Do UK banks lend to Irish expats to buy homes in Ireland?

[Brendan Burgess]

An auctioneer told a friend of mine that he was outbid by an Irish person living in the UK who was getting their mortgage from a UK lender.

I told them that I did not believe a word of it.

1) I have never seen it discussed on askaboutmoney
2) I don't believe anything estate agents say
3) It would be crazy for a UK lender to give a loan secured on an Irish property
4) It probably would not be very wise to borrow in sterling to buy an Irish property
5) Irish banks do lend to UK residents to buy property in Ireland.

 

[Lightning]

5) Irish banks do lend to UK residents to buy property in Ireland

Yeah and Irish banks are still giving loans to UK residents. A UK mate recently just got a loan from EBS for a buy-to-let Irish property.

 

[Gordon Gekko]

It could be from a private bank, Brendan. I have seen this.

 

[Brendan Burgess]

Thanks Gordon

What is a private bank?

Brendan

 

[Steven Barrett]

Yeah and Irish banks are still giving loans to UK residents. A UK mate recently just got a loan from EBS for a buy-to-let Irish property.

He may have had a loan offer before the new regulations came in. I am not aware of any Irish banks offering loans now to people who earn an income not in Euros. Their computer systems are far too old to cope with the new regulations. There's not enough business in it for them to spend the money on getting their systems up to date.

Steven
www.bluewaterfp.ie

 

[Gordon Gekko]

Thanks Gordon

What is a private bank?

Brendan

e.g. Coutts, HSBC Private, Barclays Private, Smith & Williamson Private, Investec Private Bank...AIB Private and Bank of Ireland Private are equivalents here. Boutique offerings for high net worth individuals. Generally, it involves dressing up standard stuff to justify excessive charges, but for quirky lending scenarios and cross border transactions, they can be useful.

 

[LS400]

On point 3)
I bought a property in UK with a mortgage from an Irish Bank in 2007. I can't see why it should be any different with the rolls reversed.

With the loan secured against the property, they have protected their investment.

 

[Gordon Gekko]

New rules have come in which act as a barrier to people funding a property in one currency with income in another currency. That has complicated things.

 

[Mackemdub]

a UK bank would not fund a(potential) Irish house purchase in 2006/7 for me (UK resident moving here with Irish wife) so i doubt they would do it now

 

[Steven Barrett]

On point 3)
I bought a property in UK with a mortgage from an Irish Bank in 2007. I can't see why it should be any different with the rolls reversed.

With the loan secured against the property, they have protected their investment.

Much harder to enforce if the property is in another country. Legal fees etc in two countries too. Not worth the hassle.

I bet if you made a call to your bank with the same proposal as in 2007, you wouldn't get the loan.


Steven
www.bluewaterfp.ie

 

[Bronte]

New rules have come in which act as a barrier to people funding a property in one currency with income in another currency. That has complicated things.

Would it not be common enough for English people to purchase property in Spain and France with loans from British banks. There is also a long history of Irish/UK banking, so much so that BofI and I think AIB too, used to have branches in the UK. They are after all our largest trading partner never mind the other links.

 

[Bronte]

2) I don't believe anything estate agents say
.

But you did say he was a friend of yours.

 

[Brendan Burgess]

But you did say he was a friend of yours.

An auctioneer told a friend of mine

I don't see any reason for the auctioneer to lie in this case. So it's quite possibly a case of misunderstanding from the UK bidder to the auctioneer or from the auctioneer to my friend.

Brendan

 

[LS400]

Much harder to enforce if the property is in another country. Legal fees etc in two countries too. Not worth the hassle.

I bet if you made a call to your bank with the same proposal as in 2007, you wouldn't get the loan.

@steven

Made that very call today, as, to me and my needs, I have a keen interest in UK Property... and yes, Your spot on Steven.

But, without going too far off the topic, and straying into speculation on property, from a logistics end, I see UK as a much safer bet.
I dont get it that, he is quite happy to lend for property here and take the risks here, and yet not in a proven stable economy. Barr the problem in the early eighties, (and every country has their cycles) if I were Mr Banker lending to 100 properties in UK or here, I know where I would be lending to.

 

[LS400]

Apologies, mucked up on the quote above,, Please click expand to see reply!!