80% finance investment mortgage

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barryl

Registered User
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194
Hi there
I have just bought a property using Ics 80%ltv.I was impressed how little info. they needed, they were just interested in the property rent, and didnt require income details which suited me as I am self employed.What I want to know is,is it possible to get 85% or higher ltv under the same lending criteria, and what lender or broker deal with me.

thanks
Barry
 
Re: 80% finance investment mortgage(question)

barryl said:
Hi there
I was impressed how little info. they needed, they were just interested in the property rent, and didnt require income details which suited me as I am self employed.
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I don't think its impressive at all that banks are prepared to give out large mortgages on very little information. While I accept the rent is the main factor by which an investment property should be judged, there is always the possibility of vacant periods and other income will factor into how well placed a borrower will be to cover the shortfall during such a period from their own resources.
 
Re: 80% finance investment mortgage(question)

Damo99 - Of course everything you say is true, but the banks are lending to adults and are not there to 'Mother' an investor. At what point does one draw the line between what should be asked and what could be considered obstructive/intrusive?
 
Re: 80% finance investment mortgage(question)

These 80/20 Deals From Ics Are For Investors With 4+ Investment Properties.the Criteria Used By The Bank Assumes Your Income Can Cover Voids Etc, I Think They Are More Interested In Net Worth And Debt To Equity Ratios. From An Investment Point Of View I Want To Lessen My Risk By Using Less Of My Own Cash,thanks For All Your Coments So Far,
Barry
 
Re: 80% finance investment mortgage(question)


That's an entirely different situation! Have you asked ICS if they'll up the amount? In general AFAIK lenders usually give 75%...80% depending on net worth. I don't really understand what you mean 'lessen my risk by using less of my own cash'?? If it all comes tumbling down everything goes anyway. Unless you mean that you'd have a better cash flow situation in case of voids etc.?
 
Re: 80% finance investment mortgage(question)

Yes,if The Deal Went Wrong,the Bank Will Take The Investment Back And Sell It,if This Does Happen Your 20% Is Lost,however If Your Risk Is 10% And The Bank Lend 90% You Will Lose Less
 
What lenders consider lending for two properties based solely on rental income (and not on salary etc) ? Any info appreciated.
 
Yes,which Bank And What Are The Rates, And Is "interest Only"in The Deal, Barry
 
"Yes,if The Deal Went Wrong,the Bank Will Take The Investment Back And Sell It,if This Does Happen Your 20% Is Lost,however If Your Risk Is 10% And The Bank Lend 90% You Will Lose Less"

Hi all,
I have nothing to add to the original query, but the above is untrue and I thought it no harm to flag it in case anybody was misled into making bad investment choices.

Non-recourse lending (where the bank has no comeback against you if there is a shortfall on the sale of the security) is common in some jurisdictions, but is not normal in Ireland. In this country, if the bank are left with a shortfall, they will pursue you for it.

At the time of the last price crash in the UK, 'debt advice agencies' sprung up and frequently advised people to hand over the keys to the bank\building society. Some of those people are now being pursued for the 'negative equity' shortfall- with interest -which arose when the banks sold up (the 'advice agencies' being long since gone of course).

The only people who can afford to be in default on loans are the very poor and the very, very rich.
 
I assumed that if the bank repossessed and sold the property that they took what was owed plus expenses and the rest went to the original owner. Is this correct??
 
I don't think so - if the borrower defaults then the property can be repossessed in full by the lender as far as I know. If the property then sells for twice what's owed then the lender keeps the lot as far as I know.
 
dublinamerica,
all lenders will lend based solely on rental income, they differ on how much they will lend and the maximum LTV they will allow.
Bank of Scotland are the most generous lender using rental income alone but will only lend up to 75% of the property price. PTSB, IIB, EBS will lend up to 90% of the property value but will not lend as much as BOS based on the rental income alone.
Hope this makes sense.

PS: BOS allow full rental income, PTSB only allow a certian percentage of it to allow for vacant periods etc.
As a professional investor, no lender comes close to ICS, they know this hence the cap their lending at MAXIMUM 80% LTV.
 
ClubMan said:
I don't think so - if the borrower defaults then the property can be repossessed in full by the lender as far as I know. If the property then sells for twice what's owed then the lender keeps the lot as far as I know.
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I better look into that one! Not intending to default but that really seems unfair!
 
I got both loans from AIB. One was for a buy-2-let and the 2nd is a holiday home which is not being rented. I'm not sure whether I have over €400k equity in my own private home makes a difference but I have both properties on interest only for the time being.

I plan to sell the buy-2-let next year and the equity built up on that to clear a lot of the mortgage on the holiday home and then go to capital & interest repayments on the holiday home.
 
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