Remortgaging Irish home to buy an investment property in UK

D

Dddoyle

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I am looking to buy a property in the UK. I have a mortgage with BOI re my PPR in Ireland and was looking to release some equity from that to fund the purchase. However, BOI won't release equity to purchase a property outside Ireland.
Can anyone please advise of brokers, banks, etc in Ireland who would deal with a property purchase in the UK? Or do I need to just contact a UK bank?
Thanks, D
 
what percentage do you hope to borrow? that is the biggest question any Irish lender will ask and the second question is how much equity have you on the house? Is the equity (much) more than the amount you hope to borrow?

I you live in Ireland and are buying as investment in UK, then most if not all UK banks will have no interest in your business.
 
Looking to buy a flat for £50,000 - £60,000 in Dundee. Hoping to borrow 80%+. We have lots of equity in our house. Mortgage balance €150k, house worth €550k - €600k.
 
Hi D

You should switch lenders. I think another lender will probably give you a mortgage of €300k if you want it.

Of course, if you have a cheap tracker, this would not be a good idea.

If a mainstream lender won't do it, Pepper might.

It might also be worth talking to a mortgage broker in the UK. It would be better to borrow in sterling to finance a sterling asset, if at all possible. But it may not be possible.

Brendan
 
Brendan Burgess said:
It would be better to borrow in sterling to finance a sterling asset
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That would be true for a purely financial asset, with a property its not so clear cut. It depends on what the property will be used for.


If you will be renting the property, then it will be safer to borrow in Sterling, if on the other had the repayments will come from your earnings in Ireland, safer to borrow in Euros. It is safer to borrow in the currency in which the income being used to repay the borrowing arises.

If you expect to sell in the short term safer to borrow in Sterling, if you will be holding for a longer period, that aspect is less important.
 
cremeegg said:
if on the other had the repayments will come from your earnings in Ireland, safer to borrow in Euros. It is safer to borrow in the currency in which the income being used to repay the borrowing arises.
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Hi cremegg

A very interesting point. I had assumed it was for a buy to let.

But let's say it's for a holiday home so that there will be no income at all from it, but just expenditure.

Say it costs £60,000 or €65,000.

Scenario 1 - sterling rises in value.

If I have borrowed in euro, I won't care - except that my asset has risen in value, and my liability has remained the same.
If I have borrowed in sterling, I will have to find some more euros to meet the repayments. The asset and the liability will have risen together, so my wealth in unaffected.

Scenario 2 - sterling falls in value

If I have borrowed in euro, I won't care - except that my investment has fallen in value.
If I have borrowed in sterling, it will cost me less euro to make the repayments.

Not sure. I suppose the answer is don't borrow in either currency to buy a holiday home.

But if the OP is borrowing to buy a student flat for his kids while they are in college. It will probably become an investment so probably borrow in sterling.

Brendan
 
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