overseas property as a collateral for a secured loan

cocoa123

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I'd like to buy a house. My salary is slightly above 40K and bank estimates my mortgage limit as 150K which is very low amount for my area. However I own another house overseas free and clear from any loan. Can irish bank raise my mortgage limit taking my overseas property as a collateral for a secured loan.
 
In what country is the property and have you full title deeds? That's for starters only.
 
I'm not quite sure what does it mean "have you full title deeds?". I'm the owner of the house abroad. Non-EU country, i.g Serbia.
 
Highly unlikely any bank will take as security a property outside the state, too difficult for them to repossess if they ever needed to.
 
Hope this helps with what you didn't understand.
Friends of mine have what they thought was their fully paid for property in Cyprus. It turns out that over 100,000 ex pats have property in Cyprus (Rep of Cyprus) and have no title deeds. Developers there are allowed to take out loans on land after you buy property that is going to be built on it, if you want title deeds and the developer has loans taken out, then goes bust, you have to pay his debts. A lot of problems also in Spain with property. I don't know anything about property purchasing in Serbia, nor do I want to in all honesty. I doubt, very very much if any Irish Bank, or any other Bank, will give you a loan based on Serbian property, or similar.
 
There is no way an Irish Bank can realise that security if needed so no chance at all of using that as collateral to Irish borrowings.,
 
I agree fully with the above posters that it is highly unlikely that any Irish bank will be interested in taking a property in Serbia as part of the collateral for an Irish mortgage.

Aside from the potential legal and jurisdictional issues surrounding a repossession, it doesn't solve another issue anyway - the bank believes that you can afford the repayments on a mortgage of €150,000. Taking a Serbian property as collateral wouldn't change that. In the bank's eyes you cannot afford the repayments on a mortgage of more than €150,000. The Serbian property may be generating an income for you, but it's just as unlikely that any Irish bank will take this into account as doing so would require knowledge of the Serbian property market / taxation etc., in order to assess how sustainable this income is.
 
Why don't you sell the foreign property and put the proceeds towards a house purchase here? Not sure what you expect the bank to do. Collateral is fine but as Liam says, it comes down to affordability.
 
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