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New EU Mortgage Directive for non resident mortgages

  • 25-01-2016 10:23am
    #1
    someday2010
    Registered Users, Registered Users 2 Posts: 187 ✭✭


    Does anyone know anything about the new EU Directive coming in at the end of March in relation to banks not being able to lend to non-residents anymore e.g Irish person living in Australia looking to borrow from Irish bank to buy before moving home?


Comments

  • #2
    Barely Hedged
    Closed Accounts Posts: 992 ✭✭✭Barely Hedged


    someday2010 wrote: »
    Does anyone know anything about the new EU Directive coming in at the end of March in relation to banks not being able to lend to non-residents anymore e.g Irish person living in Australia looking to borrow from Irish bank to buy before moving home?

    If the fx rate between your main income currency and your mortgage currency varies by 20% they have to offer you a mortgage in your income currency. The result of this is that they'll be more crictical of mortgages to non residents but will still offer them in USD and GBP as all Irish banks have an active capital markets business in these currencies. AUD or NZD residents don't have a hope


  • #3
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,286 Mod ✭✭✭✭The_Conductor


    Certain Eastern European countries have traditionally taken out mortgages in either Swiss Francs- or Euro- while remaining in receipt of the major source of their income in another currency (such as Poland and the Zloty). Poland has recently had to set aside 2.5 billion to offset losses related to Polish residential mortgages denominated in Swiss Francs- and it is probable this may be the thin edge of the wedge......... Some other neighbouring countries are similarly affected.


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