IS NEW ‘iCARE’ PLAN BESTFOR HOMEOWNERS IN ARREARS?
Q We have an AIB mortgage and are in difficulties with arrears. I see there is a new scheme (iCare Housing) for people like us, although it seems to have come in for criticism. Is this the best option for me? A iCare Housing has been set up to provide and manage housing for troubled borrowers who are eligible for the Mortgage To Rent scheme and social housing.
It’s basically a housing association of the type that has proven successful in managing social housing across Europe. The criticism related to the fact that it’s unfair on people who pay their mortgage if those who don’t pay can have their debts written off. But this is a good scheme for you, if you can manage to get on it.
The new deal, an enhanced version of the Mortgage To Rent scheme, is a joint venture between the AIB Group, including EBS and Haven – and the Irish Mortgage Holders Organisation.
If your mortgage debt is deemed unsustainable following an assessment by AIB, you may be eligible for the Mortgage To Rent solution. If you complete the process, then ownership of your home can be transferred to iCare Housing and you become a longterm tenant of it.
Any remaining mortgage debt, following this property sale to iCare, is written off.
You then have the option to buy back your home, at any time, at the price that iCare Housing paid for the property, including any discounts negotiated between iCare Housing and the bank.
David Hall, CEO of the IMHO and iCare, described the deal as ‘a hugely significant day for those who have been struggling with unsustainable mortgage debt for the last number of years. For AIB, EBS and Haven customers, an option now exists to remain in their homes, have residual mortgage debt written off and buy their home back in the future for a price that is discounted from today’s market value.
‘For people who are in trouble with their mortgage, I would encourage them to contact us – solutions exist that allow families get their lives back and allow them stay in their home.’
As an Approved Housing Body, iCare will be funded via the Housing Agency, rent roll from the local authority and commercial lending. Contact numbers: IMHO: 1800 988 977. AIB/EBS/Haven: 1800 200 811. Q Our son is going to college and living in Dublin. Which bank is best for student bank accounts and credit cards? A All banks are similar when it comes to current accounts. There are zero charges on ATM transactions, for example. However, there is Stamp Duty of 12c on all ATM withdrawals.
Bank of Ireland doesn’t have an overdraft but it does arrange student loans of up to €1,000 to cover emergencies. This is at a rock-bottom APR of 1%, which is a very low rate of interest, and is preferable to an overdraft at a much higher rate of interest. It’s probably best to have a formal process and repayment schedule too, in order to discourage students from going overboard, and encourage an organised repayment schedule.
There are some differences in the credit card deals, as outlined below. KBC has the most generous credit limit at €1,000. However, while handy to have when waiting for grant money to come through, this could prove a double-edged sword if your son racks up a high credit card bill.