Irish mortgage for UK property

R

realtb

Guest
Hello,
I am working in the UK and am about to buy a house. As interest rates in Ireland are lower than in the UK, it there any reason why I can't borrow from an Irish lender at a lower rate?
I have thought of fluctuating exchange rates as a pitfall, but is there anything else?

Thanks!
 
I always thought (but this may be an unreasonable assumption) that a bank/lending institution could only lend on property in their own jurisdiction and territory. For the duration of the mortgage the property belongs to the lender. Anecdotal experience is of friends who 'sold up' and retired to Cyprus and France and in those situations transferred their assets into Cypriot and French banks respectively, through which the purchase/mortgage of their properties abroad were transacted. Perhaps someone who works within the mortgage sector will respond. If it is possible to borrow in a country with a lower interest-rate this might become very popular!
 
some Irish banks do offer mortgages on UK properties. IIB for example. Fluctuating exchange rates is part of the problem Suggest you might read up on an economic theory called Purchasing Power Parity. Will explain why it shouldnt work!
 
As far as I know, any of the Irish banks (including IIB) that offer to lend for a UK property do so in Sterling. Last time I looked, they also charge a nice margin for themselves for the convenience of dealing with an Irish bank, by comparison with the UK High Street banks.



I don't think you can get a Euro mortgage for a property in the UK. As Marie said, it's complicated for an Irish bank to arrange to sell a property outside the jurisdiction, if you default on the loan.

Regards,

Liam D. Ferguson

www.ferga.com
 
In addition to Liam's comments on the currency exchange difficulties you may or may not be aware of the general situation. The property market has peaked and 'gone over' into stagnation in many parts of the UK with period from going to market to sale extending to months/years. However sellers don't appear too willing to reduce prices to offload, as the myth of huge profits in property hasn't yet dissipated. Overall it is in my view (in most places/cases - obviously there are exceptions proving the rule!) not an auspicious time to buy property here.
 
You must log in or register to reply here.
Back
Top