1 We are only lending maximum of 50- 60% LTV ratio and you would have to be AAA+ or Tesco to receive this
Sounds like a local official hiding the real reason from you. I would imagine that there are parts of the country where the bank is less enthusiastic about lending.2 You are outside of the Dublin area (????)
I understand that the banks are now looking at future repayment capacity rather than history, which again is a good thing.3 Your good financial track record and well conducted accounts with us is worthless
If your capital and interest are significantly lower at 15 years, surely you can manage them at 12?4 Maximum term offered is 12 years on any commercial loan to buy a property but I need 15 years.
My capital and interest repayments would be significantly lower than the rent I'm currently paying.
Seems reasonable to me about the 60% LTV. The bank is entitled to set such a criterion. Such loans have a higher default rate so a higher deposit is often required. I am surprised that they told you that you had to be AAA+ to get it. I presume that this was not in writing?
Sounds like a local official hiding the real reason from you. I would imagine that there are parts of the country where the bank is less enthusiastic about lending.
I understand that the banks are now looking at future repayment capacity rather than history, which again is a good thing.
If your capital and interest are significantly lower at 15 years, surely you can manage them at 12?
So I'm going to strongly disagree with you here Brendan as this is a prime example of banks not wanting to lend to small SME.
I already have received commercial loans from the same institution at 80% LTV with even a 20 year term on one.
Suggest you send it to the Credit Review office
. I never knew there are parts of the country where banks are less enthusiastic to have a loan repaid! This official seems to believe it's every sq mile outside the greater Dublin area.
Not necessarily a good lending practise at the moment. Restricting business lending to this level of LTV will prevent many good businesses from getting access to funds. LTV lending was the main cause of the property bubble. An 80% LTV limit is acceptable provided the assocaited cash-flow analysis of the proposal identifies a satisfactory level of repayment capacity on a stressed interest rate.1 We are only lending maximum of 50- 60% LTV ratio and you would have to be AAA+ or Tesco to receive this
Absolute nonsense. No lender can restrict borrowings only to borrowers within Dublin. This certainly does not sound like a Bank Policy, but more a made up excuse.2 You are outside of the Dublin area (????)
Shocking response. the main criteria for advancing funds to clients is their historical banking & business track record and reliance on their capacity to continue to run their business in a profitable manner.3 Your good financial track record and well conducted accounts with us is worthless
I can't see this as being official BoI lending policy. this restriction makes no sense and again would disallow a high level of good loan propositions.4 Maximum term offered is 12 years on any commercial loan to buy a property but I need 15 years.
Excellent. This should be a good indicator of your ability to pay the rent plus put funds by to meet future repayments.I have 30% of the purchase price available
Again a very positive indicator.My capital and interest repayments would be significantly lower than the rent I'm currently paying.
I think it's better to get a fuller picture of the case first. If Siofra has other loans and properties, it may be that BoI's decision is perfectly reasonable. BoI is one bank which is more open to lending at the moment.
Brendan
OP, In case you aren't aware, the lunacy as to how the Banks carelessly threw money around in the past is been thrown against those that towed the line. Nobody, No person or No entity have a right to force banks to lend to them. They are not a Public facility to be used or abused.
One is almost paid off and have equity it far greater than the amount of negative equity in the other,
I cannot get a commerical loan to buy a property I'm renting.
My bank informed me
3 Your good financial track record and well conducted accounts with us is worthless
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