Overseas Mortgage

A relative of mine has a property in Australia where interest rates are over 7% and was trying to remortgage it at Irish rates of interest (he lives in Ireland). All the banks he spoke to would only do it if he offered his Irish house as the security. This would not suit him because he wants to keep his overseas investment and his home mortgage separate.

Are there any banks or finance houses prepared to refinance a foreign property with the property overseas as the security.

Any help or suggestions would be appreciated....

He knows there is a currency risk but with interest rates here of 3% as against over 7% in Australia he would like to at least consider the option but cannot get any bank to even consider the possibility.

I don't think he'll find any Irish or European bank willing to take on an Australian property as security, as they would have to be conversant with Australian property values along with the legal and practical local knowledge required to successfully sell the property in the event of a default.

All the banks he spoke to would only do it if he offered his Irish house as the security. This would not suit him because he wants to keep his overseas investment and his home mortgage separate.

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Why not? If he runs into trouble paying the mortgage, he can simply sell the Australian property to clear down the mortgage to the level it was.

Liam D Ferguson
www.ferga.com

I think its already been said:

Irish property for equity release.. Euros and euro rates;
Translate to Aussie $ at the rate today.
If he has income in euro to pay the loan then he has protection. If he has to fund repayments from Oz income then there is currency risk.

So he either does it or he doesn't.