Bank of Ireland unveils buy-to-let mortgage requiring 100% rental cover

Thursday, 19 October 2006 12:00

The Bank of Ireland has relaxed the lending criteria on its buy to let mortgages, requiring borrowers to demonstrate just 100% rental income cover.

Standard and self-certification mortgages have also had their lending criteria relaxed.

All changes are effective from Thursday October 19th.

Bank of Ireland's Buy to Let proposition:

• Rental income cover has been reduced to 100% of pay rate on fixed rate products of three years or more, or a notional rate of 6.50%,
  
• The portfolio limit has been increased from £1.5m to £2.5m, up to a maximum of 15 properties,
  
• The maximum individual loan amount has been increased from £400k to £500k at the product maximum of 85% LTV,
  
• The minimum age has been reduced from 25 to 21, and
  
• The requirement of 12 months BTL experience for borrowers seeking six or more (or £750k+) BTL loans with the lender, has been removed.

Bank of Ireland Mortgages residential lending criteria has changed as follows

• Increased income multiples for Standard, Self Cert and 1st Start mortgages.
  
• The minimum income requirement of £20k no longer applies to any of the new income multiples.
  
• In addition, income multiples of 5 x Single, 4.5 x Joint (or 5 + 1) apply on specific Standard 5 year fixed rate products, available on a minimum loan of £150,000.
  
• For Standard mortgages, the maximum loan has been increased to £300,000 at the product maximum of 95% LTV. Previously the maximum loan size at this LTV was £250,000.
  
• For 1st Start Mortgages, the maximum loan has been increased to £350,000 at the product maximum LTV of 100%. Previously the maximum loan size at this LTV was £250,000.
  
• For Self Cert mortgages, the property criteria has been extended to include ex-local authority houses. However, ex-local authority flats remain excluded.

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• buy to let mortgages
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• self certification mortgage