Buy to Let Mortgages in Ireland

I am often asked which banks are giving the best Buy to Let mortgage in Ireland at the moment. Unlike in the UK which has a number of Buy to Let Mortgage providers, the Irish mortgage market for Buy to Lets are pretty slim. Here we’ll look at what is currently on offer and which options may be the most suitable for your needs.

Property owned in Company or Pension

If you own property through a company or pension, the options can be quite limited. ICS Mortgages are probably the cheapest option. Depending on location they will loan up to 70% Loan to Value (LTV). Other options for a company-owned property are commercial lenders such as Capital Flow, Bolt, First Citizen, Novellus and other family offices in Ireland.

Property owned in Personal Name

If you own property in your personal name then you have 5 providers – The Pillar Banks being AIB, Bank of Ireland and PTSB as well as Finance Ireland and ICS Mortgages.

Whilst the pillar banks advertise Buy to Let Mortgages on their website, at present they do not seem to have an appetite for them. Finance Ireland & ICS Mortgages on the other hand appear to be aggressively going after this market. Unfortunately at the time of writing this article, neither Finance Ireland nor ICS Mortgages offer fixed rates – which is a big risk in today’s climate of increasing interest rates.  

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Development Finance

Commercial lenders such as Capital Flow, Bolt, First Citizen, Novellus and other family offices in Ireland are generally more expensive to arrange. They usually have a high entry fee and exit fee and so they are most suitable to projects that require significant development. Why significant development? Well, significant development is by its nature riskier but equally more potentially rewarding so this will cover the cost of these finance providers. It’s important to note that a lot of the banks mentioned (ICS, Finance Ireland and the pillar banks) are not interested in development finance so these commercial providers may be you’re only option.

Crowd Funding

This is an interesting space that Ireland has been slow to adopt when compared to the UK market. There seems to be only 1 company in this space at the moment in Ireland, Property Bridges. They are the middle-man between the private investor and the property developer. Again, it seems that this is short term development finance and possibly only available for larger developers whose exit strategy is to sell once development is complete.

I would  love to see some more crowd-funding coming into this market especially for the smaller single property market, i.e. where private investors can pick their preferred property investment or investor thus facilitating a long term relationship – let’s watch this space!

Private Investors

This is my preferred option for short term finance (1-5years). There are a lot of individuals out there with large sums of money just sitting in the bank earning little or no interest. In times of high inflation, the true value of this money is diminishing every day it just sits in the bank.

These people may be unaware that there are professional property investors who are willing to pay very attractive interest rates (high returns) and simultaneously provide full security in the property (minimised risk).

Why do I prefer this option? Simply put, it creates a win-win for both the person with the cash and the property investor. Essentially the private investor is making their money work for them whilst they sleep comfortably knowing that the capital is secure in property but not having the hassle of being a landlord. Equally the property investor is using this money to create much needed housing for the rental market and making a profit on the rental income.

This arrangement also dilutes the control the very few banks hold over the whole mortgage market. I mentioned earlier in this article that in Ireland, we have very few retail banks. This is an alternative solution that I feel will gradually get more traction as people & families can take home the profit rather than a few corporate banks.     

I must make it clear however, it is important that the private investor trusts the property investor before they make any decisions. They must appoint a solicitor to protect their interests and they must make themselves aware of all of the risks that are involved. As with any failed investment, this arrangement can be costly in terms of money, time and headspace to rectify if things go wrong.


Lisa O'Reilly LOR Property Solutions providing alternative investment opportunities

LISa O'Reilly - Chartered Accountant, Property Investor & Trainer

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