As Brexit gets closer – there seems to have been an increase in people in the UK looking to buy property in Ireland.
Some of these could be Irish people moving back home , others are just UK citizens wanting to leave the UK.
The global pandemic has also increased the numbers of Irish returning home after being abroad for a few years.
Here are some issues you will need to consider before you buy in Ireland.
- It is possible to buy a house in Ireland while you are non-resident?
- Can a non-resident get a mortgage in Ireland?
- What’s the Best Way to Transfer Money to Ireland?
It is possible to buy a house in Ireland while you are non resident ?
Ther are no restrictions on non-residents buying property in Ireland. However – owning a residence in Ireland does not entitle the owner to residency. Residency and the right to remain in Ireland depend on an individual’s particular circumstances. More on that here.
If you are an EU / UK citizen there are no restrictions on moving to live in Ireland .
Can a non-resident get a mortgage in Ireland?
It will be easier to get an Irish mortgage whilst living in Ireland.
After moving to Ireland – you will usually need to be living here for at least 6 months and been in employment for at least 12 months before most lenders will consider you for a mortgage.
But getting an Irish mortgage when you live elsewhere is not impossible.
In 2016 a new EU rule was introduced that restricts lending in foreign currencies. The “Mortgage Credit Directive” requires lenders to monitor exchange-rate fluctuations on foreign currency mortgages.
This has resulted in some Irish banks not even considering lending to people who live outside Ireland and don’t have most of their income in Euros.
Some banks, including AIB and Bank of Ireland, have not entirely ruled out lending to people living in non-euro-zone countries such as the UK, Australia , USA and Canada.
Allied Irish Bank will accept mortgage applications from people employed abroad who plan to live in Ireland straight away on a full-time basis.
For applicants employed abroad and moving to Ireland in the future , AIB will assess them as Buy To Let (BTL) applications. (This means higher interest rates and larger deposit requirements).
PTSB will only offer buy-to-let loans to British and Irish citizens who are resident in a euro-zone country. (higher rates).
Check the latest Mortgage Rates in Ireland here
Protecting against exchange rate changes.
There is always some risk when sending large amounts of money overseas because exchange rates are always moving. If your savings are in non-Euro currency then a change in the exchange rate of just 2% would alter the price of a €400,000 house by €8000. We recommend that people should use a dedicated currency exchange company, rather than a bank to exchange and transfer money. (The exchange rates are better.)
A currency specialist will work with you to help protect your property purchase budget from currency fluctuations.
You should be thinking about currency exchange even before you have all the money in place to purchase a house. You can set exchange rates in advance to remove any worries about sudden rises or falls in currencies that could impact your transaction.
For example – you can set up a “Forward contract”.
A forward contract allows you to lock in today’s exchange rate (or very close to it) – but with the actual exchange not happening until maybe a year in the future.
It usually requires a deposit of about 10%.
A forward contract offers peace of mind. Once you have had a sale offer accepted it can take 2 to 4 months to complete and get the proceeds. Knowing that during that time you won’t be hit by moving exchange rates, you can be sure you’ll have enough after conversion to Euros to be able to complete the purchase in Ireland.
Currency specialists that can deal with large money transfers to buy a property in Ireland.
Currency Solutions is a UK based currency specialist firm that is authorised by the UK Financial Conduct Authority. They have many years of experience dealing with people moving to Ireland and other EU countries.
You can call them on their UK number 0044 (0)20 7740 0000 or on their Irish number 01 431 1344 .
Ask for the Money Guide Ireland contact – Ernie Enver. Ernie or his team should be able to give you a quick response to any queries.
Or you can visit the Currency Solutions website here for a free no-obligation quote and they will call you back.
Garton Global Payments
Garton Global Payments is based in London and was set up by Irishman Niall Walsh . They have plenty of experience in dealing with house purchases and money transfers between Ireland and the UK.
Garton Global Payments get exchange rates directly from the interbank market, but having a much lower cost base than the banks means they can offer better rates for you. Garton Global can allow you to secure an exchange rate for up to two years in advance of delivery.
All payments and transfers are carried out on the CurrencyCloud platform which is fully authorized and regulated in the UK, EU, US, and Canada .
You can request a quote online or call the Garton team direct on (UK) +44 20 8004 5841.
Fexco is based in County Kerry, Ireland and is authorised as a payment services provider by the Central Bank of Ireland. They are also regulated by the Financial Conduct Authority for the conduct of payment business in the UK. Fexco was set up in 1981 and processes upwards of €14bn in transactions per annum. Fexco has dedicated dealers to explain the options available to you and help reduce your exposure to fluctuating exchange rates. You can get a quick quote online at the Fexco Website
FairFx are London based foreign exchange specialists and they also have an office in Dublin. FairFx has been operating since 2007 and is regulated by the UK Financial Conduct Authority. You can get an initial quote for an international money transfer on their website . Alternatively, you can call FairFX on their UK number (0044) 0207 858 2001
Other Useful Information
Read more here about Legal Costs and Other Fees When Buying a House in Ireland
The Irish housing market has rebounded in recent years. House prices are increasing across all housing types and in all counties. Daft.ie and Myhome.ie are good resources for anyone thinking of buying a house.
You can also check out Ireland’s Residential Property Price Register where you can compare recent purchase prices on specific locations.