Transferring mortgage to non-Irish bank

[Jim Dwyer]

In the spirit of no question is a stupid question, has anyone explored whether it would be possible to transfer a mortgage to a non-Irish owned bank?

With the PTSB upping their rates, and other Irish banks likely to follow, ECB rates due a rise later in the year, followed by more rate rises by Irish banks, I am wondering if there is another way. My BOI bank manager was very candid when I spoke to her on Friday indicating the Irish banks are under so much pressure they have no choice except to increase their rates to try and show a more attractive business to potential future investors. "It's a tightrope" between increasing revenue from mortgage customers to creating more defaulter's. She indicated that at the moment the % of mortgage holders in danger of defaulting is single digit. But my view this is only going to increase with the aggressive stance the banks are now taking to get their hands on greater returns from the hard-pressed consumer's. Ironic isn't it? Our increased taxes is going towards saving the banks which puts us under pressure to pay our mortgages, while the banks then increase the interest rate putting us under more pressure.

 

[RMCF]

I always believed that with the whole "Euro zone is a single market" thing, that we were supposed to be able to take out a mortgage or loan on one country for use in another.

Yet does anyone know a mortgage holder in Ireland who has the loan from another country? Don't think so.

 

[horusd]

I always believed that with the whole "Euro zone is a single market" thing, that we were supposed to be able to take out a mortgage or loan on one country for use in another.

Yet does anyone know a mortgage holder in Ireland who has the loan from another country? Don't think so.

I assume this has to do with legislation governing lending that may differ across the Union? Don't financial institutions require a licence to trade in each country, making the idea of the "single market" untenable?

 

[Greta]

Jim, I presume your question is really whether or not you can remortgage with an Irish branch of a non-Irish bank. That depends on your circumstances. If you are in negative equity, then the answer is no, you are stuck with your bank.

If you have positive equity in the house, how much in % terms? The higher LTV ration, the harder it is to get a mortgage. Also your income, outgoings, job security (very difficult if job not permanent), other borrowings etc.

 

[Jim Dwyer]

Greta , re question on whether + or - equity I am really not sure on that one. I am in process of drawing down on mortgage for a new build. It's about 40% drawn down at this stage. Remainder should be drawn by August. It's unlikely that if I were to sell the house that I would cover the loan with the proceeds in the current climate but on the other hand it's a one-off architect designed house in a good location that someone might just decide it's for them. On the basis it only takes one buyer you never know. Other than this mortgage no other significant borrowings. I regard my job as pretty secure (counting my lucky stars on that one these days) and my wife has her own business also.

When you say Irish branch of non-Irish bank which companies fall into that category. Ulster Bank? Others? Thx

 

[Greta]

Ulster Bank, yes, also Nationwide UK, Rabo, Santander (if there are Santander branches in Ireland), not sure if they all provide mortgages but Ulster bank does.

You can check with them, with Ulster Bank anyway, to see, if they'd be likely to give you a mortgage.

Though not sure if it's actually going to make things better, if Irish banks raise interest rates, foreign banks in Ireland will likely follow suit.

It might be a better tactic to just fix your interest rate if you wouldn't be able to cope with rising rates. You might also try to save a large rainy day fund, to be able to cope should interest rates rise significantly.

 

[wbbs]

There is not a hope UB will refinance a half drawn down mortgage even if you had equity.

UB have also announced an increase in their rates. There is no significant difference between the likes of UB, English owned but based in Ireland, and AIB/BoI, Irish owned. Both are operating under the same Irish rules. I actually though OP was asking about taking out a mortgage for example in France to build/buy a house in Ireland to take advantage of better rates in that country (just using France as an example, havent a clue whether their rates are better or worse than ours). Either way that would be a non runner in the same way that Irish Banks in general do not give mortgages to ordinary punters for domestic dwellings (we wont mention developers etc) in other countries. The usual holiday home in Turkey, Spain etc bought by ordinary folk was usually financed by remortgaging their Irish home. I understood the reason to be because if worst case scenario arose it would be very difficult for bank here to repossess property outside the state, same probably works in reverse. Apologies if I have misunderstood your original question.