Getting a mortgage from overseas

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?
 
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%.
 
Yes agree with above post. As a non resident you would not qualify for a mortgage with a RoI bank.
 
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.".
 
44brendan said:
Yes agree with above post. As a non resident you would not qualify for a mortgage with a RoI bank.
Click to expand...

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.
 
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.
 
You must log in or register to reply here.
Back
Top