Mortgage in Sterling to buy a property in Ireland

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Nickmart

Guest
Does anyone know if this is possible?
if so what are the pros and cons

( the seller is UK based, hence the question )
 
The two main areas of complication that I see will be currency risk (asset is in one currency, loan is in another, exchange rates move), and legal (the loan provider may require some hold over the title of the property, but this is in a jurisdiction that they may not operate in).
 
tiger said:
The two main areas of complication that I see will be currency risk (asset is in one currency, loan is in another, exchange rates move), and legal (the loan provider may require some hold over the title of the property, but this is in a jurisdiction that they may not operate in).
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Plus the interest rates in the UK are higher at present, normally people are considering doing it the other way round because of this factor, I can't see any benefits of using a sterling mortgage for an Irish property at the present time.
 
Nickmart said:
Does anyone know if this is possible?
if so what are the pros and cons

( the seller is UK based, hence the question )
Click to expand...

What has the seller being UK based got to do with the mortgage taken out by the buyer? If they are seeking payment in sterling then borrow in Euros and convert to sterling to pay them , if the price is set in sterling then consider using a forward contract to cover the exchange risk between the date of signing contracts and closing. Frankly if the seller is looking for sterling they are chancing their arm (hoping you will bear the cost of their currency conversion problem), it is customary for Irish property to be sold in Euros and depending on the strength of your negotiating position I would insist on this.
 
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