Buy property in Spain by getting Irish mortgage with Irish property as security?

gohan_ss

Registered User
Messages
2
Hello,

I owe an apartment in Dublin. I am now trying to buy a house in Spain but it's very difficult for non-residents (and an extra 5k upfront just in mortgage registration fees).

Would I be able to get a mortagage from an Irish bank by using my Irish apartment as a security? The 2 properties have a similar market value.

Thanks
 

newirishman

Frequent Poster
Messages
776
For what reason or reasons?
The quick and simply answer: the 65 billion reasons that state had to use to prop up the banking system.
You might be able to get some equity release in your Irish property but I doubt for much more than maybe 50-60%. Usual other risk assessment applies of course.
 

jim

Frequent Poster
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464
But exactly why would a bank not avail of this? What are the specific reasons please?

If an individual seeks a mortgage and has adeqaute security what is the issue?
 

Monbretia

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1,633
Mainly because it went so badly wrong for so many people during the boom, equity was released on homes to fund holiday homes all over Europe and even offices for rent in Dubai. When the you know what hit the fan and these people lost jobs or had salary cuts their home ended up at risk when they got into financial difficulties and all for a property abroad that a lot of the time was hard to offload in a hurry.

Banks don't want to get into that sort of risky lending again, I doubt it's an area they have any interest in anymore, it's difficult enough if not downright impossible to release equity for any reason other than to do extra work to the property mortgaged these days.
 

Palerider

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1,383
The Banks are open for business. Shop the proposal in person, If the proposal meets their now more stringent criteria then you will get the facility you require, you will need to confirm before drawdown that you have received separate advice from a solicitor to ensure you understand the risks to the Irish property. 60% - 70% is possible subject to lending criteria and repayment capacity.
 

Gordon Gekko

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3,610
Wouldn't the cheaper mortgage in Spain be a better option (even with the €5k)?

I've been looking at Portugal and non-resident mortgages are reasonably easy to get.
 

gohan_ss

Registered User
Messages
2
If you are non resident in Spain it isn't any cheaper or easier to get a mortgage from Spanish banks. Interest rates would be 3% to 4% instead of 1 to 2.3% for residents, plus all opening costs over 3% than mortgage value. Spanish banks they ask for many and many documents it's not easy to get everything they request, there's a lot of bureaucracy. I will try with my Irish bank and see possibilities. Thanks
 

Nermal

Frequent Poster
Messages
87
If an individual seeks a mortgage and has adeqaute security what is the issue?
Adequate security? You are aware that any time a bank tries to repossess a property here it has an expensive, long court fight on its hands?
 
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