Investment mortgage for non homeowner

I

investor17

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Hello

Is is currently possible for a person who doesn't own a home to get an investment mortgage.

The LTV of the mortgage would be about 60% and the loan amount would be about 3.3 times my gross salary. I am currently consistently saving about 1.5 times the potential repayment of the loan per month at current interest rates. I don't have any other loans or debts.

The idea would be to either rent out or sell the property once it is developed.

I have heard anecdotally that banks aren't giving out buy to let/investment mortgages unless you own your own home but I'm not sure if it's true.

Thanks!
 
I don't know the answer to the specific question, but I think it's a very bad idea to invest in property if you have not already bought your own home, unless you will never be buying your own home.

First Time Buyers usually have advantages over second time buyers e.g. 90% LTV mortgages, and grants to buy new houses.

If you do want to buy a home, your funds and borrowing capacity will be tied up in the investment property.

I see that you are referring to developing a property. So you are taking a fair bit of risk as well.

Best to avoid.

Brendan
 
Thanks Brendan. I understand the benefits being a first time home buyer brings. It's a pity that other property investments have an influence on your status as an FTB. If I were to invest the money in something else like shares or a business venture, it wouldn't have an effect on my FTB status in the future.

Thanks for the advise, I'll keep it in mind...
 
In the main, the Banks aren't lending money for buy to lets or in fact anything but family homes. For this reason the country is starved of new homes, where builders can't get money to build and buyers can't get money to buy.
 
investor17 said:
Hello

Is is currently possible for a person who doesn't own a home to get an investment mortgage.

The LTV of the mortgage would be about 60% and the loan amount would be about 3.3 times my gross salary. I am currently consistently saving about 1.5 times the potential repayment of the loan per month at current interest rates. I don't have any other loans or debts.

The idea would be to either rent out or sell the property once it is developed.

I have heard anecdotally that banks aren't giving out buy to let/investment mortgages unless you own your own home but I'm not sure if it's true.

Thanks!
Click to expand...

I don't have an exact answer to your question but my recent experience is:

I have an agreement in principle (I am currently doing the paperwork) with AIB to get an investor mortgage for a retirement property.
It is outside the Dublin commuter belt so the multiple to my salary is low (certainly far less than 3.3) but I was told I require 30% down. It might be 35% in some cases.
The interest rates are high though. I was quoted 4.85% - which might be a serious consideration on a more expensive property.

My advice would be to speak to a mortgage advisor. And my hunch is that anyone with 40% down won't be kept waiting.

EBS are not doing investment mortgages as a matter of policy is about all I have to add.

Good luck.
 
investor17 said:
Hello

Is is currently possible for a person who doesn't own a home to get an investment mortgage.

The LTV of the mortgage would be about 60% and the loan amount would be about 3.3 times my gross salary. I am currently consistently saving about 1.5 times the potential repayment of the loan per month at current interest rates. I don't have any other loans or debts.

The idea would be to either rent out or sell the property once it is developed.

I have heard anecdotally that banks aren't giving out buy to let/investment mortgages unless you own your own home but I'm not sure if it's true.

Thanks!
Click to expand...
Most banks wouldn't approve an investment mortgage for someone who doesn't own a house, but one of the main reasons is that they are concerned that the person is really planning to move into the property. If that means relocating, then there could be concerns about whether the person is planning to quit their job, which is the main basis on which the mortgage is approved in the first place.

If the property is not habitable right now, then there is very little chance of getting an investment mortgage, as the banks want to factor in rental income from Day 1.

Going back to the first point - do you currently live and work anywhere near the property you are thinking of buying?

Best Regards,
Dave Curry, Irish Mortgage Corporation
https://ie.linkedin.com/in/davecurryirl (LinkedIn profile and client testimonials)
 
The solution to your problem is to tell the bank you intend to live in it! That was hinted to you by another poster.

What do you mean by 'develop'

Any chance, for yourself, that you'd run the numbers by us on here. Most posters are against this type of investment, but I and a couple of others are not. I've always has 90% loans as well, and was offer erred more than that when the banks couldn't dish it out fast enough back in the day.
 
johnny1234 said:
Well Yesterday week, 2nd.December 2016, I spoke with KBC for nearly one hour twice, and each time I was told they'd call me back. I smell a rat and they know I won't let go. Tried to call their local bloke 6 times this week, left message each time, still no contact. So the best thing I'll do is have my solicitors write to them to advise, I'm stopping paying the mortgage on the property.
Click to expand...

I have no idea what this post has to do with the topic of this thread.

Brendan
 
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