ICS has €200m for buy-to-let mortgages

ICS Mortgages, owned by mortgage lender Dilosk, said it is making €200m available for the buy-to-let market - while not ruling out moving into the residential market in the future.

Dilosk, which acquired ICS Mortgages from Bank of Ireland in 2014, said its new buy-to-let mortgage with a 10-year interest only option was now available nationwide. It will be available to both individuals and companies and Dilosk said there would be €200m in new lending to back it up.

Dilosk chief executive Fergal McGrath told the Irish Examiner it was targeting buy-to-let for now and that it was aiming to be the top lender in this area by 2020.

He added: “We are taking it one step at a time and we’ve targeted this niche but we would not rule out family home mortgages in the future.”

ICS will offer a 10-year interest only option as well as a 20-year capital and repayment option, with loans up to 70% loan-to-value. It will offer loans ranging from a minimum of €40,000 to a maximum of €1.25m.

Mr McGrath said: “It will appeal to both established property investors with existing properties, those looking to refinance and expand their portfolios, as well as those wishing to buy their first buy-to-let property.

"There is significant demand in the market for a new competitive buy-to-let mortgage proposition to cater for the increasing demand for good quality rental accommodation in Ireland.”

Dilosk initially entered the Irish mortgage market in 2014 when it bought the ICS brand and a portfolio of €223m of mortgages from Bank of Ireland.