BTL Mortgages

B

Brenbo

Registered User
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I have been reading up on the Buy to Let (BTL) market in the UK for the last while.
Can someone tell me the following on BTL mortgages here in Ireland?
  • What is typical APR?
  • What is max LTV ratio bank will lend?
  • What rental coverage on repayments is required?
  • What is the interest only options i.e. max period?
I see some people in the UK are making a living out of buying houses for at least 15% below market value then remortgaging (LTV 85%) the same day hence actual putting no money into the property. In fact in most cases getting some back money if the house is purchased at more than 15% below its value. Is there anyone out there at this game in Ireland?
 
After a bit more research I found out that Ulster Bank will lend 100% LTV at a rate of 5.35 fixed till sept 2010 - seems to be the only one that will do 100% on Buy To Lets
Bank of Scotland will lend 95% LTV - best rate 5.23 fixed also to Aug 2010.
 
Hi that Ulster Bank rate and LTV lokks very good do you know what the rental cover is....125% ??

I have just been quoted 5.29% 85% LTV and 110% rental cover by CHL but apparently they are very slow to deal with .
 
Sorry - that Ulster LTV was wrong - it is 85% max. The figures I were given were wrong. Apologies for that.
 
clarecelt said:
What is the rental cover and how is it calculated
Click to expand...

Rental cover is the amount per month that the valuer estimates the property will rent for vs the intereste only loan payments per month.
So for example if you had a property at £115,000 with a £100,000 5.5% mortgage (and 15% equity put in) the payments would be £5500/12 = £458.33 per month.
If the rental valuation was £550 per month your rental cover would be 120% (£550/£458.33)
 
Out of curiousity where can one get a property where you have this type of rental cover.?/
 
I have invested in a UK property in Ipswich and also Hatfield through a company in Tuam. It is difficult to find good deals but they do exist.
 
Thanks ennisboy,
Interesting to note..do you mind pm'ing the company in tuam you dealt with?
Many thanks
 
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