Overseas Mortgage - CHF or Euro

[magic torch]

Been offered an overseas mortgage 5.99% with CHF or 7.0% with Euro.

Any reason why I shouldn't go CHF?

Thanks.

[Eric Mc]

Very risky strategy - as well as fluctuating interest rates, you will also need to be aware of fluctauting currency rates.

[mansfa]

5.99% CHF or 7.00% EUR? Are these subprime rates? Seem v high to me.

[magic torch]

Eric Mc said:

Very risky strategy - as well as fluctuating interest rates, you will also need to be aware of fluctauting currency rates.

It's on an overseas property in emerging Euro market. I've already made quite a bit on capital appreciation, and the rent more than covers the mortgage payments.


I suppose the question I'm asking is an Euro mortgage worth the extra interest rate over a CHF?


Obviously this is a very simplistic summary of the situation.

[pugwash4x4]

i think you will find CHF more stable in the future- i worked in switzerland a few years back and the exchange rate has hardly changed- whether the UK will stay stable is a whole different question.

If it were me i'd much rather go with CHF than Euros.

(p.s. this is a total opinion as i have no "experience" of international lending so you might like to ignore this post completely)

[srebbe64]

I guess it depends on the settlement penalties. Can you change mortgage lenders mid-term with minimal penalty? If so, go for the best deal.