Remortgaging Idea?

  • Thread starter lilliput2000
  • Start date
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lilliput2000

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Hi

I am a first time buyer looking to a buy a house for approximately 220000K (we have the deposit and money for furnishings and so on)

I also have a house abroad with a mortgage of 70K. This is a house we have bought with the intention of retiring or possibly moving to work there sometime in the future

What I am wondering is the following. Can i buy a house in Ireland and in a couple of years remortgage it to a value of 300K and combine both mortgages. Again, from my very rough calculations, this would save me close to 60K over the course of the 30 years that paying both mortages individually due to the much higher interest rate on the mortgage abroad.

My wife and I have a gross salary of about 80K and even if we both to lose our jobs in the morning, we would find employment again pretty quickly. We have no other debt and are pretty confident based on our current situation we can cover a mortage of up to 1300 euro quite easily.

Apologies if this sounds like madness or that I should no better for asking, I have tried to do my research online, but sometimes it is better just to throw it out there. I am not sure this is something I would do, but I am trying to look at different options for our financial future.

Thanks
 
What you suggest is only possible if the value of the Irish home you buy increases so much that by the time you want to roll the foreign property loan into it, the total loan doesn't exceed around 80% of the property value.

Let's say you owe €195,000 on your home in Ireland and €60,000 on your foreign property. Total €255,000. The value of your Irish property would need to be €318,000+ for any lender to consider such a re-mortgage.

In the current climate, you might be waiting a while before an Irish property worth €220,000 now gains around €100,000 in value.

Liam D. Ferguson
 
Also, OP, you need to be aware that you aren't a first time buyer if you already own a property abroad.
 
Great, thanks for clarifying that and saving me hours trawling through the internet! I am probably being quite dumb here about asking about this "Also, OP, you need to be aware that you aren't a first time buyer if you already own a property abroad." Does this mean I no longer qualify for mortage interest relief as a first time buyer if I buy a house in Ireland now.
 
Ah - I was talking about FTB stamp duty. I think (but am not 100% sure) that you would qualify for FTB TRS. It's bloody irritating that there are different definitions...

For e.g on Citizens' Information, they say:

"You are a first-time buyer for the purposes of mortgage interest relief if you are in the first 7 years of receiving the relief."

If you give Revenue a quick call they will be able to answer straight away I'm sure.
 

I moved from the UK to here and had this situation having owned a flat over there. I didn't qualify for FTB Stamp Duty, but I did qualify for FTB TRS. Hope this helps! I was pretty annoyed about it at the time, but I'm philosophical about it now. The TRS is a great benefit.
 
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