Buying investment property in UK through Sterling

M

Michael

Guest
Hello , I am Irish and am in the process of buying an investment property for 120000 STG on the Island of Jersey. I plan to take out the mortgage with an Irish Bank due to the Euro interest rates being lower than the UK. What is the least costly strategy to convert to Sterling? Do the banks in Ireland offer Sterling mortgages?

Thanks

Michael.
 
If they did offer Sterling mortgages, it would be at Sterling interest rates.

A bigger problem is that few if any Irish banks will offer a mortgage on foreign property. So unless you have other assets to offer as security, you may be better going with a UK bank, particularly if you anticipate rental income in Sterling.
 
Thanks Mugsgame, I have the assets and will be borrowing against my own home. My own mortgage is cleared. Do the Banks offer better conversion rates when converting a large sum of Euros to Sterling (in this case circa 175,000 EURO)?

As the rent will be in Sterling I presume I should open up a Sterling account and have it paid in there. Do BOI offer such a facility?
 
IIB Bank will give sterling loans to Irish residents, and can also open a sterling bank account for you (for collection of rent etc) Loan is in sterling, repayments in sterling, and interest rate is Bank of England rate. LTV's of up to 70% I think. This any help?
 
That helps thanks. If the LTV IIB offer is 70% will they give a 100% Sterling loan to cover the Investment property if I borrow against my own home?
 
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