What required for 100% interest only mortgage.

S

scrubs

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Hello,first time poster here.We would like to know if banks are going to give me a 100% interest only mortgage based on my current borrowings.I have current mortgage of 450,000 on property worth 1.1 m.We have savings to pay stamp duty and expenses.We would like to hear some opinions before we approach our bank.We are keen to know what sort of money they would consider loaning.This would be to invest in residential investment property/ies in Ireland.
Thanks for your opinions.
 
Thanks for your reply.I had read Brendans' piece on inv. prop. and he had said the ideal way is a 100% interest only mortgage.I presume you mean a fee based agent.Excellent forum.
 
markowitzman said:
incorrect........have a chat with your bank/financial advisor
Have done so.
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Really? Well that's shattered my illusions of fiscal prudence in the Irish financial system. Joking.

Surely only if secured against another property? Certainly no expert but that's always how I thought it worked.
 
Nope ......all a matter of negotiaition really.
An advisor helps to fight these battles for you with the banks.
 
markowitzman said:
Nope ......all a matter of negotiaition really.
An advisor helps to fight these battles for you with the banks.
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Are you sure that there isn't some leveraging/gering against other properties/assets involved? Surely lenders do not give out 100% RIP/BTL mortgages without some other security, either formally or informally "pledged"?
 
I have got them to cover loan stamp duty etc etc and I am not alone on this.
I know of one friend that got 120% to cover fit out etc on a Section 50 property.
Granted both of us have significant other assets but they were not brought into either deal.
 
markowitzman said:
I have got them to cover loan stamp duty etc etc and I am not alone on this.
I know of one friend that got 120% to cover fit out etc on a Section 50 property.
Granted both of us have significant other assets but they were not brought into either deal.
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I would imagine (hope) a different set of rules would be taken when a first time investor was involved.

It's essentially a business loan and I'd imagine the bank would take a completely different approaches if I cruised in looking for a million euro to finance an ostrich farm in Guyana, than if (Sir) Anthony O'Reilly walked in with the same business case.
 
scrubs said:
Hello,first time poster here.We would like to know if banks are going to give me a 100% interest only mortgage based on my current borrowings.I have current mortgage of 450,000 on property worth 1.1 m.We have savings to pay stamp duty and expenses.We would like to hear some opinions before we approach our bank.We are keen to know what sort of money they would consider loaning.This would be to invest in residential investment property/ies in Ireland.
Thanks for your opinions.
Click to expand...
Are you sure that concentrating so much of your wealth (including borrowed wealth!) in a single asset class and geographic region (Irish domestic property) is the most appropriate investment for your particular needs? Have you done a financial health check/fact find (DIY or with an independent, professional advisor) and objectively assessed all other possible alternative investment opportunities before deciding that property is the right one for you? Before somebody (once again) accuses me or others of being negative about property investments I am just pointing out what might be considered some prudent caveats about this query.
 
Totally agree Howitzer........one needs to develop a track record and relationship with the bank in order to get these sort of deals.
By having a few properties you build up the track record.
It surprised me on a personal level how quickly bank changed as I started to build up assets.
They want to loan the money to me for more deals........which is reassuring to me although it is hard to find property now to pay it's way.
If it doesn't then I would avoid.
Good article in business post today.. [broken link removed]
 
Thanks for the replies.I will now be speaking to the experts and will be aware of the possibilities.I always would have thought that as long as the repayments stack up then you will always win out in the long term.(15-20 yrs.)
 
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