Criteria for investment mortgage.

S

sj7rr

Guest
Can anyone outline what the criteria is in order to qualify for an investment mortgage.

[1] Do I already have to have a property in Ireland in order to get a mortgage for a property abroad?
[2] What percentage of the foreign property house price would I need to provide as collateral before an Irish mortgage lender will give me a mortgage to cover the costs of the rest of the property price.

Thanks.
 
Criteria for investment mortgage

Generally, if you wish to purchase a property abroad and obtain an Irish mortgage to do so, you need to use an Irish property as collateral and release some equity from it to purchase the overseas property.

That way, assuming that you have enough equity in the Irish property you may borrow as much of the purchase price of the overseas property as you wish.

Otherwise you need to look at lenders in the country where you want to buy the foreign property if you wish to use it as collateral.

I don't know of any Irish lenders who will take an overseas property as collateral apart from ones from the UK.

Dev
 
Re: Criteria for investment mortgage

Also you may need to consider the offsetting of loan interest against rental income for the purpose of calculating your tax liability in the country where the property is located. Some countries may not allow you to easily offset the interest from Irish loans (even where you can demonstrate that they were used to purchase the property in question). This therefore would have tax implications.

Regards,
Paidi
 
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