Refused mortgage for investment E104000 ??

[gar32]

Hi all,

I was looking to change a Mortgage I have with sister. She is moving out and we will rent the place. I ask BOI for investment mortgage for E104000 which would be E570 a month to pay back and we will rent the place for E800 a month. Its a switch from INBS which we pay more for now so it would be even easier for us to pay.

BOI said they only do investment mortgages for E350000 or more in Dublin. The mind boggles can any one explain why this is?

Kind regards Gary

 

[LDFerguson]

Lenders are being very selective about who they will lend to, and what security they will accept at present. Investment lending has always been, and remains a higher risk than family home lending so some banks are seeking to reduce their exposure to this area.

I'm speculating here, but I'd imagine that the €350,000 limit seeks to exclude lower value properties.

Try other lenders.

 

[NorthDrum]

Hi all,

I was looking to change a Mortgage I have with sister. She is moving out and we will rent the place. I ask BOI for investment mortgage for E104000 which would be E570 a month to pay back and we will rent the place for E800 a month. Its a switch from INBS which we pay more for now so it would be even easier for us to pay.

BOI said they only do investment mortgages for E350000 or more in Dublin. The mind boggles can any one explain why this is?

Kind regards Gary

LTV = Loan to value

ICS offer up to 80% LTV
First Active up to 50% LTV
Haven up to 70% LTV - Min Income €30k single, €45k joint app
AIB up to 85% LTV
IIB up to 80% LTV (subject to location)Min Income €32k single, €50k joint app

These are the main Rental Income Property lenders.

Just a word or caution, if you end up going with Haven, just expect delays, many many delays. I have found them to be awful at service and quite inept at getting things done (but they get there in the end, just very stressful).