The Irish mortgage market is fairly similar to that in the UK, and you should have no problem securing an Irish mortgage on your property in Ireland.
As Ireland uses the Euro, you will still face exchange costs on your monthly payment and have the risk of the payments varying as the exchange rate changes, but it may be possible to find a lender who will give you a mortgage in pounds sterling to avoid this.
It’s worth shopping around and also seeing if you can find any mortgage lenders who operate in both the UK and the Republic of Ireland, as they may offer good deals for UK buyers in Ireland.
Getting A Mortgage In Ireland
The mortgage market in Ireland offers a similar range of products to those available in the UK. There are a few minor differences but you should be able to Irish lenders offering all of these types of mortgages:
- Fixed & Variable Rates
- Repayment
- Interest-only
- Up to 100% of property value
- Self-certification (non-status)
- Flexible
Click here to see explanations of all types of UK mortgages here
Most lenders calculate monthly repayments based on affordability, not income multiples.
Typically, they will calculate your loan so that your monthly payment is not greater than 30% – 40% of your net income after other credit commitments.
It’s worth remembering too that as Ireland is in the Eurozone, its interest rates are controlled by the European Central Bank. These rates have historically been slightly lower than those in the UK, which can make for competitive mortgage rates.
However, there is no guarantee that this will continue and you should factor in any exchange costs on top of the basic mortgage payments.
At the time of writing the general outlook for getting a mortgage in Ireland is that you have to have strong connections there and pay at least a 40% deposit and have 6 months mortgage payments up front.
If You’re Employed
If you are employed and are applying for a prime (status) mortgage, you will need to be able to prove both your incomings and outgoings:
- Last 3 months’ payslips
- Last 3 months’ bank statements
Depending on your lender, you may also need to provide a P60, an employer’s reference and statements covering any other mortgages or loans and credit agreements you have.
If You’re Self-Employed
Self-certified mortgages are available in the Republic of Ireland, providing a practical option for those whose incomes are irregular or hard to certify.
It’s worth noting that lenders may still need to see evidence of income into your current account, even if they do not need to see your business accounts.
Additionally, for those claiming higher levels of income, mortgage lenders may still ask to see your full business accounts.
Rental Income
If you are buying a residential property as a private buyer, potential rental income will not be taken into account by Irish mortgage lenders.