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Mortgages in Ireland and England

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  • 21-07-2015 12:31pm
    #1
    pipelaser
    Registered Users Posts: 570 ✭✭✭


    I was wondering if anyone had any experience to finance the purchase of a house with both an Irish and English mortgage.

    I live in England earn money through my own limited company.
    I have recently come back to Ireland for a holiday and have been offered a full time job with a company.

    I was wondering if I could accept the job in Ireland and get a mortgage(I believe you need three months of wage slips?)
    Then, when the mortgage is secure(and I have perhaps bought a house in Ireland on that mortgage)Then return to England, get a job there, get a mortgage there, sell the house in Ireland, and then use both the money from The house in Ireland the English mortgage to buy myself a bigger house in England?

    Are there any laws to stop that happening?


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    #2
    marathonic
    Registered Users Posts: 1,662 ✭✭✭marathonic


    You'll need to have at least worked through your probationary period in Ireland before you'll be offered a mortgage.

    How long do you intend to stay in Ireland and how much of a deposit you have?

    If you're only staying in Ireland for the short-medium term, buying here is very risky. Property prices could fall meaning you'd lose your entire deposit when selling to go back to the UK - and possibly even lose more than your deposit.

    Obviously, you'll not be able to keep the mortgage in Ireland after you sell the Irish property - the funds from the sale will pay off the mortgage with the excess, if any, going to you.


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    #3
    Michael D Not Higgins
    Moderators, Society & Culture Moderators Posts: 7,223 Mod ✭✭✭✭Michael D Not Higgins


    I'm not entirely sure what you're asking. You say you want to buy a house in Ireland with an Irish mortgage then sell the house and buy a house in England with an English mortgage (and whatever proceeds from selling the house in Ireland minus remaining mortgage costs).

    Why would there be a law to stop that? Or is there something I've missed in there.


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    #4
    pipelaser
    Registered Users Posts: 570 ✭✭✭pipelaser


    Michael D Not Higgins wrote: »
    I'm not entirely sure what you're asking. You say you want to buy a house in Ireland with an Irish mortgage then sell the house and buy a house in England with an English mortgage (and whatever proceeds from selling the house in Ireland minus remaining mortgage costs).

    Why would there be a law to stop that? Or is there something I've missed in there.

    Yes. That's is.
    That's good. So whats the climate like for getting a mortgage in Ireland nowadays?
    Would 3 months wages slips do and about a 20% deposit?


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    #5
    Stheno
    Moderators, Business & Finance Moderators, Science, Health & Environment Moderators, Social & Fun Moderators, Society & Culture Moderators Posts: 51,687 Mod ✭✭✭✭Stheno


    pipelaser wrote: »
    Yes. That's is.
    That's good. So whats the climate like for getting a mortgage in Ireland nowadays?
    Would 3 months wages slips do and about a 20% deposit?

    More likely six months and in the job min. Six months too

    Is your new job permanent?


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    #6
    pipelaser
    Registered Users Posts: 570 ✭✭✭pipelaser


    marathonic wrote: »
    You'll need to have at least worked through your probationary period in Ireland before you'll be offered a mortgage.

    How long do you intend to stay in Ireland and how much of a deposit you have?

    If you're only staying in Ireland for the short-medium term, buying here is very risky. Property prices could fall meaning you'd lose your entire deposit when selling to go back to the UK - and possibly even lose more than your deposit.

    Obviously, you'll not be able to keep the mortgage in Ireland after you sell the Irish property - the funds from the sale will pay off the mortgage with the excess, if any, going to you.

    So after I sell the property in Ireland, the mortgage has to be paid off in a lump sum? I assumed that I would just continue to pay off the monthly amount for 30 years or whatever?


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    #7
    Michael D Not Higgins
    Moderators, Society & Culture Moderators Posts: 7,223 Mod ✭✭✭✭Michael D Not Higgins


    pipelaser wrote: »
    So after I sell the property in Ireland, the mortgage has to be paid off in a lump sum? I assumed that I would just continue to pay off the monthly amount for 30 years or whatever?

    Now I see your problem. No, you would have to clear the finance as the bank would have no asset to back up the loan.

    Edit: I'd also add if you still had that much of a loan hanging over you, the English bank would be unlikely to grant you much of a mortgage in the first place.


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    #8
    pipelaser
    Registered Users Posts: 570 ✭✭✭pipelaser


    Stheno wrote: »
    More likely six months and in the job min. Six months too

    Is your new job permanent?

    Yes, the new job is permanent.
    I was also wondering if there is anything illegal about having two mortgages?
    I believe if I bought a house in England they wouldn't even know about the Irish mortgage. My finances/credit rating in England are in no way related to my bank accounts here.


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    #9
    Michael D Not Higgins
    Moderators, Society & Culture Moderators Posts: 7,223 Mod ✭✭✭✭Michael D Not Higgins


    pipelaser wrote: »
    Yes, the new job is permanent.
    I was also wondering if there is anything illegal about having two mortgages?
    I believe if I bought a house in England they wouldn't even know about the Irish mortgage. My finances/credit rating in England are in no way related to my bank accounts here.

    During the mortgage application you would have to make a false declaration about your finances. In other words, you'd have to commit fraud for that to work.


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    #10
    marathonic
    Registered Users Posts: 1,662 ✭✭✭marathonic


    pipelaser wrote: »
    Yes, the new job is permanent.
    I was also wondering if there is anything illegal about having two mortgages?
    I believe if I bought a house in England they wouldn't even know about the Irish mortgage. My finances/credit rating in England are in no way related to my bank accounts here.

    Nothing illegal about two mortgages - but, as stated above, the mortgage will be paid off before you see a penny when you sell the house on which it's secured.

    They wouldn't know about the mortgage if you lied to them about other borrowings. If they ever found out, they'd put a marker on your credit file and you'd never get credit again - no car on HP, no future house moves if they require a mortgage, no credit cards, no phone contracts, etc.


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    #11
    Stheno
    Moderators, Business & Finance Moderators, Science, Health & Environment Moderators, Social & Fun Moderators, Society & Culture Moderators Posts: 51,687 Mod ✭✭✭✭Stheno


    pipelaser wrote: »
    Yes, the new job is permanent.
    I was also wondering if there is anything illegal about having two mortgages?
    I believe if I bought a house in England they wouldn't even know about the Irish mortgage. My finances/credit rating in England are in no way related to my bank accounts here.

    Experian who are a big UK credit referencing agency operate in Ireland now, I'd not be so sure of your statement above


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    #12
    pipelaser
    Registered Users Posts: 570 ✭✭✭pipelaser


    Ok Thanks for clearing that up guys! Keeping me on the straight and narrow!

    Next question. If I bought an apartment for cash here-no mortgage, is it likely that I would be able to use the value of that house to get a mortgage on another house without a deposit?


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    #13
    pipelaser
    Registered Users Posts: 570 ✭✭✭pipelaser


    Stheno wrote: »
    Experian who are a big UK credit referencing agency operate in Ireland now, I'd not be so sure of your statement above

    I have an excellent credit score on Experian in the UK. They don't even take my Irish banks accounts or old Irish mobile phone contracts into account(and I wouldn't want them to!). Hopefully they won't ever do that!


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    #14
    Michael D Not Higgins
    Moderators, Society & Culture Moderators Posts: 7,223 Mod ✭✭✭✭Michael D Not Higgins


    pipelaser wrote: »
    Ok Thanks for clearing that up guys! Keeping me on the straight and narrow!

    Next question. If I bought an apartment for cash here-no mortgage, is it likely that I would be able to use the value of that house to get a mortgage on another house without a deposit?

    No. Technically you could get a mortgage on the apartment to free up capital to use as the deposit but that would then be taken into consideration as part of your outgoings and decrease the loan amount accordingly.


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    #15
    pipelaser
    Registered Users Posts: 570 ✭✭✭pipelaser


    Thanks guys, everything is crystal now.
    Looks like I won't be a property mogul anytime soon!


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