Home Loans

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Home Loans

• AIB Finance Ltd
• Gerry ORiordan

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Home Loans

• Product
• Requirements
• Criteria
• Systems

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Product Options

• Variable or Fixed Rate
• Annuity, Endowment or Pension
• Interest Only 3-5 Year Option (Investors)
• Maximum 35 Years (Owner Occupiers)
• 25 Years ( Investors)

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Finance Available

• 92 Residential
• 85 Residential Investment
• I0 Reduction for Tax Based Properties
• 75 LTV for Portfolios , Cross secured and
• Commercial Loans
• 60 Maximum Funding By Way Of Pension
• ( Balance on Annuity)

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General Requirement

• Covering Note / Letter Outlining Proposal
• Completed Application (Signed)
• Certificate of Income from Employer
• P 60 and Last 3 Payslips of Applicant
• Audited Accounts (Where Applicable)
• Certified Statement of Income (Rental Income
  Analysis Personal Income)
• Certified Statement of Affairs (Confirming Net
  Worth)
• Confirmation of Tax Affairs
• Mortgage, Bank and Savings statements ( Non AIB )

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Criteria The Basics

• Residential, Residential Investment Commercial
  Property
• Full Time, Consistent Employment or Proven track
  record in Business
• 
  
• Proven Repayment Capacity (Within
  Debt Service Ratio)

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DEBT SERVICE RATIO (DSR)

• Debt service ratio
• measures the proportion of after
  tax income required to service the
  proposed loan
• It is the monthly repayment expressed
  as a percentage of the borrowers income
• ( net of income tax and PRSI )

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DEBT SERVICE RATIO (DSR)

• Proposed repayments are calculated at an interest
  rate of 5.5
• Overtime to a maximum of 15 of salary may be
  included in calculating the above

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DEBT SERVICE RATIO

• First level income earners
• Single Applicant up to 25,000
• Dual Applicants up to 38,000
• D.S.R 30
• Second level income earners
• Graduated Table
• Single Applicant 35 to 45
• Dual Applicant 35 to 40
• Top level income earners
• Main income exceeding 65000
• Dual applicant 40 - 50
• Single applicant 45 - 50

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Professional Mortgage

• Term
• The term will be determined having regard to
  the normal retirement age of the applicant
  subject to a maximum term of 35 years.
• DSR
• Repayment capacity will be based on DSR but
  borrower will be eligible to be considered as
  being in the top earner category as per current
  mortgage policy (40 for married applicants/two
  individuals, or 45 for a single applicant).
• LTV
• Normal maximum up to 95 LTV. In exceptional
  cases an LTV up to 100 will be considered for
  applicants who comply with the DSR requirements
  outlined.

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Criteria In practice

• Lending decisions are based on
• Integrity of the Applicant
• Personal Profile
• Employment record
• Bank Relationship
• Credit Information

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Criteria Contd

• Applicants own stake
• Savings
• Inheritance or Gift
• Value of asset being financed as collateral
• Location
• Cost
  
• Condition

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Criteria Repayment Capacity

• Focus is on quality of income
• How long is employer in business
• Length of employment of applicant
• Future potential
• Applicant
• Employer

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Criteria Repayment Capacity

• Breakdown of remuneration package
• Basic
• Commission
• Performance related
• Savings or record of regular payments
• Credit Union
• Rent
• Policies

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Repayment CapacityInvestment property

• Statement of Affairs ( Certified)
• Full Property address of each
  property
• Date of purchase and purchase
  price
• Current value (P.V. if deemed
  appropriate).
• Tax Designation of each property
• Current Mortgage Balance

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Repayment CapacityInvestment property

• Statement of Income (Certified)
• Rental on each property.
• Current expenses and taxes
• Repayments on each property
• Supported By
• Mortgage and Bank Statements
• Case 5 income returns to Revenue
  Authorities
• Confirmation of tax clearance.

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Systems Service
Broker
Letter out
Application
Assessment
Advise Broker
Decision
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Four Decision Types

• Declined
• Reasons should be communicated
• Approved
• No further Conditions to apply
• Approval in Principle
• Confirmation of details set out in the
  application which are a matter of fact rather
  than that of a qualitative nature.
• Deferred
• Further information is required in order to
  assess the application.
• The supports or confirmation of details
  required are of a qualitative nature.
• Approval in Principle

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Systems Service
Solicitor
Legal Package
Legal Pack back
Letter
Cheque issue
Broker
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Systems Service
Solicitor
Legal Package
Legal Pack back
Letter
Cheque issue
Broker
Letter out
Application
Assessment
Advise Broker
Decision
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Requirement for cheque issue

• Signed letter of offer
  (Broker)
• Confirmation Fire policy (Broker)
• Original Life policy
  (Broker)
• Surveyors Report (second-hand) (Broker)
• Verification of customer I.D.
  (Criminal Justice Act 1994) (Broker)
  
• Legal package completed (Solicitor)

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Commercial Lending Requirement

• Proposal
• Project (Projections \ Cash Flow)
• Source and application of funds
• Background and profile
• Audited Accounts
• Statement of net worth (Individual)
• Tax clearance (Certified)
• Banking Facilities

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Sales Role

• Our strategy is to recruit intermediaries to a
  central unit.
• Communicate our customer proposition in terms of
  Product, Lending Criteria and Service Levels.
• Manage the Relationship between the Centre and
  the Intermediary Network

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The Teams

• Intermediaries
• Peter Barry
• Aileen Mooney
• David Lyons

• Lending
• Jim Lambkin
• John OShea
• David Haughan

Direct Lines Phone [phone]
Fax [phone]
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