Mortgaging ahead of property purchase

[MidlandsBase]

Mortgaging ahead of property purchase abroad

I have looked at some properties abroad with a view to purchase. The average type of price I am looking at remortgaging is €120000.

My question is will the bank allow a remortgage if I do not have a firm property in mind abroad? And what follow - up documentation would they require when I do purchase the property? If deals fall through, etc and I move on to look another property are the Bank too concerned what's beem done with the money as long as the repayments are being met?

 

[Pexus1976]

1. First of all find out what loan amount you qualify for. Then you know what you can and cant afford.
2. Before they release the funds to purchase the property they will require:

• 3 months up to date current account statments
• Photo ID
• Utility Bill
• Salary cert from employer and 3 most recent payslips
• Valuation report on the property

 

[MidlandsBase]

Pexus, thanks for the reply.

I have remortgaged with the bank before so I just needed my pay slips in that regard.

However, your last point in relation to the valuation report is exactly the issue I was enquirying about. I do not have any specific property in mind - I know the figure which I require to buy in the area and basically want, if you like, a pre-approved mortgage to purchase the property. Colleagues of mine have purchased abroad but were not asked by the bank they were with to furnish details on the property - they remortgaged and then using the cash they had took their time in looking for the best property. As they had the cash lodged in their bank a/c they were able to make a quick purchase.

 

[Sarah W]

It's a valuation of your home that's required - not the one you are buying abroad. As long as you have sufficient income and equity there shouldn't be a problem with raising funds to buy another property. Do shop around though as a number of lenders are offering fees free remortgages.

Sarah

www.rea.ie