best rate for land loan

viztopia

Looking at borrowing money for a land loan with boi. They have quoted 5.74%. Anyone else get quoted any other rates recently?

sprouty

Aib have fund from 4.4%. Not sure what the criteria are though.
Best of luck with it,
Sprouty.

Insp. Harry Callahan

Try ACC, found them good. they were 2% margin above ecb interest rate, be less than 3% in total now

maxxuumman

sprouty wrote: »

Aib have fund from 4.4%. Not sure what the criteria are though.
Best of luck with it,
Sprouty.

Was tahking with aib during the week. I think the 4.4 is for new loans under 250k and for land loans over 20 yrs. Subject to a lot of security.

mf240

Are all interest rates quoted on the declining balance?
Also is there a facility to pay a bit extra off if you have it without being penalised.

Insp. Harry Callahan

mf240 wrote: »

Are all interest rates quoted on the declining balance?
Also is there a facility to pay a bit extra off if you have it without being penalised.[/Quote

The ACC is fixed at 2% rate above ecb rate, and is on the declining balance, can pay off extra no probs, no penalty

Farmer Pudsey

Try and borrow at a fixes percentage above the ECB or the interbank rate. If you borrow at a standard variable you can be at the mercy of the banks who can vary it when ever they wish. At least with the rate fixed above the ECB or interbank you are only at the mercy of the ECB. Look at the way the banks have treated their customers on mortgage's

viztopia

Met the bank manager. Feck me it was tough work. My after is helping me out a lot. Land cost €237k. Looking to borrow €100k. Father putting up his 231 acres as security with no borrowings on his side. You would think we were looking for half a million! Will try Aib but I don't think they will be any better.

milkprofit

Do not give that much security

dar31

viztopia wrote: »

Met the bank manager. Feck me it was tough work. My after is helping me out a lot. Land cost €237k. Looking to borrow €100k. Father putting up his 231 acres as security with no borrowings on his side. You would think we were looking for half a million! Will try Aib but I don't think they will be any better.

that is an unreal amount of security, you are only borrowing 42% of the value of the land, once the purchased land is against the loan, then there should be no need for more security, though they will look for a bit more, 10 ac should be enough to appease them. what is the smallest size folio your father holds?

they will make you jump through hoops till you are dizzy.

try some other banks, and use them off each other to secure a better deal and rate

Juniorhurler

Problem is the hoors don't want to lend you the money really. I bought a bit in early 2011 and I am scarred for life (or the next 15yrs anyway:D) from the experience of dealing with the banks. We wanted to borrow 60ish% of the value of the land, 43acs, and have two good secure paye jobs and still found it fierce hard to get the money off them.

viztopia

I think the 230 is one folio. They already have a lean on this on a bank overdraft of €60k which is rarley used. Crazy stuff indeed.
He was also looking for us to pay the banks legal fees involved and quoted a fee in the region of €1,800. I already have a price from a very reputable solicitor to deal with the purchase for €1,000 plus vat for their fees only which seems ok.Will have to try acc & Aib!

st1979

viztopia wrote: »

I think the 230 is one folio. They already have a lean on this on a bank overdraft of €60k which is rarley used. Crazy stuff indeed.
He was also looking for us to pay the banks legal fees involved and quoted a fee in the region of €1,800. I already have a price from a very reputable solicitor to deal with the purchase for €1,000 plus vat for their fees only which seems ok.Will have to try acc & Aib!

What sort of lean do they have. You really need to educate yourself on this or use a broker to do it. No way should u have to give anymore than the land your buying as security. Get your solicitors to make new folios. As in reality your getting a 4% loan to value if the 230 acres is worth 10k per acre. Another problem is your not probably looking for enough 100k is pretty small loan for the bank and your not dealing up in the higher sections of the bank.

bob charles

your buying a service, so demand what you want. If the land your purchasing isnt enough security its all a matter, considering your only borrowing 40% of the outlay. You will have to pay solicitor fees as the bank wnat their own independent guys:rolleyes:. Play hard ball, they really could do with some good business that your are offering them. You have a serious upper hand on them

maxxuumman

+1 on everything above. When you say that they have a lean on your fathers place. Do you mean they have the deeds? If so, another bank will bend over backwards for that kind of security. Get a quote from another bank, you will be amazed at the original banks attitude change. Your biggest problem is that the 100k may be too small a farm loan to negotiate a good deal.
You are very very much in the drivers seat here.

Bodacious

5.5% aib and they hold the deeds and only up to 70%of the land value.

would the likes of revenue ever see the information supplied on income /property in order to attain a loan!?

bob charles

Bodacious wrote: »

5.5% aib and they hold the deeds and only up to 70%of the land value.

would the likes of revenue ever see the information supplied on income /property in order to attain a loan!?

no, sure its a load of dreamt up stuff anyway

Bodacious

bob charles wrote: »

no, sure its a load of dreamt up stuff anyway

cheers bob,

never had to do it before in this country but afraid id paint too pretty a picture and end up in bother:)

bob charles

Bodacious wrote: »

cheers bob,

never had to do it before in this country but afraid id paint too pretty a picture and end up in bother:)

also include worst case scenarios in your projections. Banks love these as they just want to know there money is safe no matter how bad things come and it shows your realistic. So say if beef farming, show a drop of 10%,20%,30% in beef price and the effect it would have on your business. Remember your bank manager is a salesman and your the buyer of his services, its up to you to drive a hard bargain.