Re-mortgage of Irish property while living abroad

SomeRandomer

Registered User
Messages
17
Hi - a relative of mine lives abroad (in Europe but not the EU) and has an apartment in Dublin that's rented out. She spoke to AIB a few weeks ago inquiring about re-mortgaging, and the AIB person told her that it wouldn't be a problem living abroad, all she would need was a credit check from the country she lives in.

She then rang AIB back a few days later with the intention of doing the re-mortgage application over the phone, but the person she spoke to that time told her they don't do re-mortgages for people living abroad as the property is seen as a buy to let.

So I'm wondering is this normal and also why the first person told her it wouldn't be a problem

- has anyone managed to re-mortgage a property when living abroad?
- do the banks see a rental property as a buy to let, and if so do they treat those differently when it comes to re-mortgaging?
- do any lenders offer re-mortgages when the owner lives abroad?

Thanks.
 

SomeRandomer

Registered User
Messages
17
Hi just wondering if anyone can answer this?

Would really like to know if anyone re-mortgaged an Irish property when living abroad.
 

RedOnion

Frequent Poster
Messages
4,074
What exactly are you trying to do? Switch lender, or release equity?

It's a rental, so it's a buy to let. That's how banks will treat it.

Banks will lend to non residents for investment, but the monthly rent usually has to be at least 1.2 times a stressed Mortgage payment (i.e. interest rate increased by 2%).

AIB will consider this, but they will treat it as a buy to let (which it is). I don't know they're exact criteria.

If your income is non Euro, it's complicated as it's treated as a foreign currency loan under the Mortgage Credit Directive. Having the rent being more than the stressed Mortgage repayment gets around that.
 

SomeRandomer

Registered User
Messages
17
Hi thanks for the update.

I should have been more specific - she's looking to switch lenders as the rate from her current lender (BoI) is pretty high and AIB do a good rate, 2.9 % variable if I remember correctly.
 

RedOnion

Frequent Poster
Messages
4,074
She might be better off switching to a fixed rate with BOI - 3% for a choice of terms, and just say nothing about it being rented.

Any other banks will treat as BTL and rate will be over 4%.
 
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