How to get mortgage for investment property in EU ?

D

darraghdog

Guest
Hi Folks,

I have spotted some opportunities in Germany where I would like to invest in a buy-to-let property. The property would cost total ~120K and I would be putting forward around 10 to 15% of this. I already have a mortgage open since a few months on a owner-occupied property here.

Does anybody know how to go about getting a mortgage - would a bank here let me take it, or would I need to go to Germany ?

Also can I get tax relief here for such an investment ?

Any info. would be appreciated !

Darragh.
 
Hi darragh,
I'm intent on moving to germany to live and shortly thereafter on buying a place in which to live for similar money. I don't think a bank here will give you a new mortgage as they have no way of obtaining security in it (to my knowledge). I was thinking of getting a to-up on my mortgage here when I'm gone and it's rented out. I know I won't be going to a german bank-they require 30% - 40% deposit I'm afraid, one of the reasons germans rent till they're like 40 (to save up!) and then only 42% buy their own homes. Their interest rates are also a fair bit higher than here (even though they have the same ECB rate but less competition as mortgages just aren't as popular there) so if you can release the equity in your own home it might be a way to go. I know UB offer top-ups on mortgages here to allow a foreign purchase.
 
Hi Murphaph,
Thanks for the info... btw, the banks over in germany don't require a large deposit at all, a friend of mine actually got a mortgage (~120K) with NO capital !! I had about 10% capital. You just need a reasonable credit rating, and as you mentioned - an income in Germany. One more point is that the German banks are far more open to negotiating than Irish banks. You need to go from bank to bank, and tell them what offer yougot from the bank down the road. I found the best Sparda bank, they should be in most towns as they are affiliated with Deutsche Bahn.
Darragh.
P.s. If you need any more info. send me a mail...
 
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