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Foreign Bank Mortgage

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  • 08-04-2015 4:56pm
    #1
    Kung Lao
    Closed Accounts Posts: 50 ✭✭


    Is it possible to obtain a mortgage from a bank outside the State for the purchase of a property within the State?


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    #2
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,280 Mod ✭✭✭✭The_Conductor


    Kung Lao wrote: »
    Is it possible to obtain a mortgage from a bank outside the State for the purchase of a property within the State?

    It is my understanding that as long as the bank/financial institution was licensed by a Eurozone central bank, and subscribes to the code of business conduct for the country in which the loan is proposed- it is technically able to offer the proposed loan. Its highly unlikely though- as the difficulty in administering a loan/loan portfolio in another jurisdiction would make it an unviable proposition purely from a financial perspective- regardless of whether or not they are technically able to provide the loan.

    In practice- it doesn't happen.


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    #3
    draiochtanois
    Registered Users Posts: 2,655 ✭✭✭draiochtanois


    This post has been deleted.


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    #4
    murphaph
    Registered Users Posts: 19,018 ✭✭✭✭murphaph


    Not too many banks are going to get involved in the Irish market where not paying your mortgage doesn't necessarily mean getting turfed out on your ear. And if they do they'll have to charge similarly high rates to cover the risk the public seems to expect them to by going easy on mortgage defaulters.


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    #5
    miezekatze
    Registered Users Posts: 1,341 ✭✭✭miezekatze


    I looked into this once, would have needed a guarantor in that country then it would have been possible.


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    #6
    Bob24
    Registered Users Posts: 10,905 ✭✭✭✭Bob24


    It is technically possible, but most likely the foreign bank will not consider the Irish property as secure asset to secure the loan (for them to try to repossess a property her if you stop paying your mortgage would be too messy). If you already have another property (or a lot of cash you are OK to freeze) in that country some banks will look into it, others won't. A French friend's ban said no even though he owns an expensive property in Paris - but my French bank said yes (though my problem is my French property is far from covering the full amount I need to buy here).

    Then the other issue is that when a seller learns your mortgage is coming from abroad, they will definitely favor a cash buyer or an Irish mortgage holder even if they are offering a bit less (which is fair enough I think, foreign banks are processing applications differently and for them it is a special transaction, so the chances of the loan offer falling through or taking much longer to be processed are higher than with an Irish bank).


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