Mortgage assessment, foreign held investment property

C

Chewbacca

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Hello

I suspect I know the answer but never having applied for a mortgage here. I have foreign investment property, when applying for a mortgage are foreign rental assets details and consideration taking into the equation from either an additional income source perspective or as additional debt (even though LTV is circa 55/60%). Mainly held in personal name though thinking of transferring into a limited company.
 
I believe that the debt on existing mortgaged properties will not be deducted from how much you can borrow (3.5 x salary) to purchase a PPR. It will be treated under affordability criteria similar to how a car loan or childcare fees are considered and this may impact the amoount the bank will lend.

When it comes to rental income, I believe they stress the value by 20-25% i.e. 1,000 rent is treated as 800 and they use that figure to assess affordability against debt payments.
 
Dublin bay got it about right I'd say.
Consider if the property has increased in value and as such hold greater equity and lower ltv. Might be worth considering a valuation before you pull the trigger with the banks here.

Have you looked at seeking a mortgage for the Irish property with your UK bank? No idea on rates or if you can get a EUR denominated mortgage but sure take a look, it'll cost you next to nothing to explore the option.

Flipside of that is that you expose your intent on taking on a second property to the UK bank which they may not like and feel your affordability has become unacceptable.

Two sides etc...
 
Thanks both , I was hoping though not expecting that kind of response so essentially foreign assets discounted and assessed on Irish employed income, downside is Irish multiples are dire. I'm thinking to migrate to co/refinance UK properties as probably raise more via financing in UK on an individual / portfolio basis then put those funds with mortgage based on employed income . Irish multiple 3.5 v max 5 times in UK is something else
 
Yep that's an option but keep you're fx exposure in mind. If you're earning in Euro and paying 2 mortgages in GBP or vice versa.

GBP is relatively cheap today but...
 
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