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AIB Site purchase

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  • 28-06-2007 11:35am
    #1
    whitelightrider
    Registered Users Posts: 3,100 ✭✭✭


    Folks,

    Can anyone tell me what % of the site cost AIB will give? I thought it was 80% of the price of the site. I cant seem to find a definitive answer on the site.


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    #2
    Chipboard
    Closed Accounts Posts: 428 ✭✭Chipboard


    I wouldn't think that AIB would publish their Credit Policy on their website.

    It isn't black and white anyway. Every loan assessment is a function of a few characteristics. Repayment capacity, security, purpose and character being the main ones. The percentage they will fund is only a guideline. Exceptions are made to credit policy all the time as long as they are justifiable.

    Borrowing to buy a site has a couple of added complications like what happens if the planning on the site lapses or if you make a hash of the construction of the house (build risk).

    In general banks tend to stick to funding around 70-75% of any purchase. They generally fund a higher proportion of your private dwelling house or residential investment property because 1) its a competitive section of the lending market 2) people have a higher level of committment to repaying their homeloan and 3) the security is easily realisable.

    If your purchasing a site they will probably calculate how much you can afford to repay and give you this amount or 70-75% of the cost of the site (whichever is lower figure). If your income is strong I wouldn't imagine they would have an issue doing 80%.


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