How to get a mortgage in Ireland as a UK foreigner?

Thinking of moving to Ireland from the UK, and want to buy a home? Perhaps you’re already living there in rental accommodation, and are thinking of taking your first steps on the property ladder.

Whatever your plans, we’re here to help. Read on for a comprehensive guide to getting a mortgage in Ireland from the UK, with info for both residents and non-residents.

We’ll run through how easy/difficult the process is for UK nationals, what documents you’ll need, the fees involved, current mortgage rates in Ireland, and some Irish banks and lenders to check out.

Also, if you’re looking for ways to save money on currency exchange when sending a down payment or mortgage fees to Ireland, check out the money services provider Wise. You can send large transfers with Wise for low fees* and great mid-market exchange rates - making it ideal if you’re sending a secure international transfer.

Table of contents

Can you get a mortgage in Ireland as a non-resident? Getting a mortgage in Ireland from the UK after Brexit Mortgage eligibility criteria for UK citizens in Ireland Is it easy to get a mortgage in Ireland? Step by step guide on how to apply for an Irish mortgage as a foreigner Which documents do you need as a non-resident? How long does it take to get a mortgage in Ireland? Fees and costs for getting a mortgage in Ireland Mortgage arrangement fees Valuation fees Other fees and costs Irish banks or lenders offering mortgages to foreigners Mortgage rates in Ireland Can you get a UK mortgage to buy property in Ireland? Do banks offer Buy-to-Let (BTL) mortgages in Ireland? Remortgaging in Ireland Types of mortgages in Ireland Fixed-rate mortgages Variable rate mortgages Green mortgages Capital repayment and interest-only mortgages Final tips for getting a mortgage in Ireland as a non-resident Send the down payment and mortgage fees to Ireland with Wise and save money

Can you get a mortgage in Ireland as a non-resident?

It’s far easier to get a mortgage in Ireland if you’ve moved there, whether it’s to work, retire, study or start a business. It’s much more difficult if you’re not already living in Ireland, but not impossible.

Some Irish banks and lenders offer what is known as ‘non resident mortgages’. Although these are hard to find (partly because the Irish mortgage market is smaller than the UK) and difficult to successfully apply for.¹

You’ll have a better chance if you have a high income (paid in EUR ideally) and a large deposit, and if you have a provable connection to Ireland.¹

Still, you might need to do quite a bit of research beforehand, contacting numerous lenders to find out what they can offer and their requirements.

Otherwise, you may need to find alternative ways to finance the purchase, or wait until you’ve moved to Ireland to apply for a mortgage.

Getting a mortgage in Ireland from the UK after Brexit

As Ireland is part of the EU and the UK has now left, you might be wondering whether there will be any impact on how easy or difficult it is for UK citizens to get a mortgage in Ireland.

The good news is that Brexit has made little to no difference to the process. This is because the UK and Ireland are both part of the Common Travel Area. This means that citizens from either country can live or work in the other without needing a visa or residence permit.¹

This means that if you’re a UK national living in Ireland, you’ll have the same rights to apply for a mortgage as an Irish citizen.

However, as we’ve mentioned, you may struggle to get a mortgage there if you’re still living permanently in the UK.

Mortgage eligibility criteria for UK citizens in Ireland

The criteria for mortgage applications will vary between lenders.

But generally speaking, you may need to meet the following requirements to apply for a non-resident mortgage in Ireland as a UK national:¹

• Be between 18 to 70/75 years old
• Have a salary of around €75,000 or above, paid in EUR
• Be employed, rather than self-employed or a business owner
• Have a minimum deposit or around 30%
• Have a good credit history
• Have both home insurance and life insurance.

The eligibility threshold for residents of Ireland is likely to be much lower, making it easier to get a mortgage if you’re living there.

Is it easy to get a mortgage in Ireland?

If you meet the criteria, getting a mortgage in Ireland can be relatively straightforward.

Be prepared for plenty of paperwork though, along with lots of checks and detailed questions about your income and spending habits.

However, there are some challenges that can make it more difficult.

For example, you might not be able to get a mortgage if:

• You have a poor credit history
• An unbalanced debt-to-income ratio
• Gaps in your employment history. Self-employed people sometimes struggle to secure a mortgage.

And for non-residents, the process is more complicated, with more requirements and higher thresholds for acceptance. You might need to show more documentation, or be asked for extra information - which can slow down the process.

There may also be the complication of your documents being in another language, where they need to be translated and certified.

Step by step guide on how to apply for an Irish mortgage as a foreigner

To give you an idea of what to expect, here’s a step-by-step look at the process of applying for an Irish mortgage as a foreign national:

1. Find a mortgage. You can either use a broker to explore your options, or apply directly with a bank or lender with a mortgage that suits your needs. The Competition and Consumer Protection Commission (CCPC) in Ireland has a mortgage money tool you can use to search options.
2. Hand over the paperwork requested and get a mortgage approval in principle document. This essentially means the lender is willing to lend to you ‘in principle’, subject to approval and final checks of the property you intend to buy. You may need to show this to estate agents in order to arrange property viewings or submit offers.
3. Find a property within your budget and agree on a purchase price with the seller
4. Apply for your mortgage formally. This involves submitting a full application along with your supporting documents.
5. Arrange mortgage protection/repayment insurance. Designed to ensure you can cover mortgage repayments if your income falls due to illness, unemployment or another reason, this is nearly always a mandatory requirement by lenders in Ireland.²
6. The lender will verify your information and may carry out their own valuation of the property you’re buying (there may be a fee for this).
7. If your application is successful, you’ll receive a formal mortgage offer.
8. Read the details, terms and conditions carefully before accepting the offer.

Once this is done, you can get on with buying your property in Ireland.

💡 Read more: Taking cash in or out of the UK: What are the rules?

Which documents do you need as a non-resident?

The exact documents you’ll need to apply for a mortgage in Ireland as a non-resident will vary between lenders.

But here’s an idea of what you’re likely to need:³

• Proof of identity - such as your UK passport
• Proof of address - such as a utility bill or bank statement dated within the last three months
• Proof of income/earnings - such as salary certificate signed by your employer, or an earning summary from your most recent tax statement.
• Proof of employment
• Bank account statements dating back at least 6 months,
• Proof of deposit, such as savings statements from the last year
• Documentation of any existing debts or financial commitments, such as credit card, loan and mortgage statements.

How long does it take to get a mortgage in Ireland?

Getting your approval in principle or AIP from a mortgage lender will usually only take around 10 days.

But it can take a few months to get your final mortgage offer and complete on the mortgage. The exact time it takes varies on a case-by-case basis.⁴

Fees and costs for getting a mortgage in Ireland

Applying for a mortgage in Ireland usually involves a few different fees. The main ones to know about are arrangement fees and valuation fees.

Mortgage arrangement fees

Also known as the product fee or completion fee, it’s the main fee for taking out the mortgage.

It’s charged on completion, and varies by lender, mortgage product and the size of the loan. Some lenders don’t charge any arrangement fees.

Valuation fees

If the mortgage company needs to carry out a valuation of the property, they may charge a valuation fee of around €200 to €300.⁵

It’s important to note that this valuation survey only looks at the value of the property, and won’t identify any structural, maintenance or other issues. You’ll need to commission your own building survey for that.

Other fees and costs

You may also encounter some of these other costs when applying for a mortgage in Ireland:

• Broker fees (if you’re using a broker) - these costs vary by provider, so you’ll need to get quotes.
• Mortgage protection/repayment insurance - you’ll need to get a personalised quote.
• Transfer fees - if you need to make payments between countries to pay the down payment or the fees above, you may incur fees.

Irish banks or lenders offering mortgages to foreigners

If you’re a legal resident of Ireland and you’ve been there for a sufficient amount of time, you should have access to the same mortgage products as Irish citizens. This means you can choose from all of the country’s banks and lenders which offer mortgages.

But your choice will be much more limited if you’re still living in the UK and are looking for a non-resident mortgage.

One option to try is Permanent TSB. One of Ireland’s major banks, it offers Buy-to-Let mortgages to non-residents.⁶ You’ll need to contact the bank to find out whether it can offer you a residential mortgage if you’re not living in Ireland, and what the requirements are.

Ultimately though, the decision about who is eligible for a mortgage or home loan is made by the institution. It’s worth contacting them for a chat about which products might suit you - or enlist a broker to help.

💡 Read more: How to transfer large sums of money between bank accounts?

Mortgage rates in Ireland

As of May 2024, the average mortgage rate in Ireland was 4.17%, with first-time buyers able to get fixed rates under 4% from major banks such as PTSB and Bank of Ireland.⁷

Remember though that mortgage rates fluctuate regularly - so you’ll need to check the updated rates when you’re ready to apply for your mortgage.

The rate you’re offered will also depend on your circumstances and eligibility, the amount you’re borrowing and how much of a deposit you have.

Can you get a UK mortgage to buy property in Ireland?

It may be possible to get a mortgage in the UK to finance your property purchase over in Ireland. But not all UK banks and lenders offer what are often known as ‘overseas mortgages’, so you’ll need to do some shopping around.

You could also look at remortgaging an existing property you own in the UK, borrowing more to raise funds for your purchase in Ireland. Crucially, you should only do this if you can afford the repayments, and it could be a good idea to seek professional financial advice.

Do banks offer Buy-to-Let (BTL) mortgages in Ireland?

Yes, a number of banks offer Buy-to-Let mortgages in Ireland. These are mortgages designed specifically for buying Irish property as an investment, which you intend to rent out to tenants.

One example is Permanent TSB, which offers Buy-to-Let mortgages to non-residents looking to invest in Irish property.⁶ However, you might find that Buy-to-Let mortgages in Ireland for non-residents tend to have higher interest rates.

Remortgaging in Ireland

It’s also possible to remortgage your property in Ireland. You may want to do this to get a new mortgage once a fixed-term mortgage has ended, or to get better interest rates once you’ve built up equity in your home.

Remortgaging can also help you borrow more money, such as to fund another property purchase without having to sell your first property.

You’ll just need to make sure you can afford the repayments and aren’t overstretching yourself.

Types of mortgages in Ireland

There are a few different mortgage types available in Ireland, and it’s important to choose the right one for your circumstances.

The main types to know about are - fixed-rate mortgages, variable rate mortgages and green mortgages. There are also buy-to-let mortgages, which we’ve already covered above.

Additionally, there are different ways to repay, including capital repayment and interest-only options.

Fixed-rate mortgages

A fixed-rate mortgage has a fixed interest rate for a set period, which in Ireland is usually 2, 5 or 10 years. This means you’ll know exactly how much you’re repaying each month.

Once the fixed term ends, you’ll usually be moved onto a variable interest rate. At this point though, you can choose to remortgage - either with the same lender or an alternative.

Variable rate mortgages

This type of mortgage has a variable interest rate, which is linked to ECB (European Central Bank) interest rates. With variable rate mortgages, your monthly payments may rise or fall.

Green mortgages

A relatively new kind of mortgage in Ireland, a green mortgage offers discounts for applicants buying or self-building energy efficient homes which meet a Building Energy Rating (BER) of B3 or above.⁴

Capital repayment and interest-only mortgages

There are also mortgages which vary based on the way you make repayments. Capital repayment is where you pay the amount you’ve borrowed plus interest, while interest-only is where you just pay off the interest.

💡 Read more: The best UK banks for sending money abroad

Final tips for getting a mortgage in Ireland as a non-resident

To stand the best chance of getting accepted for an Irish mortgage as a non-resident, bear these tips in mind:

• Try to build up a credit file or some form of financial footprint in Ireland, such as opening an Irish bank account. This may mean you need to wait until you’ve moved to the UK.
• Ensure you have a large enough deposit
• Get tailored advice about suitable mortgage products for non-residents and foreign applicants
• Make sure you have all your documentation in order, especially relating to income, employment and savings.

Send the down payment and mortgage fees to Ireland with Wise and save money

If you’re sending your deposit and mortgage fees to Ireland from the UK, you may incur hefty transfer and exchange fees when converting your British pounds to euros (EUR). This is where Wise and the Wise account can help you save money.

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Here’s an overview of the main benefits for using Wise:
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Sources used:

1. Online Mortgage Advisor - Getting a Mortgage In Ireland
2. CCPC - Buying a home step-by-step guide
3. Mortgages.ie - First Time Buyer Step by Step Guide
4. Switcher.ie - Your complete guide to mortgages in Ireland
5. Zurich - All the costs of buying a house in Ireland
6. PTSB - Mortgage Required Documents
7. Irish Examiner - Irish mortgage rates remain amongst highest in Eurozone despite falling to nine-month low

Sources last checked on date: 05-Sep-2024