ROI Mortgage Lender

declanmcc

Just a general query really.

Has anyone ever gone with, or is it even possible to go with a Southern Ireland mortgage lender for a Northern Ireland property?

Lindsay-Lou

Last time i enquired into this i was told i wouldn't be able to get a mortgage (northern for a southern house) I'd have to take the money out as a loan. though i didn't pursue it in a great deal of depth so i could well be wrong

rd_ea

I'm an EA - have never heard of anyone doing this but doesn't mean its not possible! Seems unlikely though

caravanshaker

I'd say no, I think it has been discussed on the mortgage board before, its too risky, if you borrow £100,000 from a mortgage lender now, its effectively €126,000 now but when the mortgage matures the exchange rate could be 1.5 so to repay the 100k sterling you'd be repaying 150k euro instead of 126k euro

probably not explained very well but thats the reason why getting euro or dollar mortgages on uk properties was regarded as a no-no before the credit crunch...........as I say theres been a lot of posts on the mortgage board about it in the past

darrenpollock

Hi there
The reason that you can't get an ROI lender to advance money on a NI property and vice versa is the fact that a lender can only take a legal charge over a property in their own jurisdiction. It basicall means if you default on a loan secured on a property outside their area they can't repossess the property easily and they don't want the hassle.

Hope this explains.

seatzie

darrenpollock makes a good point I'd also like just to clarify what caravanshaker was talking about - if you were thinking of getting say Bank of Ireland to give you a euro mortgage on a Norn Iron property (i.e. the lender operates in both jurisdictions) to gain access to the lower ECB interest rate, that explanation is why generally they won't and why you shouldn't

there were in the past companies who would give you dollar mortgages etc but as mentioned with exchange rates it can be very very dangerous