Applying for a Mortgage in Ireland: A Helpful Guide for Foreign Nationals

2023-06-08

If you are a foreign national interested in buying a home in Ireland, you might find the process a bit challenging. The Irish mortgage market can be complex, and there isn't always enough information available specifically for foreign nationals. At Which Mortgage, we understand that this can be overwhelming, so we've created a comprehensive guide to assist you in navigating the mortgage process and embarking on your homeownership journey.

1. Can I get a mortgage in Ireland as a foreign national?

Absolutely! Lenders approve mortgages for foreign nationals, and we have successfully supported many individuals through their mortgage applications, from start to finish.

2. What requirements do I need to meet when applying for a mortgage?

The specific criteria may vary depending on the lender, but generally, you will need to demonstrate that you have been residing and working in Ireland for a minimum period (e.g. 1 year). Additionally, you will need to prove that you are legally resident in Ireland, which can be shown through your Stamp 1, Stamp 1G, Stamp 4, or a passport from an EU/EEA country.

To assess your ability to afford mortgage repayments, lenders will consider factors such as your creditworthiness. This involves conducting credit checks, reviewing your bank statements and proof of income, and examining your household cash flow statements and bills to ensure that your monthly repayments will not exceed your income.

3. How much can I borrow?

The Central Bank of Ireland has established mortgage measures that limit the amount you can borrow. These limits include Loan-to-Value (LTV) and Loan-to-Income (LTI) limits.

LTV limits require you to have a minimum deposit amount before you can secure a mortgage. The specific percentages depend on whether you're a first-time buyer or a second and subsequent buyer (10%) or an investment property buyer (30%).
LTI limits restrict the amount you can borrow based on your annual gross income. First-time buyers can borrow up to 4 times their gross income, while second and subsequent buyers can borrow up to 3.5 times their gross annual income.

4. How do I start my mortgage journey?

To kick off your mortgage journey, there are a few steps you can take:

Use a mortgage calculator: Begin by using a mortgage calculator, like the one we've developed at Which Mortgage specifically for foreign nationals. This tool will provide an overview of your potential monthly repayments and help you explore different mortgage offers. It enables you to make informed decisions about your borrowing capacity.

Organise your finances: Lenders consider your financial circumstances when assessing your affordability. Start by creating a detailed budget that outlines your income and expenses. By understanding your budget and sticking to it, you can begin clearing debt and saving for your deposit and other mortgage costs.

Gather your paperwork: Lenders review your mortgage application thoroughly to ensure that you can afford your mortgage. it's crucial to provide them with a clear understanding of your financial situation. The required paperwork may vary, so our team will guide you on the specific documents you need to submit with your application.

As you explore the mortgage market, you will come across various offers but not all of them will suit your needs and circumstances. That's where Which Mortgage can assist you. We have partnered with lenders in the Irish mortgage market, allowing us to help you identify the product you're looking for and find the best rate available.

Get in touch with us today for a confidential and no-obligation chat.