Buying in Ireland from UK (bizarre requirement)

DanGlee · 21-09-2010 06:08PM #1

Hi,

OK, this is strange. I am looking into purchasing a property in Ireland, I am currently in the UK, but lived in Ireland for 10 years and looking to move back ( left because of recession and jobless, but now looking to purchase before I move back!) ok, background out of the way.

So i have a deposit money and found the house I really want, its only €72000 which is sweet, so going to buy as holiday home, fix it up and move in when i secure a new job in the next year or so. However I went to a specialist with my house info and salary etc for a pre requisite test and i received a phone call this evening from somebody saying that basically I can not buy the house because the minimum price has to be €150,000??? Now... Correct me if I'm wrong, but wasn't part of the reason for the recession is banks lending to people above their means?
This is the house i really want, but i can't have it because its not expensive enough? That's just the most retarded thing I've heard in a long time? Is anybody on here aware of this rule as I can't find it anywhere on web? I really want ( and need for family reasons) this house...

Any help or advice would be greatly appreciated!

Thanks
DG

Blackjack · 21-09-2010 09:08PM

DanGlee wrote: »

Hi,

OK, this is strange. I am looking into purchasing a property in Ireland, I am currently in the UK, but lived in Ireland for 10 years and looking to move back ( left because of recession and jobless, but now looking to purchase before I move back!) ok, background out of the way.

So i have a deposit money and found the house I really want, its only €72000 which is sweet, so going to buy as holiday home, fix it up and move in when i secure a new job in the next year or so. However I went to a specialist with my house info and salary etc for a pre requisite test and i received a phone call this evening from somebody saying that basically I can not buy the house because the minimum price has to be €150,000??? Now... Correct me if I'm wrong, but wasn't part of the reason for the recession is banks lending to people above their means?
This is the house i really want, but i can't have it because its not expensive enough? That's just the most retarded thing I've heard in a long time? Is anybody on here aware of this rule as I can't find it anywhere on web? I really want ( and need for family reasons) this house...

Any help or advice would be greatly appreciated!

Thanks
DG

I think some lenders will lend below this amount.

The reason there is a minimum amount is because there is a cost and a risk to the Banks in offering Mortgages. If the cost isn't going to be covered quickly (i.e. in the first year at least) then it's not worth their while. If you assume that the bank is going to get a margin of 50 to 70bps, then all they'll collect off you in the first year on 150K is about 1000 euro (specifically 750 to 1050 at those margins), so they need to at least cover that.

DanGlee · 21-09-2010 10:08PM

Thanks Blackjack,

That's makes some sense, I understand everybody has to have their cut and make some money, but it just seems silly in this current climate, they want people to take out mortgages still, to help the economy recover, but obviously not to the stupid amount they were a few years ago, offering 100s of 1000s above their means! Hence I figured I would get not only the house i want, but it's very reasonable and well within my means, since i buying on my own. I think ( and hope) that if I make enough effort, phone calls and emails I will find. A bank or lender that will let me take out a mortgage for that amount on this home for my son in ireland!

Wish me luck, and thanks for the reply!

DG

Blackjack · 21-09-2010 10:43PM

DanGlee wrote: »

Thanks Blackjack,

That's makes some sense, I understand everybody has to have their cut and make some money, but it just seems silly in this current climate, they want people to take out mortgages still, to help the economy recover, but obviously not to the stupid amount they were a few years ago, offering 100s of 1000s above their means! Hence I figured I would get not only the house i want, but it's very reasonable and well within my means, since i buying on my own. I think ( and hope) that if I make enough effort, phone calls and emails I will find. A bank or lender that will let me take out a mortgage for that amount on this home for my son in ireland!

Wish me luck, and thanks for the reply!

DG

I think EBS may be your port of call.

DanGlee · 22-09-2010 04:05AM

But I'm based in the uk and work here?

Blackjack · 22-09-2010 11:12PM

DanGlee wrote: »

But I'm based in the uk and work here?

You mean here as in the UK, or here as in Ireland?.

EBS is the Educational Building society, if you are located in another country, you are going to have your applications either rejected, or subject to a lot of scrutiny.

If a Mortgage isn't a possibility, try a personal loan, although for 75K, that might be stretching it.

DanGlee · 23-09-2010 12:19AM

Sorry yes, based in UK and work in UK.

Yep, I knew there no chance of getting a mortgage in Ireland where in the UK. Don't think a loan for that amount would be wise!

There must be a lender, somewhere in the whole of the UK that will do a mortgage for that amount, they say nothing is impossible? I'm hardly asking for the world on a plate!!!

Blackjack · 23-09-2010 12:48AM

DanGlee wrote: »

Sorry yes, based in UK and work in UK.

Yep, I knew there no chance of getting a mortgage in Ireland where in the UK. Don't think a loan for that amount would be wise!

There must be a lender, somewhere in the whole of the UK that will do a mortgage for that amount, they say nothing is impossible? I'm hardly asking for the world on a plate!!!

Have you tried Nat West, or Clydesdale?.

Victor · 23-09-2010 11:50PM

DanGlee wrote: »

I went to a specialist with my house info and salary etc for a pre requisite test and i received a phone call this evening from somebody saying that basically I can not buy the house because the minimum price has to be €150,000???

It sounds like the mortgage broker wants commission on a bigger property.

mrgaa1 · 24-09-2010 09:01AM

which all brings up the question why should anyone (private client or developer) attempt to sell anything when the financial institutions won't give a mortgage for a low value when everyone is screaming that prices are too high.
The OP is going to take business into Ireland - he's trying to buy something, some materials and perhaps local labour will be used - he'll tell his friends about it - they may come over and spend a few pound - these friends may well tell their circle of friends that Ireland is great - prices aren't as they seem etc...... but at the moment the guy can't get a mortgage for something that may well be the correct price so guess what he's telling his friends that hes' trying to buy in Ireland (good value, wants to etc...) but can't. and so that circle starts.
Which circle do we want to happen?

Buying in Ireland from UK (bizarre requirement)

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