Mortgage for house abroad

Giggsy19

Hey! We are looking at buying an apartment abroad for investment purposes. Would it be possible to get a mortgage from an Irish bank, or have they stopped doing this?

Lad GAGA

The only way you will be able to do this-as far as I know-is for you to remortgage/top up your Irish mortgage (assuming you have one) and use those proceeds to purchase the foreign property. It's unlikely that an Irish bank would lend money where the collateral/security is a foreign asset. For this to happen the amount you'd be allowed to borrower/top up would be on the basis that your revised mortgage/loan is affordable and that the total debt you would now have outstanding does not exceed the value of your Irish property i.e. the LTV would have to be less than 100% and maybe a lot less than 100% for them to agree to it.
The other option is to look to get a mortgage from a bank in the country where the property is located. They will then use that asset as their security/collateral, To be honest this is not something you should do without getting proper legal and tax advice as tax obligations may arise in both countries.

Henry Ford III

Borrow from a local lender.

Trish56

You won't get a mortgage here in Ireland to purchase a property abroad or get a top up/ remortgage on your existing private dwelling to purchase one.

Mortgage rates are cheaper abroad so it makes more sense to borrow in the country you are purchasing in.