I want to buy an apartment for my mum to live in rent free - do i qualify for first-t

viconia

[font=verdana, arial, helvetica, sans-serif]Not sure if this is the right place, but wanted to get my head straight before talking to a bank for a mortgage.[/font]

[font=verdana, arial, helvetica, sans-serif]I do not own a house and currently rent and live in the UK (am Irish). I want to buy an apartment for my mother to live in, in Ireland. My intention is to buy it and let her live in it (rent free) and pay the mortgage myself.[/font]

[font=verdana, arial, helvetica, sans-serif]I am unsure whether I qualify for a first time buyers mortgage or is it a buy-to-let situation? However, as i am not "letting", and my steady salary will comfortably pay the mortgage, I'm not sure whether i qualify for that.[/font]

[font=verdana, arial, helvetica, sans-serif]The apartments I'm looking at, are in the region of €80k-€120k. According to the mortgage calculator on "buy to let", I am able to get a mortgage for up to €370,000 (assuming 30% deposit)[/font]

[font=verdana, arial, helvetica, sans-serif]Furthermore, I know that buy-to-let requires a higher deposit, but would it change anything by explaining to the bank of my intentions or would that work against me? I assume their risk is me not being able to find a tenant/high enough rent, and so knowing it's coming from my salary should be okay for them?[/font]

goz83

You're not buying to let it out, so best not go with that line. You're buying to own it and will be letting your mum live there. If you're based in the UK, you might want to chat to an accountant/tax advisor before going about a mortgage

davindub

viconia wrote: »

[font=verdana, arial, helvetica, sans-serif]Not sure if this is the right place, but wanted to get my head straight before talking to a bank for a mortgage.[/font]

[font=verdana, arial, helvetica, sans-serif]I do not own a house and currently rent and live in the UK (am Irish). I want to buy an apartment for my mother to live in, in Ireland. My intention is to buy it and let her live in it (rent free) and pay the mortgage myself.[/font]

[font=verdana, arial, helvetica, sans-serif]I am unsure whether I qualify for a first time buyers mortgage or is it a buy-to-let situation? However, as i am not "letting", and my steady salary will comfortably pay the mortgage, I'm not sure whether i qualify for that.[/font]

[font=verdana, arial, helvetica, sans-serif]The apartments I'm looking at, are in the region of €80k-€120k. According to the mortgage calculator on "buy to let", I am able to get a mortgage for up to €370,000 (assuming 30% deposit)[/font]

[font=verdana, arial, helvetica, sans-serif]Furthermore, I know that buy-to-let requires a higher deposit, but would it change anything by explaining to the bank of my intentions or would that work against me? I assume their risk is me not being able to find a tenant/high enough rent, and so knowing it's coming from my salary should be okay for them?[/font]

You might check out UK mortgages in Sterling for Irish property as well, a Sterling mortgage will carry a bit of risk of currency fluctuation and may be hard to find someone who do them, but if Sterling recovers this year you could be talking 10% of a difference.

RobbingBandit

I assume a buy to let application would require extensive research and evidence that the rental income would cover or at least predominantly contribute towards the mortgage repayments.

newacc2015

Do you earn at least €100k plus? If not you wont get a mortgage as a non-resident. You may need a deposit of around 40%

http://www.irishtimes.com/life-and-style/generation-emigration/mortgages-for-emigrants-buying-a-house-at-home-in-ireland-1.1991001

Also BTL mortgages here have a rate of around 4-6%. So can you afford to be paying €16-25k in interest alone per year?

Turtle_

Your mother may also be subject to CAT on free use of the property

d1980

newacc2015 wrote: »

Do you earn at least €100k plus? If not you wont get a mortgage as a non-resident. You may need a deposit of around 40%

http://www.irishtimes.com/life-and-style/generation-emigration/mortgages-for-emigrants-buying-a-house-at-home-in-ireland-1.1991001

Also BTL mortgages here have a rate of around 4-6%. So can you afford to be paying €16-25k in interest alone per year?

I think he only looking for loan of 100k so interest bill will be a lot less than that

cloloco

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Based on the fact that you are not buying the property as your principal residence its unlikely that you'll be treated as a first time buyer, more likely an investor. Best to check with a mortgage adviser. As you are not a resident you might have additional criteria that need to be met.

As far as I know to qualify as a FTB for stamp duty purposes you need to be buying the property to live in yourself.