Mortgage Query (EU)

Who Knows?

Hi all,

I want to inquire about that dirt word "mortgage" and seek some general thoughts on sourcing a mortgage.

Some background:
I recently visited a number of financial institutions to seek a mortgage. I was approved by all of them when seeking approx e200-220k. In fact, they suggested I could get in the range of e375k if I wished (no thanks!!).

My thoughts:
Anyway, as they gave me the corporate piece and how a mortgage is "best for me", I was left wondering about our lack of choice between various financial institutions in Ireland. In addition,in light of recent reports across the media which suggest that we are above the EU average in terms of interest rate repayments, I was left wondering "what is this EU, open market ideal which we funded, promote, follow, etc." How does this free/open market apply to mortgages within the EU. Then I bagen to wonder, could a guy like me apply for a mortgage in another EU country to avail of these lower mortgage rates?

Hope to Answer:
I am still seeking a answer and was hoping someone could shed light on this. Having watch Prime Times piece last night on the "rip-off" mortgage approach in Ireland, it has triggered me to seek advice and maybe rule it in/out as an option. By the way, the Prime Time piece can be found at:
http://www.rte.ie/news/player/prime-time/2015/0409/ :eek:

Any thoughts/experience in relation to seeking mortgages outside of the Republic of Ireland would be much appreciated.

Many thanks.

murphaph

See the other thread: http://www.boards.ie/vbulletin/showthread.php?t=2057410616

Marcusm

Lending money across borders is fairly simple. Recovering that money from people who don't pay is a nightmare unless you have the legal and administrative capabilities of pursuing your debtors across that same border. It's simply not economic unless you have a critical mass of borrowers and for most lending institutions, getting to that critical mass requires some Irish infrastructure to which you ultimately tack on your admin and recovery processes. Before you know it, you have close to full blown infrastructure.

It is possible that someone such as Certus could offer these services to overseas lenders but frankly the market is too small and uncertain for most to consider it.

When dealing with large commercial loans or dealing with high net worth individuals there can be cross border possibilities. However, many of these ultimately have issues regarding security and recovery also.

murphaph

Also, if you want German mortgage rates you gotta accept German repossession rules: I have a German mortgage (not drawn down yet but all signed sealed and delivered) and it is quite clear: 2 months of missed payments and they can call the bailiffs out on you. No need to even get a court order, though they usually have to as people refuse to leave, but the court order comes quickly and without any stays because of this sob story or that sob story, then you are out and that's it. Irish rates largely reflect the higher risk banks are exposed to within the Irish system. If those rates really were way above what a bank needs to make a profit, other banks would have moved in or at the very least, banks that were in the market would not be leaving it (eg Halifax). The softly softly approach for the few costs a fortune for the many...but Irish mortgage holders tend not to even realise that.