Credit Act 1995 requires mortgage protection for borrowers to be in place at time of drawdown of a housing loan, except in certain circumstances
§ A first legal charge must be taken over the property - the local authority will affect a second charge
§ Properties to be mortgaged should have a minimum value of €85,000
§ In the case of an apartment, a management company should be in existence
§ Funds will not be advanced for the following categories :
- Flats (on any level) in multi-storey type property exceeding five storeys, unless the property is predominately in private ownership
- Multiple type dwellings i.e. bedsits with shared front door access
- Self build properties on Affordable Housing sites allocated by Local Authority - Stage payments are not permitted for this scheme




Loan Amount & Term​









§ Minimum € 50,000
§ Maximum € 500,000 (Up to 100% LTV of the discounted sale value)
§ The value of a property is deemed to be the lower of the cost or the valuation figure
§ Minimum Term 5 years
§ Maximum Term 40 years provided age is not over 70 years at maturity date and subject to serviceability after retirement age




 
Have the councils said anything to anyone about this?? Has the 3 now become 4?
 
I have known about this for a while, probably around time Liam posted this first (thought everyone did really) but anyway why would you take out 100% of price if you had savings. Fair play to Liam for letting people know tho anyway.
 
I was enquiring about the Affordable Housing Initiative for Fingal and was told that First Active offer mortgages for AH.
 
First Active offer 100% of discounted price to all Applicants of Affordable Housing. However, only about 7 Local Authorities have registered. If the Local Authority have not registered, you can call them directly and ask them to register.
 
I spoke with SDCC and they advised me that NO - I can only get 97% mortgage, even though EBS and FA are offering 100%. They said they received circulars from the Dept of Environment and it said that a 3% IS required.

Where does this leave the banks if they are offering this? Its very confusing...
 
The banks are offering 100%. If a 3% deposit is required, this wil be refunded on drawdown of your mortgage.
 
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