Mortgage with one UK salary and one Irish?

[ChartSpring]

Husband and I moved to Ireland from the UK about 4 months ago. He has an Irish job, earning in Euros. I still work remotely for my current UK employer, earnings in GBP. Has anyone successfully obtained a joint Irish mortgage under these circumstances? We will have a substantial deposit from the sale of our UK home so would only need to borrow approx half of the Irish property value.

 

[Horatio]

Yes, I had a similar situation.

In our experience the mortgage provider added a 25% loading on top of the overseas earnings. What does this mean?

Lets say you earn GBP100k per annum = EUR~117k.
When calaculating your affordability capacity the bank will reduce the EUR117k by 25% so they will consider your earnings as approx ~EUR87.75k.

Your bank may use a different % but that was my experience.

Regarding only needing to borrow half of the Irish property value I would take a look at the interest rate on offer, if it is favourable you may consider borrowing as much as you can for as long as you can & put your capital to work elsewhere potentially earning more than the mortgage interest charges.

I got absolutely slated on here previously for recommmending similar but I stand by it & it's what I'd do if the circumstances are right.
Best of luck.

 

[time to plan]

Yes, I had a similar situation.

In our experience the mortgage provider added a 25% loading on top of the overseas earnings. What does this mean?

Lets say you earn GBP100k per annum = EUR~117k.
When calaculating your affordability capacity the bank will reduce the EUR117k by 25% so they will consider your earnings as approx ~EUR87.75k.

Your bank may use a different % but that was my experience.

Regarding only needing to borrow half of the Irish property value I would take a look at the interest rate on offer, if it is favourable you may consider borrowing as much as you can for as long as you can & put your capital to work elsewhere potentially earning more than the mortgage interest charges.

I got absolutely slated on here previously for recommmending similar but I stand by it & it's what I'd do if the circumstances are right.
Best of luck.

That looks like bad advice at current interest rates. I have a 1.95% fix so am happy with having savings with a better return even allowing for tax, rather than overpaying mortgage. But at current rates, it seems a bizarre choice... unless you are investing via a pension.

 

[Oriel27]

Husband and I moved to Ireland from the UK about 4 months ago. He has an Irish job, earning in Euros. I still work remotely for my current UK employer, earnings in GBP. Has anyone successfully obtained a joint Irish mortgage under these circumstances? We will have a substantial deposit from the sale of our UK home so would only need to borrow approx half of the Irish property value.

yes, i got a mortgage in the south with both myself and the wife working in the north.

thats the problem with partition in this country, physically there is no border, but when it comes to finances, tax, vat, health system, there definitely is.

basically we got a builders mortgage to build a house literally 2 miles into the south. Only Haven would give us a mortgage. no other bank would entertain us.
we done it all thru a broker. He had serious amount of work to do. but it paid off.

 

[Mooneys]

Husband and I moved to Ireland from the UK about 4 months ago. He has an Irish job, earning in Euros. I still work remotely for my current UK employer, earnings in GBP. Has anyone successfully obtained a joint Irish mortgage under these circumstances? We will have a substantial deposit from the sale of our UK home so would only need to borrow approx half of the Irish property value.

Hi, I was wondering if you managed to secure a mortgage since your original post? My husband and I are in the exact same situation and would really appreciate any insight/tips! We have yet to decide whether to sell our London property to shore up a decent chunk of change as deposit for our Irish property but we have the added complication of me waiting on my UK citizenship which will likely take another few months to come through.

 

[Mooneys]

Yes, I had a similar situation.

In our experience the mortgage provider added a 25% loading on top of the overseas earnings. What does this mean?

Lets say you earn GBP100k per annum = EUR~117k.
When calaculating your affordability capacity the bank will reduce the EUR117k by 25% so they will consider your earnings as approx ~EUR87.75k.

Your bank may use a different % but that was my experience.

Regarding only needing to borrow half of the Irish property value I would take a look at the interest rate on offer, if it is favourable you may consider borrowing as much as you can for as long as you can & put your capital to work elsewhere potentially earning more than the mortgage interest charges.

I got absolutely slated on here previously for recommmending similar but I stand by it & it's what I'd do if the circumstances are right.
Best of luck.

Hi, can I ask which bank you got the joint mortgage from? We are trying to expedite the process to set me up with an Irish bank account whilst still in the U.K., husband is already in Dublin and earning in Euros, before we relocate in August. It would be really helpful if you can share some highlights/tips as we are not at all keen on splashing out on ludicrous rentals for an extended period. Cheers!