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Buying a holiday home in France
Cava59
Posts: 1 Newbie
Can anyone please advise me if I would be able to purchase a house in France, in my circumstances.
The only equity I have is around 52K which is because my mortgage in UK is standing at 53k and my home I live in is valved at approx 105K.
Could I take half of this equity out and use that as a deposit for a Euro mortgage? Would I have to remortgage? I am on a fixed rate which doesn't end until May 2010.
My UK mortgage was taken out when I was single and is in my name only. I have since married and my husband does not have his name on the UK mortgage. Would he be able to apply for a Euro mortgage for a house in France as his earnings is approx 30k a year. Regards
The only equity I have is around 52K which is because my mortgage in UK is standing at 53k and my home I live in is valved at approx 105K.
Could I take half of this equity out and use that as a deposit for a Euro mortgage? Would I have to remortgage? I am on a fixed rate which doesn't end until May 2010.
My UK mortgage was taken out when I was single and is in my name only. I have since married and my husband does not have his name on the UK mortgage. Would he be able to apply for a Euro mortgage for a house in France as his earnings is approx 30k a year. Regards
0
Comments
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This is a really, really bad idea for soooo many reason.
Firstly, you don't really have 52k equity, you just think you do. It's not really money. There arn't piles of £20 trapped in your house that you can set free.
What your talking about is taking out a MASSIVE I repeat MASSIVE second motgage on you home to buy a holiday home in France.
Secondly, if you take out a mortgage in Euros and get paid in pounds you find that you are at the mercy of the exchange rates. As the value of the pound drops against the euro, your payments rise.
The pound has lost over 20% against the euro in the past year or so, so people with euro mortgages on holiday have found their repayments have risen by over 20%.Bankruptcy isn't the worst that can happen to you. The worst that can happen is your forced to live the rest of your life in abject poverty trying to repay the debts.0
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