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Overseas mortgage lending?

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  • 29-02-2008 6:23pm
    #1
    bostonian
    Closed Accounts Posts: 141 ✭✭


    Hi,

    Typically, are Irish banks willing to provide home financing for properties overseas? I'm interested in buying some property in South America.


Comments

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    #2
    bostonian
    Closed Accounts Posts: 141 ✭✭bostonian


    Anybody? *crickets*


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    #3
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    It is very hard to take a first legal charge over a property in another country, therefore most Irish banks will not lend to you on that basis. However, if you have another asset that you can use as security, the bank maybe more willing to help you out. In recent years, spanish properties have been very popular with Irish people and BOI have an arrangement with La Caixa http://www.bankofireland.ie/personal/borrowing/mortgages/property_in_spain/index.html


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    #4
    FA
    Closed Accounts Posts: 15 ✭FA


    Its not a good idea to borrow in ireland for a property in South America. The main reason is that if you borrow E200k, and that converted to USD300k. You use the USD300k to purchase a property and if 5 years decide to cash in. You could then sell the property for USD350k, which would leave you think that you made a profit of USD50k. Might not be the case, the currency could move against you, when you go to convert it back to Euro if might not be worth the E200k you borrowed. The other side of this is that the currency moves for you, and you could do very well.

    If a big risk with such a large amount of money, its kinda like taking a punt on the currency movements.

    Want more info let me know

    FA


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