EURO mortgage

bluebaron

I've been looking into this but have failed to find any lender willing to lend.

Basically i need around £280k for a £400k property. (UK)

I am willing to take a gamble that the pound will gain strength against the Euro over the next 2 years. If this happens then firstly my payments will go down, and secondly my overall debt will decrease.

Obviously the opposite is true if the Pound goes the other way but looking at the long term average i'm willing to take a punt.

Anyone know of lenders in this market?

Annisele

Do you get paid in euros/have any income in euros? If you do, you might find you have more options than if your salary is in sterling.

bluebaron

No paid in Pounds, just a normal uk property deal only a lend in euros is what i'm after.

poppy10_2

bluebaron wrote: »

I've been looking into this but have failed to find any lender willing to lend.

Basically i need around £280k for a £400k property. (UK)

I am willing to take a gamble that the pound will gain strength against the Euro over the next 2 years

Are you sure you want to gamble with such a huge amount? Even the most hardcore gamblers would think twice about placing a stake of over a quarter of a million pounds. If the pound depreciates your debt will inflate and your monthly payments may become unmanageably high.

bluebaron

I can cover the monthy payments and the debt will only be an issue if i 'cash-in'. Thats the beauty of negative equity, its only an issue if you have to sell. That said the Euro is close to its all time High. If it returns to normal levels then that's £50k off the debt!

Gambling element aside, its finding a lender that's the hard bit!

turbobob

bluebaron wrote: »

I can cover the monthy payments and the debt will only be an issue if i 'cash-in'. Thats the beauty of negative equity, its only an issue if you have to sell.

Or re-mortgage. If you have strong views on currency trends there are other methods of speculating open to you e.g. forex trading. Very high risk but then so is what you are planning now.

Rafter

bluebaron,

You should be able to achieve the same effect by taking out a sterling mortgage and then taking out an option or spread bet on the sterling/euro rate.

R.

phlash

Agree, the way to do this is spread bet.

bluebaron

Problem with spread betting is you have to specifiy a 'close' date. If the currency moves against me then i'm stuck! On a mortgage i'm only 'stuck' if i have to re-morgage/Sell.


............Still after a lender.