How can I get £50k / €68.5k mortgage finance to buy in ROI?

Can anyone help?

I’m based in London, but really want to move to the Republic of Ireland (for a much better quality of life & the property is much more affordable)… after extensive research and a couple of trips… I have found an ideal property, a private sale for approx €105k - I have savings/investments of over €60k; the property needs approx €15k spent on renovations. So, (excl. fees) total sum = €120k… But, no matter what, I cannot find anywhere to obtain finance in ROI: although I only need approx €68.5k to make this happen! I’m self employed, initially I could continue to be by commuting for busiest work periods and stay rent free in London with family… therefore I’d be taxed in UK… after expenses my UK earnings are in the region of €34k, but ROI banks are stating that since I’m not resident they can only give an ‘investment / BTL’ mortgage, despite property in ROI becoming my main residence… BUT - same banks are saying that due to ‘new rules…’ to obtain such a mortgage I would need an income of at least €70k per year?!! (which is more than the total finance I’m after, which would be paid over 25 years?) Hence, I’m completely stumped. I have no credit cards, no debt, although I do dip into my agreed overdraft from time to time… also, I’m a first time buyer. I have contacted various UK banks, none of them want to finance anything in ROI, also various mortgage brokers, but still I’m getting nowhere.

Any suggestions would be hugely appreciated!

Many Thanks,

Do you have any relationship with an Irish bank ?

“quality of life” is of course subjective …why do you think it be better here? …are you moving to rural Ireland or Dublin? …just curious

You are well under the normal lending limits applied to Irish residents (worst case is max 80% LTV and 3.5x gross earnings), but since you’re not going to be an Irish resident those limits are moot.

I don’t really understand how you will canconsider yourself resident in Ireland but not for income tax purposes. You probably need to speak with an accountant who understands domicile and both tax systems.

For your budget it sounds like you’re planning a move to somewhere rural or stabby. Do you need good broadband?

If your main centre of interest is the UK you’re probably better off going through a UK bank.

Commuting to London is a PITA. I did it for a while but found it exhausting.

I’d suggest the next time you’re in Ireland to meet the local bank managers in the area face to face. You could also try low balling the vendor with a 60K cash offer, ready to close next week, blah, blah, they might not have any other offers on the table.

mr_anderson: thank you for your reply… no I have no relationship with an Irish bank? I bank in the UK via NatWest who are affiliated with Ulster Bank, however that means nothing, still have the €70k income hurdle…

EuroTom: thank you for your reply… rural Ireland, not Dublin. Subjective it is indeed! Peace, good natured people, laughter… I could go on…

Eschatologist: thank you for your reply… I really do not care where I am considered resident, the ROI banks have suggested I would be tax resident in Uk if still working in Uk, although I guess I could apply for citizenship of ROI and pay tax in ROI whilst deriving an income from UK? Yep, it’s rural although broadband just about reaches the house. All Uk banks I’ve spoken to state they will not lend for a property in ROI, even my own bank will not provide a loan for ROI (let alone a mortgage…)… I don’t intend to commute to London for v.long, but will have to do so initially…

Devilsbit: and thank you for your reply… Hmm, I could give that a try meeting them face to face, perhaps it might make a difference, although some banks, eg: KBC, have said they’d have to meet me face to face to ‘complete’ the transaction (before then going on to say I’d need to earn €70k p/a to qualify…), I have tried low ball offer to vendor (£65k) strangely they’ve not bothered to reply! They don’t have any other offers but are stuck on £75k…

How desperate is the vendor ?

Any possibility they would accept the cash upfront and the remaining balance over 7 years (with interest) ?

Citizenship is irrelevant and unnecessary.

Read this and work out where you’ll be resident for tax purposes:

citizensinformation.ie/en/mo … eland.html

I would advise against making these decisions casually. You can’t really just breeze back and forth. If you’re making a move to Ireland, do it for the right reasons - because you want to build a life here. Moving to Ireland can be a bit of a culture shock and there may several years of WTF.

Think about how sustainable your remote job is, and what you’ll do if you have to find work locally.

Aside from anything else, it will take a bit of effort to untangle yourself from the UK tax system - despite the dual taxation arrangements you’ll still be filing UK returns until you can convince them you’re really gone.

It used to be quite straightforward to buy a house in Ireland using a mortgage from an Irish bank before moving here, but lots has changed since the crash.

Eschatologist, thanks again.

I am not taking this lightly at all, it will be a huge change. Although I’m from London and am still based there now, I have lived in rural England for some time which can also have quite an element of WTF! …strangely you can get used to that and after a while not even think like that… I have a very solid plan in place, I do recognise that commuting will take a serious toll after a while. My core self employment is well established and will provide my financial backbone but I will be initiating multiple income streams after a time.

But, that I do not perceive to be a problem, the problem I have is, how can I obtain a mortgage or financing in order to pull this off initially? I do not need much, but it is an extra £50k that I do not have in my pocket, unfortunately! Do you have any ideas with regards to financing at all?

Much appreciated!

Move here, rent, apply for mortgage, buy house.

Lol!

…it does look like you might be right there… I’d certainly prefer to tie up the finances in advance of moving though… it is crazy how the banks have swung from lending too freely to being too restrictive! Bankers…

Repos are very difficult/time consuming/expensive in Ireland - there are people who haven’t been paying their mortgage in ten years who haven’t had their homes repossessed. Consequently the banks are applying reasonable due diligence.

It’s really not unreasonable that a bank would require you to be demonstrably resident in the country before giving you fifty grand. You’re likely to face additional issues from having an single unreliable income stream sourced from outside the state. If you really want to live here it shouldn’t be a problem - rentals in the sticks are cheap as chips.