Irish house mortgage from foreign bank

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cronley

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Irish borrowers are likely to be paying higher than normal interest rates on mortgages for the next 10 years, because irish banks will be charging higher margin to recoup the losses they have suffered due to the property bust. Does anyone know if there are any non-irish eurozone banks, that did not suffer property losses, and who would give mortgage on irish residential house at normal lower rate than irish banks.
 
great question Cronley, how about natoinwide uk (Ireland)?

I suspect there may be a trend in this area when the housing market does start to pick up, I don't see why it can't be done. Banks outside eurozone can give mortgages to Irish people for irish property.
 
cronley said:
Does anyone know if there are any non-irish eurozone banks, that did not suffer property losses, and who would give mortgage on irish residential house at normal lower rate than irish banks.
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There are none.
 
Horatio
I rang Nationwide UK Irl. They dont do mortgages in Ireland, & their UK parent only do mortgages to UK residents on property in the UK.
 
I wouldn't give up at that, there simply must be non irish eurozone banks that will give competitive mortgages within the eurozone.
 
Horatio said:
I wouldn't give up at that, there simply must be non irish eurozone banks that will give competitive mortgages within the eurozone.
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Why?

Mortgages are not that profitable. The margin is not huge by any means.

The Irish property market is a basket case. British lenders have left these shores, why would a European bank want to get involved?

Plus our rates are not that uncompetitive and there are no arrangement fees like in the UK. I should probably whisper this but you would be looking at paying at least GBP 1000 to even take out a mortgage with many UK lenders, more if you want to fix (eg GBP 1995 for a 2 year fixed with the Eurozone bank Santander)

In order for the Irish banks to lend, interest rates must rise, otherwise the banks can get a better/safer rate of return elsewhere.
 
Horatio said:
Europe is huge with thousands of banks, I find it impossible to believe that none would approve a mortgage in Ireland, that's why.
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That is a very naive view of the world!

As has been explained, it is simply not a realistic business proposition. As Norfbank says:

"The Irish property market is a basket case. British lenders have left these shores, why would a European bank want to get involved?"

mf
 
As well as the financial aspect, there is also the legal aspect. Foreign banks don't know how the Irish market works in terms of title, conveyancing etc., and wouldn't spend the time & money hiring the legal expertise for a few small loans.
Also, I'm not sure how competitive they are. Looking at SocGen in France it looks like variable rates are 3.95% plus charges (goes to 4.4% then I think), plus 'frais de dossier' or a contract charge of €900. Don't see mention of LTV, but in France I think they go with 90% or less.
https://particuliers.societegenerale.fr/emprunter/prets_immobiliers.html
 
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