Residential Buy to Let Mortgage from AIB

AIB offer a range of mortgage deals, including residential buy to let mortgage offers that should suit anybody looking for a loan to purchase a property with a view to renting it out. There are enough legal implications connected with renting out your property without you having to worry about the mortgage situation, and AIB can make the entire purchasing process run smoothly with a mortgage deal put together specifically for future rental properties.

People buy to let for a number of different reasons, and AIB offer finance to help them to do so at the lowest possible cost. This is particularly true in an economic climate where house prices are low, and many cannot afford to maintain their mortgage repayments. A reasonable investment can secure a property well below what its market value will be in a few years time. Although the purchase is made as an investment in a projected future profit, it makes sense to let the property meantime to recover any refurbishment carried out.

Others who buy to let already have a property development business, and would generally buy to develop the property and then resell. However, because foreclosures have reached record levels and repossession sales are offering houses at knock-down prices, such developers are finding it difficult to realize their investments, and so let the properties for a period until prices recover.

Others simply buy to rent the property period, because that is their business: procuring properties and letting them out to provide a continual income. Whatever your reason is, the normally attractive residential mortgage packages offered by AIB to customers are not applicable when buying to let. However, AIB offer more attractive terms than most other banks, and are competitive in every way in this particular mortgage market.

Although the profit margins are currently lower than they have been, the tax relief for investors in property enables it to retain its popularity. Even with the slight slump in house prices, letting is still the only option available to many young couples and buying to let has increased significantly in Ireland over the past year or two, and it is still possible to make good profits in spite of the recent reduction in margins between letting and purchase prices.

You will find property easier to let in student centres such as Cork, Galway, Dublin and Limerick amongst others, and purchasing property to let close to recent improvements in transportation is always intelligent. Furthermore, if you intend to purchase several properties over time you would be advised to use a letting agency to find your tenants rather than advertise for them yourself.

A residential buy to let mortgage from AIB offers the fixed rate of interest that you should be seeking.

They are very competitive with a 2-year fixed rate of 4.14%. Slightly higher than for owner occupiers, but a very good rate for properties intended to let. The interest rate charged for such loans is very important, because your monthly rental charges have to be more than the monthly repayments or you will lose money. Rent, however, is controlled by market forces and not the interest rates you pay, and that is where AIB can help.

The finance offered by AIB for such house purchases is also very good, and while rental properties will not get the 92% finance that other properties will, 85% is still a good deal, meaning that you only have to find 150 euros for every 1000 borrowed. Not only that, but the higher the deposit you pay, the lower will be your repayments.

However, it is with the repayment terms that the Allied Irish Banks excel, offering you up to 5 years paying interest only. That means that you will be repaying less each month during the critical years after purchasing your property, when the rent is paying off the investment that you have made in purchasing and refurbishing the property. Interest only deals are perfect when buying to let, and what AIB offer is the ideal package for landlords and prospective landlords.

You will also be offered a repayment period of up to 25 years where appropriate, although many that buy to let tend to repay the mortgage over a shorter time frame so as to minimize their interest payments. AIB can also offer you insurance on your property, specifically designed to your investment needs, and professional consultation on the best life assurance deal for you.

There is more to purchasing properties to let than simply arranging the mortgage, and with a residential buy to let mortgage from AIB you get the real McCoy.