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Buy-to-let - what ratios are banks giving?

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  • 20-09-2014 11:23am
    #1
    elastico
    Closed Accounts Posts: 4,592 ✭✭✭


    I know everybodies circumstances are different but I am just looking for some rough estimates on the below please.

    Can anybody give me a rough idea on what banks are offering at the moment?

    We are both on similar salaries so is it 2 x first salary and 2 x second salary, or more, or less?

    Is it upto 75% of the mortgage so whatever we have ourselves equates to 1/4 of what our budget will be?

    Our existing property is approx. €160K value and 70k Loan.


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    #2
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    Really depends on the lender- and they do appear to be changing their criteria with remarkable frequency.

    BOI have no issue with 75% LTV ratios- subject to standard financial scrutiny of your affairs (its just the normal pack). No idea about other lenders- though things are not as competitive since Danske pulled out.


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    #3
    elastico
    Closed Accounts Posts: 4,592 ✭✭✭elastico


    The_Conductor wrote: »
    Really depends on the lender- and they do appear to be changing their criteria with remarkable frequency.

    BOI have no issue with 75% LTV ratios- subject to standard financial scrutiny of your affairs (its just the normal pack). No idea about other lenders- though things are not as competitive since Danske pulled out.


    Thanks for that, what do you mean by "its just the normal pack"?

    I assume 4 times combined salary is within normal parameters, or would they do 5 times?


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    #4
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    elastico wrote: »
    Thanks for that, what do you mean by "its just the normal pack"?

    I assume 4 times combined salary is within normal parameters, or would they do 5 times?

    5 Times combined salary? Not a snowballs chance in hell.......
    4 + 1.5 or 2 is probably as high as they will go.
    It depends on a lot of factors though- not least- your current financial situation, where the proposed property is, what the assessor says, reasonable rental yield reduced by standard 2/12 etc etc

    Go to a broker and get a few ideas from them- its quite specific to your personal circumstances- its difficult to give you a clear idea here.


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    #5
    elastico
    Closed Accounts Posts: 4,592 ✭✭✭elastico


    The_Conductor wrote: »
    5 Times combined salary? Not a snowballs chance in hell.......
    4 + 1.5 or 2 is probably as high as they will go.
    It depends on a lot of factors though- not least- your current financial situation, where the proposed property is, what the assessor says, reasonable rental yield reduced by standard 2/12 etc etc

    Go to a broker and get a few ideas from them- its quite specific to your personal circumstances- its difficult to give you a clear idea here.

    Thanks for that, when I said 5 times combined I meant 2.5 each, but to be honest I wouldn't be happy doing more than 2 x each salary, I was just wondering.

    Thanks for your help I'll talk to the bank and see what they say, I just wanted an outline for now.


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