Joanne Daly has been a broker for 13 years and in this piece she speaks to Karl Deeter about the errors that first time buyers make prior to making their mortgage application, thankfully most of what she mentions is easily rectified!
30 September 2015: The Insolvency Service of Ireland (ISI) has welcomed an amendment to legislation which will allow people on a lower income and with few assets to have debts of up to €35,000 completely written off.
The Debt Relief Notice, also referred to as a DRN, is one of the legally binding debt solutions provided under the Personal Insolvency Act available through the ISI. It allows for the complete write-off of debts such as personal loans, credit card loans, store card debts, credit union loans and overdrafts. An application for a Debt Relief Notice is approved by the Court and once it is granted, the person can no longer be contacted by creditors asking for those debts to be repaid.
Commenting on the legislative amendment, the Director of the ISI, Mr. Lorcan O’Connor stated:
“The Debt Relief Notice is intended for people with very limited means who are in genuine financial distress and we know from the hundreds of people who have availed of this debt solution already that it is life changing. I fully expect that the increase …
We are delighted that Irish Life decided to sponsor our book ‘Talking Money’ which is based on the successful radio segment that has been on the RTE Radio 1 ‘Drivetime’ show with Mary Wilson for about the last year and a half.
It’s free to download, here is a link to a pdf copy, or you can get it from Irish Life’s website, and we’ll have a limited number of hard copies too.
We are really excited about this and hope you find the information in the book useful – one thing is for sure, the price is right!
This is a question we regularly get, and it’s a tricky answer because it’s both ‘yes’ and ‘no’. If the property is a homeloan the answer is ‘no’, if it’s a buy to let then the answer is ‘yes’.
Perhaps you are wondering why this might be a question? Normally it’s because one of the couple have an issue that would adversely affect the mortgage application, such as a spouse who has a bad credit rating, or they might have other debts (like cars or personal loans).
Another thing that we see is the likes of Stamp 4 status or a persons legal status being an issue so in this case you might see them factored in when it comes to the running costs estimated but the lender will not factor in any of their income, this then puts very negative pressure on the application.
Can it be done? Not without committing a version of mortgage fraud. Regulated entities are required to disclose all facts to the bank when making a credit application on behalf of a customer (CP10 declaration), …
In this piece we were asked to contribute to a conversation on the constitutional right to housing. Maeve Regan from The Mercy Law Resource Centre discussed the merits of the idea which was put forward by the charity she heads up, while Karl Deeter took the view that an addition to the constitution of a right to housing won’t resolve the problem and that the right already exists.
We were really pleased that Morning Ireland covered our joint idea with Fr. Peter McVerry on a way to help reduce pressure in the rented sector by giving landlords tax breaks in return for rent-freezes.
The idea is simple, you allow landlords to get full mortgage interest relief and offset their local property tax in return for giving the tenant a ‘rent freeze’, this can be managed via the PRTB who already link in with Revenue on some matters.
The clip explains how it would work, in the piece you’ll hear Fran McNulty discussing this idea with Karl Deeter
Something that comes up with regular frequency is a question about ‘being a first time buyer’. The simple version is ‘one of us bought a house in (year XXXX) or had a house in the UK or invested in one with a friend’ etc. Now that person is in a relationship with a new person and they want to know if as a couple, they are a first time buyer.
The answer? No.
Sadly, this is similar to the way that Tax Relief at Source used to work, if you had bought a house anywhere in the world, including Timbuktu, you are no longer a first time buyer and by extension, neither is anybody that you buy a house with.
The fix? Sometimes the one person who is a first time buyer can qualify for the loan and they are able to do it themselves, years ago the answer was ‘two on mortgage one on the deed’ in order to be able to obtain Tax Relief at Source (which is now gone for all loans)
Nowadays you see only that …
How can you have a marginal rate of tax that is an effective 270% against profits? Easy, be a landlord. Although this example is styled to show the highest effective tax on net profits possible, it nonetheless supports our view that the tax code is anti-landlord and that landlords should be treated the same as every other business.
Is it too much to ask, that in return for helping to put a roof over a persons head you are treated as well as a sex-shop is in the tax code? The spreadsheet for demonstrating this calculation is here. Or just click on the image to see a larger version.
With Revenue set to receive the names of over 9,000 AirBnB ‘hosts’ we looked at the implications of this as well as other ways to make your house pay for itself. The obvious one is the tax free €12,000 ‘rent a room’ scheme, but it doesn’t stop there! Find out more as Karl Deeter and Jill Kerby ‘Talk Money’.
On the 10th of August we looked at the ‘financial milestones’ you should have reached by the time you are in your 30’s.
As with many things, these are not ‘set in stone’ but in general, they are good indicators of how you are doing on your road to financial health.