first_imgPascal Curran, Advice FirstIrish Banks have “rowed back” on a controversial move to cancel mortgage lending to house-hunters paid in sterling, says Donegal financial expert Pascal Curran.Lenders in the Republic had withdrawn mortgage services to people paid in non-euro currency following the introduction of a new EU directive in March.The banks’ axing of what are classed as ‘foreign currency mortgages’ left cross-border workers who receive sterling payment with no borrowing options to buy new homes in the Republic. Lenders refused to entertain applications from those seeking such mortgages in recent weeks, citing the introduction of the European Mortgage Credit Directive.However, several major lenders have now “loosened the restriction”, according to Pascal Curran from Advice First Financial in Letterkenny.He said: “The initial knee-jerk reaction by the banks was to shut down all mortgage lending to those earning foreign currency. This move effectively cut thousands of potential customers living in the border areas out of the loop.“Lenders were telling us a few weeks ago that they would also withdraw mortgages offered in principal should ‘letters of offer’ not be completed by a certain deadline,” he added. Mr Curran said some the banks are now “rowing back” on their initial blanket blackout of ‘foreign currency mortgages’.“Obviously some of the banks have now found an interpretation of the European Mortgage Credit Directive that works better for them and their customers.“It’s fantastic news for many house-hunters living in the south and working in the north that at least some lenders are offering what were classed as ‘foreign currency mortgages’ once again.”However, lending criteria is stricter than it was previously, he said.“Although the situation appears much less bleak than it did several weeks ago, these loans are still much harder to get as a result of the new directive.“Currently only four lenders are in a position to offer these loans and only in varying degrees. In some cases lenders will accept only one income when processing an application while in others they’ll accept only 80% of two combined incomes. “Many people living in the Republic and working in the North may still have problems when seeking finance for a new home.“The best first move is to seek professional advice on how to proceed. Getting a mortgage is one of the biggest decisions that people make in their lives so it’s important to get help at the beginning of the process in order to make the right decision.”BANKS EASE UP ON CROSS BORDER MORTGAGE BLACKOUT – DONEGAL FINANCIAL ADVISER was last modified: May 1st, 2016 by StephenShare this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Reddit (Opens in new window)Click to share on Pocket (Opens in new window)Click to share on Telegram (Opens in new window)Click to share on WhatsApp (Opens in new window)Click to share on Skype (Opens in new window)Click to print (Opens in new window)Tags:donegalFinancePascal Curranlast_img

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