€400m ‘First Home Scheme’ to help first time buyers

€400m ‘First Home Scheme’ to help first time buyers

Posted on 07Jul

A new Government scheme, set up to make it easier for first-time buyers to afford a new build home, has opened for business today.

The €400m ‘First Home Scheme’ aims to bridge an existing affordability gap by providing buyers with part of the purchase price for their home, in return for the scheme taking a minority equity stake.

The maximum stake that the scheme will take is 20%, if the buyer is also availing of the Government’s separate Help to Buy scheme, and 30% if Help to Buy is not used.

The scheme is available initially to first-time buyers and other qualifying homebuyers, including people affected by a relationship breakdown or insolvency, who are taking out mortgages from AIB (including its EBS and Haven Mortgages businesses), Bank of Ireland or Permanent TSB.

Other mortgage providers may join the scheme in the coming months.

It is open to buyers of newly-built houses and apartments in private developments.

When someone who has bought a home using the scheme subsequently decides to sell it, he or she will be required to use the sale proceeds to redeem the outstanding mortgage and pay to the scheme the portion of the sale proceeds that corresponds to the scheme’s equity stake.

For example, if someone received 20% of the purchase price when they bought the home, he or she will have to pay the scheme 20% of the proceeds when they sell the home.

Scheme users will have the option, but not the obligation, to buy out some or all of the First Home Scheme equity stake at any time, if they wish and have the resources to do so.

No payments are due to the First Home Scheme if the equity stake is bought out in the first five years of ownership.

From year six onwards, scheme participants will be liable for a service charge.

 

The scheme is making €400m available, to facilitate the purchase of up to 8,000 homes over a five-year period, subject to demand.

“This scheme we are launching today will support first-time buyers and those seeking a fresh start by helping to bridge the gap between what they can afford and the price of the home they wish to purchase,” said Darragh O’Brien, Minister for Housing, Local Government and Heritage.

As a founding partner, Bank of Ireland said it is investing €70m into the First Home Scheme.

Bank of Ireland said that supporting the construction of new homes is of strategic importance for the bank.

“We finance homebuilding nationwide that aims to provide suitable options for all home buyers,” it said in a statement.

Alan Hartley, Director of Home Buying, Retail Ireland, said, that Bank of Ireland strongly supports the ambition of many of its customers to own their own home.

“Our participation in the First Home Scheme as a founding member reflects our ongoing commitment to help first time buyers get their first step on the property ladder,” Mr Hartley said.

“We are also delighted to be a part of a scheme which supports the delivery of energy efficient homes and a societal move towards a low carbon future,” he added.

AIB has today also welcomed the launch of the First Home Scheme, which forms part of the Government’s Housing for All plan.

Colin Hunt, the chief executive of AIB, said that addressing the housing supply deficit is one of the most urgent social and economic issues the country is facing.

“AIB is delighted to welcome this joint initiative, which has opened for applications today, providing more people with the opportunity to own their first home,” Mr Hunt said.

He said that AIB offers those looking to buy their first home a wide variety of competitive rates through our AIB brand, along with our EBS and Haven brands.

“We also offer low green mortgage rates for those wishing to buy energy-efficient homes1 to encourage and support the transition to a low carbon economy,” he added.

Director of Property Industry Ireland, Dr. David Duffy said it had been seeking the introduction of such a scheme for some time and welcomes today’s launch.

“The scheme will offer more families the opportunity to own their own home. The scheme will stimulate the supply of new homes aimed at first-time buyers,” he said.

Property advisor, Savills Ireland said it was delighted to see the scheme begin.

“Affordability is the central issue at the heart of Ireland’s housing problem, therefore we welcome the government’s intervention to bridge the affordability gap by providing buyers with part of the purchase price for their home,” said David Browne, Director of New Homes.

“Although it won’t solve the overall issue of affordability, it is a step in the right direction.”


MyMortgages.ie is a Proud Partner of Avant Money

Posted on 09Feb

Avant Money (formerly known as Avantcard) launched today and confirmed its new mortgage products are now available to Irish customers, with fixed rate mortgages starting from 1.95%, by far the lowest rate in the market today.

The company has been providing credit cards and personal loans to Irish consumers for over twenty years. Avant Money is owned by Spanish banking group Bankinter, which also has operations in Portugal and Luxembourg.

We, at MyMortgages.ie, are proud to announce that we are one of Avant Money’s partners and we are here to guide and advise switchers, movers and first-time buyers on the range of these new products.

Joey Sheahan, Head of Credit, MyMortgages.ie and author of The Mortgage Coach says:

Avant Money’s entry into the Irish market is the best news for Irish mortgage holders. We have long seen European rates well below 2% compared to closer to 3% for Irish mortgage holders, and now, for the first time since before 2008, rates below 2% are available to homeowners in Ireland. It’s a once in a decade or maybe even 2 decade opportunity where a new lender enters the Irish market and reduces interest rates to this extent. We are delighted to be one of Avant Money’s partners and our advice to mortgage holders is now is the time to review their current mortgage, even if they have done so recently. A mortgage holder with €300,000 outstanding with 32 years remaining and Loan to Value of below 60% can save €158 monthly or €60,000 over the term of mortgage based on reducing interest rate from 2.95% to 1.95%”.

If you would like to talk to Joey about your particular situation complete the form below:

 


Breaking News: Avant Money to offer mortgages at lowest rate on market

Posted on 15Sep

Consumer finance company Avant Money has begun taking applications for its products from Monday with a fixed rate mortgage offering that is the lowest on the market.

Avant Money, formerly known as Avantcard, is based in Carrick-on-Shannon in Co Leitrim and is owned by Spanish banking group Bankinter.

Its new mortgage products are now available to Irish customers, with fixed rate mortgages starting from 1.95 per cent, the lowest rate on the market.

“We have long seen European rates well below 2 per cent compared to closer to 3 per cent for Irish mortgage holders, and now, for the first time since before 2008, rates below 2 per cent are available to homeowners in Ireland,” he said. (Joey Sheahan)

Avant Money executive Chris Paul said: “We are confident that our products and rates will be appealing to Irish customers who have been under-served for far too long when it comes to their mortgages.

“Unlike other providers, we have shunned short-term gimmicks such as cashback offers in favour of products and rates geared towards providing true, quantifiable savings over the life of a typical mortgage.”

Minister for Public Expenditure Michael McGrath said the added competition was good news for Irish home buyers.

“Mortgage rates in Ireland have been falling for awhile, but remain much higher than most eurozone countries,” he said.

“News today of a new entrant with low rates and rate reductions by existing lenders is very good news for consumers.”

Read the full article on Breaking News here – https://www.breakingnews.ie/business/avant-money-to-offer-mortgages-at-lowest-rate-on-market-1017873.html


RSVP: ‘Never been a better time for homeowners to switch’ thanks to new mortgage provider

Posted on 15Sep

“It’s a once in a decade or maybe even 2 decade opportunity where a new lender enters the Irish market and reduces interest rates to this extent.” says Joey Sheahan, author of The Mortgage Coach and Head of Credit at MyMortgages.ie says

‘Never been a better time for homeowners to switch’ thanks to new mortgage provider, says Megan Martin of RSVP

“It’s a once in a decade or maybe even 2 decade opportunity where a new lender enters the Irish market and reduces interest rates to this extent”

By Megan Martin, RSVP

In response to the newcomer, AIB announced today that they were introducing a new Loan-to-Value (LTV) fixed rate for mortgages with a fixed rate as low as 2.25%.

“Avant Money’s entry into the Irish market is the best news for Irish mortgage holders. We have long seen European rates well below 2% compared to closer to 3% for Irish mortgage holders, and now, for the first time since before 2008, rates below 2% are available to homeowners in Ireland,” said Joey Sheahan, Head of Credit, MyMortgages.ie and author of The Mortgage Coach.

“It’s a once in a decade or maybe even 2 decade opportunity where a new lender enters the Irish market and reduces interest rates to this extent.

Read the full article on RSVP here – https://www.rsvplive.ie/life/never-been-better-time-homeowners-22681797


Biz Plus: Avant Money Enters Irish Mortgage Market

Posted on 15Sep

“We are delighted to be one of Avant Money’s partners and our advice to mortgage holders is now is the time to review their current mortgage, even if they have done so recently.” says Joey Sheahan, Head of Credit at MyMortgages.ie


Fixed-rate mortgages from 1.95%

Joey Sheahan, head of credit with MyMortgages.ie, welcomed Avant Money’s entry into the Irish market. “We have long seen European rates well below 2% compared to closer to 3% for Irish mortgage holders, and now, for the first time since before 2008, rates below 2% are available to homeowners in Ireland.”

“We are delighted to be one of Avant Money’s partners and our advice to mortgage holders is now is the time to review their current mortgage, even if they have done so recently.

“A mortgage holder with €300,000 outstanding with 32 years remaining and Loan to Value of below 60% can save €158 monthly or €60,000 over the term of mortgage based on reducing interest rate from 2.95% to 1.95%.”

Read the full article on Biz Plus here – bizplus.ie/avant-money-enters-irish-mortgage-market/


Irish Times: Avant Money enters mortgage scene with lowest rate on Irish market

Posted on 15Sep

Joey Sheahan, head of credit at MyMortgages.ie, said Avant Money’s entry into the Irish market was the “best news” for Irish mortgage holders.

“We have long seen European rates well below 2 per cent compared to closer to 3 per cent for Irish mortgage holders, and now, for the first time since before 2008, rates below 2 per cent are available to homeowners in Ireland,” he said.

Pricing war begins as AIB responds with new loan-to-value fixed rate of 2.25%

Leitrim-based consumer finance company Avant Money has begun taking applications for its products from Monday with a fixed-rate mortgage offering that is the lowest on the market.

Avant Money, formerly known as Avantcard, is based in Carrick-on-Shannon with a second office in Dublin. It is owned by Spanish banking group Bankinter and has been providing consumer finance products to Irish consumers for more than 20 years.

 

Joey Sheahan, head of credit at MyMortgages.ie, said Avant Money’s entry into the Irish market was the “best news” for Irish mortgage holders.

“We have long seen European rates well below 2 per cent compared to closer to 3 per cent for Irish mortgage holders, and now, for the first time since before 2008, rates below 2 per cent are available to homeowners in Ireland,” he said.

“It’s a once-in-a-decade or maybe even two-decade opportunity where a new lender enters the Irish market and reduces interest rates to this extent.

“We are delighted to be one of Avant Money’s partners and our advice to mortgage holders is now is the time to review their current mortgage, even if they have done so recently.

“A mortgage holder with €300,000 outstanding with 32 years remaining and loan-to-value of below 60 per cent can save €158 monthly or €60,000 over the term of mortgage based on reducing interest rate from 2.95 per cent to 1.95 per cent.”

 

Read the full article on The Irish Times – https://www.irishtimes.com/business/financial-services/avant-money-enters-mortgage-scene-with-lowest-rate-on-irish-market-1.4354349


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