I have been involved in buy to let in a relatively small way for over 30 years.
I have always kept my mortgages up to date without ever having any communication from the bank. I am with the same bank for well over 30 years. I was recently offered a small block of Apartments in a very good town with a gross return of 11% after Management Co fees. The Apartments were fully let and in first class condition. The block is 6 years old and was being sold at 25% of the boom time price. I made an offer in writing subject to loan which would have been accepted had it not been subject to loan.
Prior to making the offer I had a meeting with the branch manager and I made my case. I was was looking for a loan of 25% of the purchase cost of the building and I was financing the rest of the price myself. I was very confident that I would get this Loan.
Today I got a phone call from the manager after over 2.5 weeks that I was being refused. The verbal reason was that head office refused it on the grounds that "AIB are over exposed to the Buy to Let sector" I made my feelings quite clear on the refusal.
Should they not be judging the borrower rather than their exposure to a sector. I am actually not looking for sympathy but rather exposing the myth that AIB are open for business.
I have always kept my mortgages up to date without ever having any communication from the bank. I am with the same bank for well over 30 years. I was recently offered a small block of Apartments in a very good town with a gross return of 11% after Management Co fees. The Apartments were fully let and in first class condition. The block is 6 years old and was being sold at 25% of the boom time price. I made an offer in writing subject to loan which would have been accepted had it not been subject to loan.
Prior to making the offer I had a meeting with the branch manager and I made my case. I was was looking for a loan of 25% of the purchase cost of the building and I was financing the rest of the price myself. I was very confident that I would get this Loan.
Today I got a phone call from the manager after over 2.5 weeks that I was being refused. The verbal reason was that head office refused it on the grounds that "AIB are over exposed to the Buy to Let sector" I made my feelings quite clear on the refusal.
Should they not be judging the borrower rather than their exposure to a sector. I am actually not looking for sympathy but rather exposing the myth that AIB are open for business.