Terrible troubles getting a mortgage

stevenwright

I'm having terrible trouble getting a mortgage and hope you can make some recommendations.

Currently I live in the UK in a house rented from family and work all over Europe. I'd like to buy a house in Ireland because I can get far more for the same money and a better quality of life. Unfortunately I can't get anyone to lend to me.

My kids are pretty young (5, 3, 1) and my wife depends on her family as I'm away, for this reason we'd move gradually spending more and more time in Ireland as they got older.
We have some savings (about €25k) and the plan would be to buy a €50k house, invest €10k cash, and get a €40k mortgage. With a salary of around €75k this seems very affordable.

Although I've seen several houses that I like everyone I've spoken to about a mortgage seem unwilling to lend. The main issues seem to be a) I'm not already living in Ireland, b) the company I work for is in the UK.

Buy to let mortgages have been suggested by a number of brokers but as I'm not earning over €100k I don't meet the criteria (and I don't actually want to let the property).
Renting for three months so that I'm applying as an Irish resident has been suggested but this seems a very expensive way to tick a box.
The company I'm working for is actually a multinational, getting a letter saying they're happy for me to live in Ireland wouldn't be an issue but I'd rather they didn't pay me in Euros via their Irish arm until we've completely moved.


Any suggestions? All I really want is to buy a house that's well within my means with a 20% deposit down and with a mortgage less than one year's salary for my family to live in. It didn't seem that crazy before I spoke to the banks..

Thanks

You have the means to put down a larger deposit, are you willing to consider doing so? Might well be the most efficient use of the savings too. Once in Ireland save regularly with a credit union, they are quite reasonable with personal loans should the need arise.

If you want to buy you can make this happen

stevenwright

I'd be absolutely willing to put down a larger deposit, up to €18k would be fine. Equally I'd be quite happy to go with the €10k deposit and pay the first years mortgage payments upfront.

Do you know anyone who might help if I did put down a larger deposit? As I mentioned no mortgage broker or bank that I've spoken to so far is interested once they discover I'm outside Ireland now and will continue working for a UK company. Telling them I wouldn't be moving in immediately seems to move us to a buy-to-let discussion and I dont want to let.

padser

stevenwright wrote: »

I'd be absolutely willing to put down a larger deposit, up to €18k would be fine. Equally I'd be quite happy to go with the €10k deposit and pay the first years mortgage payments upfront.

Do you know anyone who might help if I did put down a larger deposit? As I mentioned no mortgage broker or bank that I've spoken to so far is interested once they discover I'm outside Ireland now and will continue working for a UK company. Telling them I wouldn't be moving in immediately seems to move us to a buy-to-let discussion and I dont want to let.

For the amount of money you need (which could be as little as €30k) I'd consider seeing if you can get a personal loan rather than a mortgage. You might find they have less hard and fast rules as they are generally for smaller amounts.

Also, why tell them you wouldn't move in immediately?

Indeed, if you are not buying to let it is owner occupied, not moving in immediately isn't an issue unless you can't afford other living arrangements, don't tell the banks too much.

The_Morrigan

OP, you don't meet the criteria for lending and you shouldn't get a mortgage unless you do. Your options here are to buy without a mortgage or wait until you can meet the lending criteria.

Victor

Try talking to the banks that have operations in both jurisdictions. Ulster Bank/NatWest, Bank of Ireland/Bristol & West or AIB/First Trust.

stevenwright wrote: »

Equally I'd be quite happy to go with the €10k deposit and pay the first years mortgage payments upfront.

I'm not sure of the logic of this. Indeed, it may raise a flag with lenders - that the risk being that you will pay for one year and then not pay.

Augeo wrote: »

Once in Ireland save regularly with a credit union, they are quite reasonable with personal loans should the need arise.

Credit unions won't give loans for property.

stevenwright

Victor wrote: »

Try talking to the banks that have operations in both jurisdictions. Ulster Bank/NatWest, Bank of Ireland/Bristol & West or AIB/First Trust.

Thanks. I'll give these banks a call tomorrow.

Augeo wrote: »

Indeed, if you are not buying to let it is owner occupied, not moving in immediately isn't an issue unless you can't afford other living arrangements, don't tell the banks too much.

I won't mention not moving in immediately.

Victor wrote: »

I'm not sure of the logic of this. Indeed, it may raise a flag with lenders - that the risk being that you will pay for one year and then not pay.

I'll suggest a larger deposit and nothing more.

MouseTail

Victor wrote: »

Credit unions won't give loans for property.

They do, its irrelevant for OP as he wont meet any common bond criteria though.

muchos04

Hi OP,

Just wondering how you're getting on as I'm in a similar situation!

Muchos04

Icepick

Get a loan from a UK bank then.

muchos04

Icepick wrote: »

Get a loan from a UK bank then.

Icepick how do you mean get a loan from a UK bank??

What bank do you know of who is willing to give a loan on an irish property??

Let me know!