Summary
1) If you are definitely going to sell your house and trade up, clear your mortgage now.
2) If you might want to keep the house and buy a new house and if €530k is enough, then clear the mortgage now.
3) If you might want to keep the house and buy a new house for more than €530k, then hold onto the savings.
You will need 6 months under your belt in your new job in Ireland to get the new mortgage from what I understand.With respect to option 1), are there any considerations in relation to being a returning expat that might inhibit ability for OP to get a new mortgage as opposed to moving the mortgage from one house to another? I note both civil servants it would likely be ok, but I imagine moving a mortgage from one property to another is easier than getting a new one. However, it would be an expensive option to purchase at 2.7%.
Your situation is quiet unusual which explains the polar advice.My main question is, a mortgage will more than likely be required and I am getting polar advise.
Your situation is quiet unusual which explains the polar advice.
To be clear, you are currently on a career break from permanent public sector jobs in Ireland, and working abroad earning a non-Euro salary?
And you plan to return to those public sector jobs?
This isn't a case that fits into any banks standard decision tree, so needs to get before proper credit underwriters.
Firstly, remember since 2016 there is a large legislative hurdle. The Mortgage Credit Directive means that a lender cannot advance a Euro mortgage against foreign currency income, unless the lender can also offer you interest rate hedging options (you don't have to take them, but the lender must be able to provide).
To the best of my knowledge, BoI withdrew from that market, so AIB / Haven are your only option.
What I've seen happen in a couple of cases is a bank providing mortgage as a "buy to let", and once you return home convert it to a PDH rate.
Or only being able to draw down mortgage once your first payslip comes through after returning.
I did a little asking around, and as far as I gather AIB / Haven are the only ones will really look at this before you return to Ireland. Once you're back here you shouldn't really have any trouble getting a mortgage with any lender on condition that first salary arrives before drawdown.Yes, we return in July 24 and resume work in September 24. The first payslip will be in mid Sept 24. We are both in permanent roles in the public sector. We want a max mortgage of €250k as it means we can strike balance between having a large budget but keeping the repayments at a comfortable level.
Yes this is correct.@Iklo22 is it correct to say that upon returning your job will have been held for you in the Public Sector for the last 5 years?
Separate to the mortgage, get advice on what to do with the ETF investments before returning to Ireland, or what the tax treatment might be if you hold onto them.I have some bonus money sitting in an S&P500 ETF. My wife had a few grand in an old account and he suggested if there was no need for it, to throw it in my ETF as a top up which we have done.
I asked about that and he said to leave them as they are as they are only worth €5k roughly or to cash them in once we become resident again and plough the cash into the AVC in a lump.Separate to the mortgage, get advice on what to do with the ETF investments before returning to Ireland, or what the tax treatment might be if you hold onto them.
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