English Mortgage

[nicK]

Heh guys,

Ive recently purchased a 1 bed apartment in Nottingham 'Litmus Project' for lacemarketproperties.co.uk

I dont need to get my mortgage for another 2 years as it wont be completed until mid 2007 but I was wondering if any of you could help me with some enquires I have about getting my mortgage.

I want to know if it is possible for me to get a irish mortgage with irish interest rates for my mortgage in england as english mortgage rates are in the excess of 5.5% compared to ireland 3%.

If any one knows any irish mortgages companies/brokers/building societys that might give me a english mortgage with irish rates that would be great or even if any of you know any good english mortgage companies either.

Brendan.

Bluehair

You should probably seek independent financial advice on this as even if possible it may not be advisable due to currency risks etc.

Are you a first time buyer? Do you already have a mortgage secured in the UK? Whats your income and cost of the property?

If you can tell us more we can probably get a clearly picture.

Iri$hKeLt

I posted under my brothers name [nick] (forgot to logout)

I am a first time buyer.

I am only 18years of age but my father is going guarantor for me so I have no problem getting the mortgage money wise. I have a english mortgage company ready to take on my mortgage in mid 2007 when apartment is completed but its 5.5% which is fairly high compared to irish mortgage rates of 3.5%

The cost of the property was 156,00sterling, I have already paid 10% 15,600 and in another 12months I will have to pay a further 5%.

Where would I go/contact to see if it is posible to get a irish mortgage on a english property?.

iguana

Bank of Ireland have recently started providing mortgages in the UK, but I'm pretty sure they use the Bank of England base rate. However the base rate has recently been lowered by .25% here, and you have no idea what the situation will be by 2007. BoE could have further reduced or the CEB could have gone up.

Are you aware though that there is no mortgage interest relief here, so that will make quite a difference to your mortgage repayments. I doubt you can get an Irish mortgage for a UK property while you live and work in the UK. But if you can please post details up here.

Victor

Seems a little mad. Expect Sterling to rise in the next few years (end of the oil peak cycle).

Mad Mike

Beware. If you buy a property in UK£ and get a loan in euro you are very exposed to exchange rate risk. If sterling falls in relation to the euro you will take a big hit.

Iri$hKeLt

Coming to think of it mad mike you have a point.

My rent will be in sterling each month and I will have to change it to euro's so might cost quite for change over if rates go mad.

Ok then does anyone know any good english mortgage companies that I could contact? Bank of England say english mortgage rates are down to 4.5% but any mortgage companies I have looked at have rates of 5.5% - 6%

Would bank of england themselves give me a mortgage at 4.5%?

I dont know much about english mortgages but any of you who do I would appreciate you filling me in with some info.

Brendan

Bluehair

Iri$hKeLt wrote:

Ok then does anyone know any good english mortgage companies that I could contact? Bank of England say english mortgage rates are down to 4.5% but any mortgage companies I have looked at have rates of 5.5% - 6%

Ah no. That rate is what the banks borrow at (4.5% in England). They then add on a premium and sell on to you typically at around 1% more but sometimes slightly less sometimes a lot more.

The ecb rate (European Central Bank) is 2% at the moment hence rates in Ireland typically around the 3% area for joe consumer.

Victor

Iri$hKeLt wrote:

Would bank of england themselves give me a mortgage at 4.5%?

The BOE is a central bank they don't deal with ordinary people, only banks.

Iri$hKeLt

Victor wrote:

The BOE is a central bank they don't deal with ordinary people, only banks.

Oh right thanks for that victor and bluehair.

Can any of you recommend english mortgage companies?

I was looking at firstactive.co.uk looks pretty good only they dont give mortgages for 'buy to let'

iguana

Pick up the Guardian on a Saturday. Their Jobs & Money section always has a detailed guide to the best mortgage offers and has a weekly top five for each type of mortgage, eg variable/fixed. They list from building societies and high st banks. I've seen interest rates in the 4.48% region.

Or look on www.guardian.co.uk/money/compareandbuy

It is also worth checking out Bank of Ireland UK as their mortgage service is quite new but I have heard good things about it.

Mad Mike

Victor wrote:

Seems a little mad. Expect Sterling to rise in the next few years (end of the oil peak cycle).

Sorry to wander off topic but from my limited understanding of finance the fact that Sterling interest rates are higher than Euro rates means that the gurus of finance expect sterling to fall relative to the euro.

Victor

Mad Mike wrote:

Sorry to wander off topic but from my limited understanding of finance the fact that Sterling interest rates are higher than Euro rates means that the gurus of finance expect sterling to fall relative to the euro.

Well relative to basket of currencies rather than specificly to the euro. However, it would appear that sterling interest rates are peaking.

ck1

Hi, just thought I would give you a bit of info as i worked in this industry in the UK for more years than I care to remember. There are many mortgage companies or lenders and as state before the rate you will get quoted is linked to the Central Bank rates in the UK. The other rates that you might see is LIBOR which is London Interbank Offer Rate and this is a variable rate that changes quarterly. Lenders here could offer the monies however the problem is them taking a legal charge over the property and they only wish to take charges over properties that they have proper access to i.e. in their own country.

Take care as you are stating you are a first time buyer however your father is standing as Guarantor which effectively deems the property as being purchased as a second time buyer (assuming that your father purchased a property in the past) - under Irish Law not too sure about english law on this but it tends to be very similar.

You also mentioned rent. Are you buying the property to rent out or to live in???

The main lenders in the UK which offered best rates a few years ago would have been the following...

Yorkshire Building Society
Birmingham Midshires
Bristol & West
Royal Bank of Scotland

There was one company that I used on a regular basis which was Private Label, based on Great Queen Street London I think they were at number 14 and they were efectively Mortgage Brokers with access to a very large number of lender but I would check out some of the High Street Lenders before aproaching them even if just to familarise yourself.

Another thing, in the UK loans over 75% of the Value of the Property often carried a loading called a MIG Premium (Mortgage Indemnity premium) some lenders did not charge this. Not sure if it is still applicable over there or if the lenders just absorb the costs. Effectively, this is a once off premium calculated as a percentage of the loan above the 75% Value. E.g. Property Value STG£100k - Loan STG£90k LTV=90% therefore 15k is chargable to the MIG Premium and the rate from memory for this was around 5% - therfore the once off premium payable was STG£750.00. Mortgage Indemnity Premiums generally ranged from 4% to 9% depending on the amount borrowed above 75% of the Value.