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Finding a way around to get a mortgage for an apartment oversea-- PLEASE HELP

  • 08-04-2005 8:00pm
    #1
    Closed Accounts Posts: 344 ✭✭


    Hello, I really hope somebody can help me....I am looking for a mortgage of 40k to pay off in 10 years time (roughly 400 Euro/Month) to help me buy an apartment in Bulgaria of a value of 50k (I have the rest, 10-15k cash), but I can't get a mortgage to buy a property abroad because I don't already own any property in Ireland :(

    This is so frustrating for me because it is a good investment opportunity and I really want to take it. I am 27, single and have a gross annual income of 40k+ but get nothing from my saving account (only 1%), so I really want to invest them somehow.

    Unfortunately the interest rate for a mortgage in Bulgaria is 7% (double than in Ireland) and if I ask a loan here in Ireland I would have to pay 8-10% interest, which would be huge money!

    I don't want to ask to my parents because I don't want to involve them (and anyway they live in another contry), so I need to find a way to borrow those 40k.

    Anyone knows I good excuse I could you use when I ask these mortgage to have a chance of getting it? (I have already been rejected by BOI and First Active).

    I am very new to the property market, so I have zero knowledge of this stuff and every advice is more than welcome...thanks in advance!


Comments

  • Closed Accounts Posts: 1,036 ✭✭✭garred


    I'm sure you can get a loan/mortgage for that amount from your bank if you are a regular saver and if you have the 10-15k. If they say no go to a bank that will and move your account aswell. I'd have no problem moving lock/stock and barrell to a bank that will give me what I want. Are you in the credit union. I can't see why you can't get a mortgage/loan with your circumstances (young, single, high income), talk to a broker.


  • Closed Accounts Posts: 344 ✭✭Coney Island


    Thank you for the quick response! I actually only tried two places so far, and if I understood the problem about getting a loan is that the interest is too high (about 8%) and would big a big loss of money in 10 years repayment, so I really would like to get a mortgage where the rates are much lower (about 3.5% I believe).
    Next week I will certainly work harder with my research though!

    Sorry for the dumb question, what is "Credit Union" ?


  • Closed Accounts Posts: 5,668 ✭✭✭nlgbbbblth


    Irish banks will not take a mortgage over a foreign property
    It is almost impossible to take it as security given the differing legal systems/hassle etc

    However you should be able to get a loan to buy the property provided
    a) repayment capacity stands up
    b) alternative security - letter of guarantee / deposit of share certs etc


  • Registered Users, Registered Users 2 Posts: 78,580 ✭✭✭✭Victor


    Sorry, but what are you getting for €50k in Bulgaria, it sounds like an awful lot of money for there and it sounds like you are being taken for a ride.

    The problem with an Irish mortgage on a Bulgarian property is that you are exposing yourself not only to the vagaries of Bulgarian property, but also to Euro interest rates and the Euro / Lev exchange rate.


  • Closed Accounts Posts: 1,036 ✭✭✭garred


    Coney, a credit union is an institution that give low interest loans to its members. There should be one near you (they are in every town/village). Only thing is that you need to be with them for a while, but I know people who have gotten high loans when joining.
    You CAN get a mortgage for a foreign property but you may have to ask for your parents help (you may need equity in their house as security). I have same problem, just bought myself in Turkey (was going to do Bulgaria but its not established yet and Turkey is already a major holiday resort) but had to use the parents house as security. There are risks when dealing with a non euro currency country but you can also double benefit if that country's currency increases in value. Its like everything in life, you gotta take risks, its hard to find examples when a property has not paid dividends.
    Good luck by the way. ;)


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  • Closed Accounts Posts: 344 ✭✭Coney Island


    Victor wrote:
    Sorry, but what are you getting for €50k in Bulgaria, it sounds like an awful lot of money for there and it sounds like you are being taken for a ride.

    The problem with an Irish mortgage on a Bulgarian property is that you are exposing yourself not only to the vagaries of Bulgarian property, but also to Euro interest rates and the Euro / Lev exchange rate.

    Properties could be much cheaper in Bulgaria, however I am planning of buying on the Black Sea Coast, where the prices are higher than in the rest of the country. With 50k I am planning to buy a 1 bedroom apartment. But if I can't get a mortgage I will have to reconsider the possibility to get a studio apartment instead, which would be about 40k, and I could pay 15k cash and loan the other 25k and pay them off in 5 years. I just feel that for only 10k more I can get something much bigger and better, and don't want to wait any longer, as prices may (or may not) go up dramatically next year....
    This is so frustrating, but I will find my way around...

    Garred, thanks for the info. Was thinking about buying in Turkey as well, but then I opted for Bulgaria, hopefully it will pay off.


  • Registered Users, Registered Users 2 Posts: 11,389 ✭✭✭✭Saruman


    can you get one in the UK? might be an option as people do it all the time there.


  • Registered Users, Registered Users 2 Posts: 2,683 ✭✭✭Carpenter


    garred wrote:
    Coney, a credit union is an institution that give low interest loans to its members. There should be one near you (they are in every town/village). Only thing is that you need to be with them for a while, but I know people who have gotten high loans when joining.
    You CAN get a mortgage for a foreign property but you may have to ask for your parents help (you may need equity in their house as security). I have same problem, just bought myself in Turkey (was going to do Bulgaria but its not established yet and Turkey is already a major holiday resort) but had to use the parents house as security. There are risks when dealing with a non euro currency country but you can also double benefit if that country's currency increases in value. Its like everything in life, you gotta take risks, its hard to find examples when a property has not paid dividends.
    Good luck by the way. ;)


    whats the story with turkey i am thinking about it myself whats the fees and where u buy


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