To whom it may concern,
In regards to your piece “Stopgap mortgages remain a bridge too far for Irish banks despite new ICS product” (Business, October 12th) you focused on the newly introduced bridging loan from ICS Mortgages. The article failed to address a primary deficit; the fact that this product holds no value for individuals looking to downsize their homes after their kids have moved out. This is because it doesn’t function as a short-term loan facility but as a strictly regulated mortgage product. As per the rules laid down by the Central Bank of Ireland, the amount that can be borrowed is confined to a multiple of four times the household income. For the majority falling under this category, their income will be a pension, hence this restriction.
This information is glaringly omitted from the promotional material on the ICS Mortgages website, which instead accords prominence to the maximum sum permissible as well as the 70% loan to value cap.
I’m speaking from personal experience as I had applied for this product and furnished all necessary financial documents inclusive of my home’s valuation. I was looking to borrow about half of the equity’s worth to purchase a less sizable property. Despite me presenting clear evidence of my capacity to repay the interest from personal funds, I was only accorded a miserly amount of four times my pension income.
As a result, this product does not cater to those who wish to avoid the excessive rent charges they would incur while trying to find a smaller property to purchase, after selling their existing one.
Yours Sincerely,
Graham Wilson,
Rathmines,
Dublin 6.