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Northern Ireland mortgage - house in the Republic

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  • 13-01-2010 7:49pm
    #1
    sajama
    Closed Accounts Posts: 42 ✭


    I am hoping to take up a job in the North after I finish college. I had previously worked for this company on placement and I know they work with a pensions/mortgage company who offered my colleagues relatively good rates on mortgages. I'm just curious to know if I get a mortgage through this mortgage company up North would I be able to buy a house down South with it? (assuming that I was approved for the mortgage of course!)

    Accommodation is provided by the company I would be working for so I would not be intending to live in this house for a few years down the road, and would like to rent it out in the meantime. I am keen on getting onto the property ladder, especially with house prices the way they are at the minute...

    Or would I be better to stick with a mortgage company in the republic? I figure it would look better as a graduate that I would be renting it and therefore hopefully paying a part/most of the mortgage for the first few years from the rent money?

    I hope my question is clear enough - I'm not down with the mortgage lingo just yet! Basically my idea is:

    a) get a mortgage - possibly the best rate will be with a mortgage co. up north
    b) buy a house in my hometown in the south
    c) rent out said house while i live in company-provided accommodation
    d) pay off some/all of monthly mortgage payments using rent money
    e) in a few years, I think I would like to change career path, and then move into my own house with some of my mortgage already paid off...

    Does this sound realistic? I am a 21-year old and I know it will be difficult but I have always dreamed of having my own house and with my job offer for next year it would seem to be a perfect opportunity, if I can get a mortgage? I'd be looking for as much as possible - don't know if they offer 90-100% mortgages these days?


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    #2
    Victor
    Registered Users Posts: 78,360 ✭✭✭✭Victor


    Many lenders prefer to only lend in their own jurisdiction. Its what they are familiar with. Now, maybe they do lend in both jurisdictions, but that is something you will need to check. the likes of AIB, BoI or UB might be quite willing to work with you as they have operations on both sides. You do also face the additional risk of currency swings. Be wary of concentrating exclusively on one lender.

    If you won't be living there for a few years, are you sure you want to buy into a declining market?


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    #3
    sajama
    Closed Accounts Posts: 42 ✭sajama


    Victor wrote: »
    Many lenders prefer to only lend in their own jurisdiction. Its what they are familiar with. Now, maybe they do lend in both jurisdictions, but that is something you will need to check. the likes of AIB, BoI or UB might be quite willing to work with you as they have operations on both sides. You do also face the additional risk of currency swings. Be wary of concentrating exclusively on one lender.

    If you won't be living there for a few years, are you sure you want to buy into a declining market?

    Thanks for the reply Victor - that's a very good point about the currency...
    Yes the best thing to do might be pop in to a couple of the banks - probably the best way to find out what the odds of me even getting a mortgage are before overthinking all of the ins and outs of it.

    I just thought buying now and paying off some of the mortgage while I'm away (when I don't even have to pay rent myself) would be a good idea, as I assumed the housing market would start picking up again in a few years? Or is this a naive assumption? I would not be intending to sell it to make a profit or anything (unless the opportunity came up!) - just to have a house of my own to live in...


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