Obtaining a mortgage from a bank within EU

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petitverdot

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Just a thought but has anyone ever tried applying to a bank outside of Ireland but within the EU for mortgage approval. If they have rates as low as 2% , the same euro currency, then why are we not? Or are there some legality issues why we don't?

According to the link below:
You can in principle also obtain a mortgage loan from lenders based in other EU countries; however, your country of residence, where you work or the location of the property may influence how the lender assesses your application.

http://europa.eu/youreurope/citizen...-products-and-services/mortgages/index_en.htm
 
Whilst EU law may allow a foreign bank to give you a mortgage, it doesn't oblige them to - a bank with no business here would probably regard it as too risky (considering how difficult it is to repossess etc).

Let us know how you get on.
 
You won't be able to manage that. Too many issues for foreign banks to be able to offer mortgages in Ireland. Langage and legal issues in particular.
 
Too hard to repossess a house here. No one with any sense would come near us.

Incredible country we have. Don't pay your mortgage but keep your house.

Downside is we have to pay a lot more in interest to cover people.
 
Chris2014 said:
Too hard to repossess a house here. No one with any sense would come near us.

Incredible country we have. Don't pay your mortgage but keep your house.

Downside is we have to pay a lot more in interest to cover people.
Click to expand...

Not for BTL properties. You miss two repayments, a receiver is appointed and house is gone. It is relatively easy to repossess BTLs here.

I think a lot of people would be ok with quicker repossession if mortgages were non-recourse ie if your bank repossesses your home, they can't go after you for the residual debts.

IMO banks are exploiting the lack of competition and are charging high interest rates as a result. Look at BTLs, where you can repo them so easily. Yet banks are still charging 5% for BTL mortgages with an LTV of less than 50%. There is basically no risk with that loan, but the banks are still pricing it as if there is.
 
I guess the BTL type mortgages are seen as more of a business investment. The replies make sense, with repossession so difficult it's not worth the risk for EU banks to consider us. I wonder would Eire slip by them ;)
 
Aware of a few people who have done this recently with German and French banks, but only when the mortgage is cross-secured on a property (perhaps owned by a relative) in the bank's home country.
 
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