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Quick Mortgage Related Question, Chaps

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I'd appreciate your advice on this...

Ms Europa is currently looking to buy a flat, and is in the process of browsing for mortgages. It has taken a little longer than expected for her to find a suitable property, because everything half decent (ie not ex-LA, currently on fire, or about to be condemned) seems to get snapped up in minutes.

In the three or so months since starting her search, she's noticed that the mortgages offered by the banks are no longer on such favourable terms; quite a few (as discussed on here) have wacked up the rates, leaving Ms Europa a bit miffed.

She is now wondering if would be possible to take out a mortgage in the Euro-zone on a property in the UK. I have a feeling this isn't possible, but I'm not sure why :unsure:

Advice gratefully received :)

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I'd appreciate your advice on this...

Ms Europa is currently looking to buy a flat, and is in the process of browsing for mortgages. It has taken a little longer than expected for her to find a suitable property, because everything half decent (ie not ex-LA, currently on fire, or about to be condemned) seems to get snapped up in minutes.

In the three or so months since starting her search, she's noticed that the mortgages offered by the banks are no longer on such favourable terms; quite a few (as discussed on here) have wacked up the rates, leaving Ms Europa a bit miffed.

She is now wondering if would be possible to take out a mortgage in the Euro-zone on a property in the UK. I have a feeling this isn't possible, but I'm not sure why :unsure:

Advice gratefully received :)

Come on, don't be shy :)

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Come on, don't be shy :)

Everyone is probably off to watch the football including me after my input FWIW

I have never explored the possibility of borrowing in the Eurozone but think (with my reasonable but not extensive knowledge) that the lender would have difficulty in enforcing a contract taken upon a residential property in another country, plus the fact that getting a mortgage in the UK is easy - it is not so free in other parts of Europe, you would also be at risk if the £ fell seriously against the Euro - your loan would be in euros and you assest would have a sterling value, etc. etc.

I don't think it would be easy to arrange

If you need anything more in depth it will have to be after the match

CS

Edited by Cornwall Sceptic

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I seem to remember euro mortgages being available for UK property some years back (Credite Agricole maybe?).

But would you want to take the risk? Future UK property prices are uncertain and you would be adding another layer of risk if the £/Euro exchange rate moved adversely.

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I'd appreciate your advice on this...

Ms Europa is currently looking to buy a flat, and is in the process of browsing for mortgages. It has taken a little longer than expected for her to find a suitable property, because everything half decent (ie not ex-LA, currently on fire, or about to be condemned) seems to get snapped up in minutes.

In the three or so months since starting her search, she's noticed that the mortgages offered by the banks are no longer on such favourable terms; quite a few (as discussed on here) have wacked up the rates, leaving Ms Europa a bit miffed.

She is now wondering if would be possible to take out a mortgage in the Euro-zone on a property in the UK. I have a feeling this isn't possible, but I'm not sure why :unsure:

Advice gratefully received :)

I remember reading something on this - it is possible, but you need to be paid by your employer in Euros, and do a lot of paperwork.

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You'll have to worry about exchange rates each month. You will also have to find a way to get market (commercial SWIFT) exchange rates otherwise you will end up incurring high street retail exchange rates that the general public gets (not very good!), and you will probably incur a exchange rate fee of some sort on top of all this and no doubt some sort of extra commission. Alternatively you might be able to pay via someone like nationwide who do very good exchange rates on there cards.

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It is not advisable as the exchange rate risk is high. If sterling falls say 10% against the Euro ((it has been a lot lower than that) you have to find 10% more each month to pay off your mortgage.

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Thanks for the replies chaps - all very much appreciated :)

I agree that assuming this can be done, the risk of currency fluctuations makes it a bit of a non-starter

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Speak to an independent mortgage broker/financial advisor.One that isn't working in an EA office because they will only use a handful of favourable lenders.

These guys can save a fortune in the long run and often the £500 (or so) fee is repayed by the lender so it can cost absolutely nothing.

They have access to every lender in the country and should know patterns of interest rises/drops of most of the top lenders and so it will be less of a risk.

Maybe for most they are a waste of money but had I not used one I would have been £100 a month worse off or worse still hadn't got a mortgage.

I bought a BTL that was a victorian basement conversion. Most lenders won't touch victorian conversions or basement flats with barge pole but my financial advisor excelled himself and got a better deal than even he expected.

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  • 335 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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