Irish FTB Status if Property Bought in Spain

B

Bull

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A friend of mine has come to me with a query to which I'd appreciate some help from all/any AMM members.

My friends's father wishes to purchase a property in Spain but as he is 67 he can not get a bank to give him a mortgage even though he has an existing Sapinish property with substantial equity with which he would put up as security. To get around this problem he has suggested to my friend (his daughter) that he get her to put the mortgage/title in her name with his existing property acting as security.

She has asked me what effect this will have on her here in Ireland.

I can see two possible issues:

Will she lose her Irish FTB status?
As she will have a mortgage in her name will it lessen the size of mortgage she can get when she wants to buy her first home here in Ireland or becasue the loan will be with a Spanish bank will it not matter/not registered with irish bank's credit processes.

Any help/advice much appreciated.
 
She will lose her status as a first time buyer. It does not matter where the property is.

She has to declare her existing borrowing. While it may not show up on an Irish Credit Bureau check, lenders always ask for bank statements and he repayment will show up on that.

If the lender here knows about the borrowing in Spain, they will take it into account when deterining how much she can borrow here.

Dev
 
DevilsAd,

Thanks for your reply. Her father will be making repayments so I dont see how an Irish Bank will pick up on the fact that she has a spainish mortgage. As far as Im aware Irish banks can only access the ICB so she should be ok on this? Besides the mortgage is not really her's but here fathers - its just in her name so he can get the mortgage approval.
 
criminal conspiracy

It's pretty clear from your post that you're not bothered about the losing of FTB status per se, but rather attempting to figure out the chances of getting caught.

Please don't engage the contributors to this site in this. It's sordid and it's illegal.
 
Re: criminal conspiracy

EH!???

Im fully aware that she is likely to lose her FTB status. Thats not the issue. The issue is will she lose here ability to get a mortgage later in Ireland cause she's been a good daughter and helped out her old man.

Get off your high horse oysterman and dont insult people on this site with your criminal conspiracy theories. You need to get out a bit more if all you ever do is think people are trying to rip of the banks/revenue etc.
 
Re: criminal conspiracy

I dont see how an Irish Bank will pick up on the fact that she has a spainish mortgage
Click to expand...
Sounds like you're contemplating non-disclosure of material information - whether to a bank or to the Revenue I don't really care.

If you can live with your conscience that's great. Of course, the greater the incidence of lying in such circumstances the tighter and more intrusive the checking process is going to become for all of us in the future.
 
Buying in Spain

The issue is not only who is actually paying the mortgage; it's a factor, however, if the mortgage is in her name and her father defaults on the loan, the upkeep on the mortgage will rest on her shoulders. A lender won't care how likely or otherwise that scenaio is, they simply look at the cold facts.

Also, a lender always asks you if you are a first time buyer or not.

Dev.
 
Re: Buying in Spain

The daughter may also end up with a tax liability from any rental income from the property.
 
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