Mortgage on owned-outright property

goosebump

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I bought an apartment 3 years ago for €140k. I was able to buy it without a mortgage, having come into some money through a bereavement. The market value of the apartment today is approx. €210k.

I contacted BOI today to ask if it was possible for me to take out a mortgage on the apartment now. They asked if I lived in it or it was an investment property. I stay in it 2 nights a week for work, and my brother lives in it full time. They said this meant it was an investment property.

The said equity release would be "tough". I would only be able to borrow up to 50% of what I paid for it, and that I would have to demonstrate that I was able to buy it outright through saving.

This seem extraordinary to me. If I were buying a new investment property, I'd be able to borrow up to 80% of the value, and what if I had bought the property 20 years ago? Would I still only be able to borrow 50% of what I paid for it?

Is this the norm for lenders? Does anyone know I specialist lender who could assist me?
 
That seems bizare.

I'd ask to talk to someone else.

What of you'd bought it in 2006 for 500k but it was only worth 250k now? Would you qualify for 250k?
 
Banks see buying a new property very different to trying to borrow against an existing property. Equity release was totally over used in the tiger years so banks have clamped down big time and it's a dirty word now. Most are only willing to release some of the equity for renovations to the property. I think that is very much the norm in today's banking world.

Try a broker to see if there is any bank willing to offer more than you are getting.
 
What is the purpose of the funds that you are looking to raise? Most banks will not consider releasing equity on a property for any reason other than renovations on that property. However, Pepper Homeloans will consider such lending, for a limited set of uses.

Best Regards,
Dave Curry, Irish Mortgage Corporation
https://ie.linkedin.com/in/davecurryirl
 
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