KBC Have just announced that they are going to pull back on the loan to value (the amount they will finance on a mortgage) for ‘non urban’ properties, effectively all properties that are not in cities and towns. They have gone as far as defining this.
They are also not taking chances on higher end properties. We are of the opinion that non-apartment second hand homes are almost ‘the only’ market that is active and that at the higher end of the market the fallout will continue, this ties in with the KBC view – they are expressing that very concern by dropping LTV’s on loans over €400,000.
So the new situation is:
Home Purchaser – First Time Buyer or Mover
Maximum LTV for loans up to €400K or less
* Up to 90% for urban areas*
* Up to 80% for all other areas
Maximum LTV for loans over €400K
* Up to 80%
* “Urban” locations defined as towns/cities with population of >15,000 and population centres within Meath, Kildare, Wicklow with population of > 3,000 (all at Lender’s discretion
and subject to review from time to time.) These changes are effective immediately. For cases that are already underwritten or in the pipeline:
Loan Offered Cases: Existing loan offers must be accepted and drawn down in accordance with the terms and conditions of the offer letter.
Approval in Principle Cases (AIP’s): Existing Approvals in Principle must go to Loan Offer within 60 days of issue of the original Approval in Principle Letter. All Offers and Approvals in Principle that have expired will be underwritten using the new criteria.