Mortgages for SE returning citizens

martin18

Hello there, I'm pretty sure I know what the answer to this question will be but thought I'd investigate anyway just in case.

I have just moved back to Ireland from the US and am looking to buy a home out west. I'm a self-employed translator (online work) with all clients in the US. I've never paid taxes here as I left when I was a teenager. I do have a top-notch credit history in the US and tax records from there of course. But I'm guessing no Irish bank will offer me a mortgage based on those and I'm pretty much on my own.

Am I right? I would love to be wrong!

Appreciate any informed responses.

Trish56

Can you clarify where you intend to buy the property? Do you have any Irish Bank Accounts and if yes with whom?

martin18 wrote: »

Hello there, I'm pretty sure I know what the answer to this question will be but thought I'd investigate anyway just in case.

I have just moved back to Ireland from the US and am looking to buy a home out west. I'm a self-employed translator (online work) with all clients in the US. I've never paid taxes here as I left when I was a teenager. I do have a top-notch credit history in the US and tax records from there of course. But I'm guessing no Irish bank will offer me a mortgage based on those and I'm pretty much on my own.

Am I right? I would love to be wrong!

Appreciate any informed responses.

punisher5112

Have you enough for a deposit?
Could you look outside of Dublin and go for somewhere like Midlands or west where house prices would be much cheaper.....

Batgurl

punisher5112 wrote: »

Have you enough for a deposit?
Could you look outside of Dublin and go for somewhere like Midlands or west where house prices would be much cheaper.....

The original post says they are looking out west? But I’m
not sure what difference that would make to lending?

OP - how long have you been in Ireland? And as a self-employed person, are you now submitting your tax return to the Irish Revenue as a resident in Ireland?

The reason this is important is that most Irish banks need at least 6-12 months record of income in Ireland before they will lend to you.

And they likely won’t accept your foreign income so you’d need to show Irish income.

martin18

Hello there, thanks for the answers so far.

I've only been back in Ireland a month so far. Also my work is quite irregular, bunched heavily in the last 5 months of the year. All income is from the US, none from Ireland.

I do have quite a good capital gain from my house in the US that should allow a deposit of at least 50% on a nice home in Donegal or Sligo. Obviously without a mortgage though I'm looking at a lot less of a nice home.

I do have accounts at two banks in Ireland and have had them for donkey's years. I used to have a credit card with AIB but it was a very long time ago.

Batgurl

Once you’ve been living in Ireland for 183 days you are considered a resident for tax purposes and would be expected to file as a self employed worker at this stage. I don’t think it matters that your clients are based in the US but I would recommend getting an accountant to help you with this.

It’s something you might want to look into and do sooner rather than later as it will allow you to build up the history you need to get a mortgage with the bank earlier.

You mentioned you’d have a 50% deposit through capital gains; have you sold the property? Or would you be looking to leverage its value as collateral? Irish banks won’t take foreign assets as collateral for a mortgage FYI.

martin18

Thanks Batgurl!

Hoping to have sold my home in US by the end of the month - have accepted an offer.

When you say look into it sooner rather than later to build up the history, what exactly are you referring to? Anxious to begin asap on that front.

Do you see me being able to get a mortgage in the near future based on past history in the US? Or you think, as you suggested earlier, they would need me to have been resident 6-12 months here? (Because given that I have 0 Irish income residency is effectively what we are talking about.)

Batgurl

In my experience, Irish banks won’t consider any financial history you’ve built up abroad. It’s crap but it is what it is.

You’ll need to build up history as an Irish resident who pays their taxes here and has an income from an Irish company (even if that company is just you as self-employed) before they’ll lend to you here.

You should set yourself up as a sole trader or business, pay Irish taxes and have invoices for your Irish company paid into your Irish bank account ASAP. You don’t have to wait the 180 days.

When you have the cash from your house sale, transfer it over to Ireland as this will reduce the stress test a bank will place on your income for lending. Especially important without a steady income. But they still will be unlikely to lend until you are here at least 6-12 months.

Trish56

A few things you need to consider :

• Lenders are most definitely interested in your past credit history in the US and will ask you to submit a Credit Report from there. I would recommend you bring your last 12 months business/ personal current accounts together with savings history and a 12 month account for any loans you may have had there. You should also bring your last 2 years business accounts especially since you are continuing in the same business.
• To qualify for a mortgage as self employed you will need to submit 3 years accounts - KBC are the only bank that will consider your application with 2 years accounts.
• Credit Unions also do mortgages so it may be of benefit to lodge some of your savings there.
• If your Income is in Dollars - this may cause a problem - the only lender that will lend on non euro income is AIB or Haven which is the Broker arm of AIB. so again I think you should open an account with them.

martin18 wrote: »

Thanks Batgurl!

Hoping to have sold my home in US by the end of the month - have accepted an offer.

When you say look into it sooner rather than later to build up the history, what exactly are you referring to? Anxious to begin asap on that front.

Do you see me being able to get a mortgage in the near future based on past history in the US? Or you think, as you suggested earlier, they would need me to have been resident 6-12 months here? (Because given that I have 0 Irish income residency is effectively what we are talking about.)

martin18

Thanks ever so much, Trish56, very helpful.

Do you have any idea which lenders might be more receptive to my kind of circumstances?

Would you agree with Batgurl that I should start asking to be paid into an Irish bank account for my assignments? I hadn't been thinking of doing that as I plan to keep using my US credit card for as many expenses as I can (brilliant air mile rewards!). I'll also incur international transfer fees each time.

The issue of my income being in dollars - I don't actually mind taking on the exchange rate risk myself as I wouldn't take on a mortgage of a size that could break me if the XR went against me. But will the banks only want to lend to me in US$ anyway? (I have actually had an AIB account since I was a teenager though never borrowed from them and tiny balance only for years and years.)

Thanks again!

martin18

*Bump*... anyone? (tx)

Trish56

I mentioned in my post above about AIB and the Credit Union - have you contacted them ?

You will need the information I mentioned to bring with you such as your accounts for past 2/3 years, savings and banking history.

martin18 wrote: »

*Bump*... anyone? (tx)

martin18

Ah, okay, I'll start with them. Thanks a million!