# Getting a mortgage from overseas



## AussiePhil (20 Feb 2012)

Hello there,

I am an Irish expat who has been living in Australia for the past 7 years.

The current favourable exchange rate and depressed market in Ireland has led me to think about buying an investment property in Dublin.

I was hoping for insight on whether the banks are lending to people such as myself these days?

My circumstances:
Euro equivalent salary - 150k
1 bedroom property in Ireland - bought in 2003, current rental covers mortgage. Slight positive equity (maybe 10k).
2 properties in Australia - details available if relevant

Given the low interest rate in Europe, my preference would be for an Irish mortgage. I would probably need a loan of approx 150k, which would be 75% of the purchase price.

Any advice is welcomed.

Phil


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## goingforgold (20 Feb 2012)

Well in order to get advice on whether it's a good idea to buy an investment property we would need some more information, ie do you have large mortgages in Australie, are you in negative equity...do you have a lot of savings?


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## 44brendan (20 Feb 2012)

If your salary is from a foreign source you are unlikely to qualify for a loan here from any of the main banks in the current banking climate.


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## Bronte (27 Feb 2012)

44brendan said:


> If your salary is from a foreign source you are unlikely to qualify for a loan here from any of the main banks in the current banking climate.


 
Why?


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## LDFerguson (27 Feb 2012)

Quite a few reasons: - 


In the event of a default, it's easier for a non-resident to "disappear".
Not always easy for the lender to establish how secure the employment is, unless they applicant happens to be working for a globally-known multi-national.
Although the lender always has recourse to repossessing and selling the property, no lender really wants to do this, especially not in a slow market with declining values.
We've done some mortgages for investors living in the UK and buying property here but go further afield and it gets harder.


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## Bronte (27 Feb 2012)

Strange I never had a problem getting a mortgage and I live overseas.  But maybe times have changed.


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## LDFerguson (27 Feb 2012)

In the good ol' / bad ol' days of easy credit, it wasn't as big a deal as it is now.


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## Apollo (7 Apr 2012)

Lenders will factor non resident income when assessing a mortgage application..the percentage differs between each lender but in general the higher the % of non resident they allow when underwriting an application the lower the ltv % they will offer and vice versa..


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## Byrneand (22 Apr 2012)

Bump: Has anyone heard of an expat getting a mortgage for an Irish property with foreign derived income?

I am potentially looking to purchase and work for a multi-national that would be well known in Ireland.


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## LDFerguson (10 May 2012)

Just to update this thread, we've recently managed to get approval for a UK client buying an investment property in Ireland.  Three of the factors that went in its favour were: - 


UK is not too far from Ireland.
LTV is low.
Rental income covers mortgage payments with excess to spare.
So it's not impossible in every circumstance, but it's still difficult.


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## fonda (23 May 2012)

I'm in similar circumstances.

Live in the UAE, earning about 50K euro a year all of which is disposable as all my housing car etc is paid for. 

Also debt free at the moment, this will be my first property, looking at buy to let investment due to the lack of pension / savings options in the middle east.

Looking at borrowing 100k and putting up about 30-40k myself for an apartment. Rent for this apartment would cover the mortgage with some left over. I have already spoken to a friend who is an estate agent and she said rental demand is good in the area Im looking.

Would banks not touch this? or would I better investing elsewhere.


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## LDFerguson (23 May 2012)

Obtaining a mortgage from the UAE can be difficult due to its distace from Ireland.  


Are you working for a multi-national company that would be known in Ireland?
Could you bring the LTV back to around 70%?
What connections with Ireland can you show?


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## fonda (23 May 2012)

No company would not be known in Ireland.
Yes probably could achieve 70%
Only connection to Ireland is parents living there and still have my Irish bank a/c open.


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## LDFerguson (23 May 2012)

fonda said:


> No company would not be known in Ireland.
> Yes probably could achieve 70%
> Only connection to Ireland is parents living there and still have my Irish bank a/c open.


 
I think it would be difficult one.  The perceived "flight risk" - that you could potentially disappear if things went wrong for you is an issue.


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## AnthonyX (5 Sep 2012)

Also looking to buy in Ireland

Am UK citizen working for UN in Kenya
Married to Irish citizen working as freelance consultant in Kenya
Own 3 rented properties, two in UK (in process of selling one) and one in Paris. Positive equity £200k + €280k
Available cash deposit £90k plus £60k from imminent uk sale
Price of prospective Irish property €400k to €500k

Can I get a mortgage anywhere?


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## LDFerguson (8 Sep 2012)

AnthonyX said:


> Also looking to buy in Ireland
> 
> Am UK citizen working for UN in Kenya
> Married to Irish citizen working as freelance consultant in Kenya
> ...


 
Mortgages to non-residents are possible up to about 70%.  While you will have the required deposit, a huge amount will depend on your income and outgoings, e.g. earned incomes, mortgage repayments on all existing mortgages, total rental income, living expenses in Kenya.  Ideally a lender here will want to see that you have sufficient earned income to pay the new mortgage without reference to the prospective rental income.


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## sceach (14 Jul 2013)

Hello, this thread is relevant to my interests.
I am currently living in UAE with my wife and family. I am on a three year international assignment from my Irish (multinational) company. 
We have a home in Ireland in negative equity but have no plans to sell and the mortgage is always paid with no issues. We currently have relatives house sitting. Mortgage is approx. €1800 per month.
My salary is €120k (but pay taxes through Ireland) and my wife earns a good tax free salary here (about €50k). All our housing, transport, utility and schooling costs are paid here.
We are wondering if the bank will give us a second mortgage for a self-build in Ireland - maybe €150k. 
We would have approx. €150k to put towards it. We have no other debts apart from the mortgage in Dublin.
Thanks.


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## LDFerguson (15 Jul 2013)

When your three-year assignment is up, will you still be working for the same employer or will you need to find alternative employment?

Unlikely that you'll get approval for a self-build as a non-resident but you could probably get a mortgage to buy.


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## sceach (15 Jul 2013)

Thanks, yes I'll still be working for the same employer. We will probably wait until we go home to start the self build but it would be good to start looking at sites now, we have a few in mind. We travel home about 3-4 times per year.


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## LDFerguson (15 Jul 2013)

Given that you're taxed through Ireland and are looking for a small multiple of salary, you should be okay on the affordability side to borrow €150,000.  I'm assuming that your salary will still be the same when your three-year assignment is up - that's one of the first questions a lender will ask. 

But as I said, I reckon you'll struggle to get approval for a self-build because you're non-resident.


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## sceach (15 Jul 2013)

Thanks yes, salary will be at least the same, likely higher.


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## clairedel (13 Nov 2013)

Hi there,

I'm a UK citizen, both my parents are Irish, and they have built a house where my Dad is from. We go over there quite often and I've been looking to purchase a house in the town where my Mum is from. It needs total renovation, therefore the asking price is very low at €35,000. I want to buy it to use as a holiday home as we go there frequently to visit family and friends. I have a deposit of €5,000 which is roughly 15% and I'm on a salary equivalent to €55,000.
What are the chances of me obtaining a mortgage from an Irish bank?


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## ronaldo (13 Nov 2013)

How's your UK credit history and do you have any available credit there, i.e. overdrafts and credit cards?

In general, in the UK, you can apply for up to 50% of your salary in credit meaning that, on €55,000, you should be able to get a loan of €27,500 (assuming you have no credit cards and overdrafts).

If you have credit cards and overdrafts, reduce the €27,500 by the total limits of these.

With a €27,500 loan in the UK and a €5,000 savings pot, a €32,500 bid might seal the deal with a house with an asking price of €35,000.

This would probably be an easier route than an Irish mortgage and the rates on personal loans in the UK are very competitive, starting as low as 4.8%.


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## 44brendan (13 Nov 2013)

Yes agree with above post. As a non resident you would not qualify for a mortgage with a RoI bank.


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## ronaldo (13 Nov 2013)

Just to add, another option is borrowing more on your UK mortgage to purchase the Irish property. 

For example, some banks have conditions such as "Where the loan is for a foreign property against which the bank cannot take security, the LTV should be no greater than 80% of the principle residence valuation.".


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## Bronte (14 Nov 2013)

44brendan said:


> Yes agree with above post. As a non resident you would not qualify for a mortgage with a RoI bank.


 
Would it help posters in the UK market to have a bank account in the UK with AIB or BofI, don't both of those operate there, and they would be well used to dealing with Irish UK residents wishing to purchase in Ireland.


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## sceach (11 Jun 2014)

Duplicate post


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## sceach (21 Apr 2015)

Hello,
I thought it would be good to come back and update this thread about how we got approved for a mortgage as a non-resident in case others find it helpful.
Note that this was for a self-build. Mortgage to buy might be more straightforward.
General observations
·  First of all the process application took a lot longer than initially expected so give yourself plenty of time, for us the process took two months.
·  I was dealing directly with the bank, some colleagues have obtained mortgages from abroad through a broker and they found that approach quite easy.
·  Underwriting process was very detailed, just when we thought we had provided everything underwriters came back with additional requirements.
·  As a full non-resident with no strong ties to Ireland I do not believe we would have been successful.
Things that I believe helped our application:
·  I am technically still employed by an Irish company (on long term assignment) and my salary is still paid into Irish bank account.
·  We had a long history of paying savings into Irish bank account.
·  We have existing business with the bank.
·  Employment in Ireland confirmed upon our return.
·  LTV is low and we had strong contingency funds. Bank wanted 15% own contingency funds available.
Advice to anybody considering applying:
·  Start sending monthly savings back to Irish bank account well in advance of when you are thinking of applying.
·  Don’t wait until you find a place you are interested in before applying – process is lengthy and you may miss out.
If anybody would like to ask any questions feel free to send a pm.


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