Q&A: Tell me more about your favorite Irish mortgage bank/broker
Many of you have read my various mortgage posts/forum topics, etc, that are sprinkled throughout the site. On a couple, I have written about the various hoops I had to jump through to secure a mortgage in Ireland. IT WAS NOT EASY! Far from it.
Back then (3 years ago - ish), I was reluctant to share bank info. I did not want anyone thinking that I supported one bank over another. I did not then, nor do I now. However, with the passing of that time, I don't mind sharing bank names. Maybe the negative experiences I had back then, do not apply in today's lending world. Is it possible that the silliness of applying for a home loan has improved? Maybe, haha 🙂
Today, you have Stephan B. to thank for asking a probing question related to bank lending. Here's what he had to say...
Hi Liam: What a great site. I'm looking for a mortgage for a home in Co Tipperary. You mentioned in your post to contact you to provide a few banks who are easier to work with for foreigners. Would you mind sending me that info? Cheers, Stephan
Hi Stephan,
Thank you for the email, and the kind sentiments. I appreciate the positive feedback.
Much of what I wrote on the site regarding mortgages is approximately 3 years old at this point. Most of that information is still very relevant, but I'm sure some of it has changed as time has passed. For that reason, the banks that I found favorable in 2014 may not be so anymore. However I'm quite happy to share the information with you.
All in all, it was a quite stressful experience. I remember that PTSB were my preferred lender, as they had the possibility of a 35 year loan (age permitting), while the others restricted the lending term to 30 years. Again, these things are likely to change over time, as bank policy and lending criteria are updated.
Your other main route of finance is via a mortgage broker. You'll find plenty to choose from with a quick web search, or a flick through an Irish phone book. I'm not sure what you're used to where you are from, but what I had been used to in the USA, was that a broker would act on your behalf, with no extra fees. They were paid a referral fee from the lender. This was not the case in Ireland. Brokers levied a fee of approx 200 Euros. The few that I spoke to indicated that this was a refundable fee in the form of a rebate, if I were to take out various insurance policies with their institution. I guess that's fine if their rates are good, but if not, then it somewhat restricts your ability to shop around for other deals.
If you're looking for impartial comparison information on this topic, https://www.ccpc.ie/ has a very useful set of mortgage tools.
I hope this helps. Let me know if you have questions.
Regards,
Liam
photo credit: Flickr/wikimediacommons
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Liam:
I had a few questions that maybe you or the Move Club followers could address…My wife and I are planning to move to Ireland (this summer in fact). We own an income-producing property (a small apartment building) here in the US that we were planning on keeping (I have someone to manage it in our absence), and using its monthly rental income (along with my guaranteed pension) as the basis for applying for a home mortgage in Ireland. However, what I’ve been told by the folks at KBC Bank is 1) only EU-sourced income may be used in a mortgage application, and 2) their personal mortgage limit is to satisfy (pay off) the loan by age 68, i.e., if one was 50 years old, it would be a maximum 18 year mortgage, etc. In my case, I’m 67, so the likelihood of paying off a mortgage (with interest) in one year seems to counter the idea of having a mortgage at all).
I am well-prepared to accept a different ‘system’ in Ireland in comparison to the US, but are there any Irish banks that would ‘waive’ the age restriction if one has a life insurance policy in place that is double (or triple) the loan amount being sought? Or, are there banks that offer someone my age a 10 or 15 year loan (making the monthly home mortgage payment an amount with which I am more familiar)?
Also, my monthly pension is guaranteed, and not tied to ‘market fluctuations’. Wouldn’t a bank see this guaranteed income as a positive asset (it’s not like I’m self-employed or subject to layoff) rather than a liability?
If it makes any difference in the calculations, I hold Irish citizenship, though my income is US-based.
Hi Kevin,
I don’t think citizenship makes a difference really. I’m Irish, and was given hell when applying a number of years back.
The banks in Ireland are centrally regulated by the gov’t. I’m not sure if the age restriction is part of that regulation or not, but it’s worth trying all the lenders. I have heard of the EU sourced income restriction in the past, but it makes no sense to me. Money is money 🙂
Have you tried contacting a couple of brokers? They’ll be easier to work with than the banks, and will have numerous contacts that they can get answers from.
Let us know how it works out if you don’t mind.
Cheers,
Liam
Kevin, if I may suggest, one possible option could be to mortgage your US property and then use those funds to buy something in Ireland. Perhaps you could discuss this with the US branch of an Irish bank who might be able to tell you how to do this efficiently. I am guessing many people have done something similar. In any case, good luck.
A broker that specializes in Ex pats getting mortgages in Ireland is IPS Financial Advice in Limerick
Darragh O’Sullinan.
Very helpful and knowledgeable. Gets paid by the bank. +353-61 469 884