Two of Ireland’s banks are betting that property prices are going to rise and are releasing new mortgage products aimed at tempting investors back into the property market.
Permanent TSB are targeting Irish emigrants who earn over €100,000 and are looking to buy a property in Ireland.
The bank is offering a maximum loan to value of 60% and will also offer the product to British citizens who wish to invest in Irish residential property.
Ger Mitchell, head of mortgages at Permanent TSB, said the bank was responding to strong customer demand for buy-to-let mortgages.
“Permanent TSB has returned to being a competitor in the mortgage lending market in 2013,” he said.
“We have been very successful in lending responsibly to owner-occupiers this year and we are building on this success with new market-leading products for the buy-to-let market in response to strong customer demand.”
Bank of Ireland believes there is a group of people who have been waiting to purchase investment properties, and have launched five-year interest-only mortgage to tempt investors.
Aine McCleary, head of mortgages at Bank of Ireland, said that people are looking to take advantage of low property prices.
‘We are seeing increasing mortgage activity, particularly among first-time buyers and movers, but we believe there is also a cohort of people who have funds to invest and who, with the right mortgage offering, would like to purchase buy to let properties and take advantage of low property prices and low interest rates,” said Ms McCleary.
Goodbody analyst Eamonn Hughes said the banks were expressing confidence in Irish house prices.
“The moves by PTSB and BoI probably hint at growing comfort over collateral values in the housing market,” said Mr Hughes.
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