euro mortgages

[IRM]

worth getting ?

reading the in boat magazine on the way to France in noticed an advert offering euro mortgages from 1.89% ffs virtually free money

whilst this may be an old advert, interest rates are lower than here and the pound euro exchange rate has not moved that significantly compared tO the dollar/pound for a number of years, in fact the last rate I saw was 1.44 compared to me buying at 1.47/8 (I think) before I went so are they worth getting for a property in GB

[mcflurry]

I would speak with an IFA as there are larger risks as you have the FX movement to factor in, as well as European interest rates..

In May 2001 the rate was EUR 1.67 the £, in May 2003 your £ would get EUR 1.38

Thats a large difference to a mortgage payment..

[scotal]

Are you sure the euro backed mortgages were for UK propertyo r were they for uk based borrowers buying homes abroad?

[emicen]

Also factor in if borrowing in euros you will have to pay in euros.

Dont know what your banks exchange rates are but it would make a hit to your potential savings.

[trunnie]

Not unless you have a source of income/repayment in Euros or can hedge. The exchange rate to sterling has moved between 1.52 euros to the pound to around 1.41 in the last year alone - if you took out your loan at 1.52 then whilst you'd be paying the low interest, your total debt would have risen by over 6%.