Mortgage on foreign property

BlackEdelweiss

We have a mortgage with TSB and we are emigrating next month. Just wondering if we could try to sell our house here and apply for a new mortgage to buy a property in New Zealand and include any shortfall the sale of our house would incur which would probably only be about 10K. We could sell the house for a cheaper price if we could absorb the deficit into a new loan.

BuffyBot

I'm not quite clear on what you're asking - are you applying for a new mortgage in NZ and hoping the NZ bank will cover the short fall on your Irish property, or applying to ptsb for a mortgage on a property in NZ and hoping they'll transfer the shortfall on to that.

Either way, I doubt either of those scenarios is likely to occur.

BlackEdelweiss

Asking TSB to give us a mortgage for a foreign property.

phormium

A bank in this country will not in general give you a mortgage for a property in another country, not considered good security for them.

BuffyBot

BlackEdelweiss wrote: »

Asking TSB to give us a mortgage for a foreign property.

Honestly, I'd rate your chances close to zero.

chris85

No chance what so ever. Other posters saying slim to no chance are even being generous. The banks occasionally offer mortgages on foreign properties but generally this is for second/holiday homes where they use additional security from their primary residence in Ireland. In your case you are emigrating to NZ and would be living there and the bank would not do this for you, and rightfully so. Its a crazy thought to be honest but each to their own.

You need to sell your place here and you can apply for mortgage in NZ as well in the meantime but they really probably wont consider the application until you are a permanent resident there for a while. Otherwise the risk is just not worth it for them.

The Corinthian

phormium wrote: »

A bank in this country will not in general give you a mortgage for a property in another country, not considered good security for them.

Banks will generally look for a greater deposit and charge more in terms rate and commissions, to offset the greater risk of a property in a foreign jurisdiction - and that's just when the property is in a foreign jurisdiction, if you are too, I'd have to agree that your chances of getting a mortgage are pretty slim.

Another thing to consider is currency and FX, as if you are going to be living and working in NZ, you'll ultimately be earning and paying in NZD, and if you're paying a EUR mortgage this could present problems (or a windfall) in the future.

A lot of Poles, got CHF mortgages to buy properties, during the boom, because of the low Swiss interest rates. This was all well and good, until the EUR and PLN (in particular) depreciated sharply against the CHF, leaving many with payments that they found difficult, if not impossible to meet.

BlackEdelweiss

Thank everyone, just a thought anyway.