The Irish Property Bubble has been a key player in causing a remarkable contraction in mortgaging activities in the country, but it is now gaining more stability, since several banks have restarted lending with renewed policies, to buyers overseas, as well as to former expatriates, who wish to buy a new home in their homeland, to settle down later. Whatever be your reason to be a mortgage in Ireland, whether it is for Investment Planning, Future Planning or Business Scope in the real estate market here are the best answers you can get from the expert advisers.
How Morgaging Works For Non-Residents In Ireland
While it is not mandatory for expatriates or overseas investors to have any Irish Passport, it is radically easier for borrowers to have a smooth mortgaging experience, if they have a relative, solicitor or investment planning advisor who is an Irish citizen.
After the BREXIT agreement, there has been a rapid surge of UK-based citizens, as well as UK-based company owners to seek mortgaging advice in Cork, for buying new properties in Ireland, as a retirement plan, or companies that wish to have access to the EU market would wish to shift based into the country.
A mortgage is offered to only those non-Irish citizens who either are UK-residents or have registered a company in Ireland, that can be used to hold the property. For such companies, set up by non-Irish residents, a fee of €500 + VAT is incurred along with an annual fee for regulatory returns.
There is an age-limit of 55yo. Because the Mortgage has to be paid off by the age of 65yo. So a minimum timeframe of 10years is counted.
And this does not work for first-time property buyers, you must have a home or commercial space to your name, it may be anywhere else in the world.
The Facts and Figures of Borrowing – How Much Money Can You Borrow, at What Rate of Interest
The minimum mortgage amount offered to non-resident borrowers is €50,000. And the maximum loan amount is €500,000.
The borrowing limitations vary as per the background of the borrower. For non-resident individuals, the maximum borrowing limit is 65% LTV, and the maximum DTIR of 40%.
with a 35% to 40% deposit, showing the lender at least the first 6months of payment against the mortgage. This percentage fluctuates based on the location and type of property you wish to buy, as well as the overall circumstances go around the 3.1-3.75% range. And for investment properties, the rates can be tad 4%-5% higher approximately. Overseas Mortgaging comes with its own risks, given that these transactions are neither protected under the Financial Services Compensation Scheme nor has a Financial Conduct Authority regulation. Plus, there is no surety that they will behave any coverage from the home regulator of the concerned country. So be very careful. Consider having a professional consultant to guide you through.