Are There Any Sub Prime Lenders Still Writing New Mortgage Business?

MortgageMaze

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Are there any subprime lenders left who are still lending for Irish residential property purchases?

I am looking for a mortgage to purchase a rental property to the value of €400k. I can put 300k towards the purchase (and have a fund to cover the purchase-related and initial outlay costs), which means I am looking to borrow €100k.

I have been turned down by my Bank because, although I have passed their ability-to-repay tests for a new mortgage of (in excess of) €100k, I have failed the Bank's risk-assessment test - due to the total, resulting level of debt being above their lending limits for a single applicant (my mortgage debt currently stands at ~€600k on two properties - however I have never missed a repayment and have still managed to save a substantial deposit).

I am confident in my ability to meet the additional repayment committment (the rental income that would service the repayments on a €100k loan would be between €1,650 and €1,800), and so I was wondering whether there are any other funding avenues open to me, where a lending decision would be based on ability to repay and on the debt-to-equity ratio? I have no dependents and am self-employed (with a long track record of continuous employment/income).

I am really hoping that this house will be my home in the not too distant future, which is why I am so keen to find a way to purchase.

Thank you for reading, and for any information you can share on this issue.
 
From the sounds of it, I don't think you need a sub-prime lender. ( As it happens, I don't think any of them are lending).Although your bank refused you, another bank might lend. It may be best to ask a mortgage broker to present the information for you.

Dilosk took over the ICS brand and , IIRC, they are specialising in mortgages for investment properties.

As you plan for this to be your home, would you consider selling one of your existing properties to reduce your borrowing?

Brendan
 
Brendan thank you so much for your feedback.
In answer to your question on disposing of one of the rental properties, I have left it too late, as the vendor is apparently keen to wrap up a sale. If I could go back in time (knowing what I know now), I would place one of the rental properties on the market in order to secure the target property. At the time, I misjudged my ability to secure a mortgage, and so did not consider this option (both properties are on Tracker mortgages and there was no apparent driver to sell).
When I was refused a 3rd mortgage, I asked the Bank whether or not they would consider allowing a temporary 'bridging' period, to allow me to secure the 3rd property while in parallel disposing of the 1st or 2nd rental property (to bring total level of borrowing within their lending limits). I had estimated a cross over period in the region of eight weeks, however the response was that they do not extend bridging finance.
 
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