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Euro Mortgages
Arvigna
Posts: 2 Newbie
I know the Euro Mortgage debate has been flagged up before, but our circumstances are different from what has been previously discussed and would appreciate any advice from anybody in the know.
We have a house in Glasgow with a mortgage, we have a flat in London, that we rent out, with a mortgage, and we have a house in France, that we rent out high season (mainly to Brits in sterling, but do quote in euros), with no mortgage. We are both employed and paid in sterling.
In order to take advantage of the lower interest rate offered for euro mortgages and also the strength of the euro against the pound at the moment (to get more sterling for our money) is it worth looking into mortgaging our house in France to reduce monthly repayments on our house in Glasgow? eg if I had previously mortgaged our property in France when you got a rate of, say, 1.4 euros to the pound, €140,000 would have given me an amount of 100,000 pounds, but at the current rate,say 1.2, €140,000 would give me an amount of approx 116,666 pounds to pay off my mortgage in the UK? I would also benefit from a cheaper interest rate. I am aware that the downside would be the fluctuating conversion rate would have an effect on us being paid in sterling, but am feeling that 2 out of 3 aint bad.
The value of our house in France would be enough to pay off our mortgage on Glasgow in full. I mentioned the flat in London, just in case anybody could come up with advice for bringing that into the equation, but have a feeling that because Glasgow is our main residence, that is what we should look at.
Would appreciate any input on our predicament.
We have a house in Glasgow with a mortgage, we have a flat in London, that we rent out, with a mortgage, and we have a house in France, that we rent out high season (mainly to Brits in sterling, but do quote in euros), with no mortgage. We are both employed and paid in sterling.
In order to take advantage of the lower interest rate offered for euro mortgages and also the strength of the euro against the pound at the moment (to get more sterling for our money) is it worth looking into mortgaging our house in France to reduce monthly repayments on our house in Glasgow? eg if I had previously mortgaged our property in France when you got a rate of, say, 1.4 euros to the pound, €140,000 would have given me an amount of 100,000 pounds, but at the current rate,say 1.2, €140,000 would give me an amount of approx 116,666 pounds to pay off my mortgage in the UK? I would also benefit from a cheaper interest rate. I am aware that the downside would be the fluctuating conversion rate would have an effect on us being paid in sterling, but am feeling that 2 out of 3 aint bad.
The value of our house in France would be enough to pay off our mortgage on Glasgow in full. I mentioned the flat in London, just in case anybody could come up with advice for bringing that into the equation, but have a feeling that because Glasgow is our main residence, that is what we should look at.
Would appreciate any input on our predicament.
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