Okokokoknic
Registered User
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A friend is looking at the First Homes Shared Equity
https://www.firsthomescheme.ie/media/m1dbsvae/0833-first-homes-faqs-r7.pdf (The First Homes Scheme offers the following in their FAQs)
I am wondering how this would work at a practical level.
If someone is getting a mortgage of 250K and 110K via FHS, do they get a Mortgage Protection Policy for 360K? Is it possible to have multiple deeds of assignment for a single policy? Or would the DOA for the bank be enough, leaving the balance to the estate to cover FHS?
Or would two separate policies, each with an appropriate deed of assignment be required?
I understand for MP policies, the amount covered is essentially dropping off over the term of the policy.
For FHS however, the value of the payment due to FHS increases with the market valuation of the property - so would a policy covering FHS potentially need to be increasing over the term rather than decreasing? (Of course someone can pay off part of FHS at any time).
From what I can tell, a Policy covering FHS doesn't seem to be mandatory, but would be recommended if the estate of the homeowner wished to hold on to the property.
https://www.firsthomescheme.ie/media/m1dbsvae/0833-first-homes-faqs-r7.pdf (The First Homes Scheme offers the following in their FAQs)
I am wondering how this would work at a practical level.
If someone is getting a mortgage of 250K and 110K via FHS, do they get a Mortgage Protection Policy for 360K? Is it possible to have multiple deeds of assignment for a single policy? Or would the DOA for the bank be enough, leaving the balance to the estate to cover FHS?
Or would two separate policies, each with an appropriate deed of assignment be required?
I understand for MP policies, the amount covered is essentially dropping off over the term of the policy.
For FHS however, the value of the payment due to FHS increases with the market valuation of the property - so would a policy covering FHS potentially need to be increasing over the term rather than decreasing? (Of course someone can pay off part of FHS at any time).
From what I can tell, a Policy covering FHS doesn't seem to be mandatory, but would be recommended if the estate of the homeowner wished to hold on to the property.