Borrowing abroad?

Pascal

I am investigating the possibility to borrow money in France, where Rates are more advantageous, to repay my mortgage in the UK. Does anyone there know about this concept? Is there restrictions, or pitfalls to be aware of? Any advice will be more than welcomed. Merci beaucoup.

simonjfisher

That's it!

Pascal

Never really worried about it but with large amounts it makes sense to keep an eye on it. Thank you.
Taking a loan in a more favourable country sounds like an obvious way to save money but I can't find any reference to it anywhere so I wonder if there are legal or technical difficulties that I am not aware of.

MarkyMarkD

A French lender will be unlikely to lend on a British property.

If your income is in sterling, and your repayments in Euros, then the real cost of the repayments will fluctuate, possibly significantly.

If the pound depreciates against the Euro, your mortgage balance could increase (possibly significantly) in Sterling leaving you with an unexpected liability.

All in all, it's not a very good idea IMHO. If you were earning in Euros, or buying a property in France, or preferably both, it would be a different matter.

Walletwatch

Agree with the above posters - Pascal, don't think the idea is a very sound one - maybe that's why we don't hear of any such lenders / loans on offer.

Pascal

Started checking exchange rates history, adding things up and these are very sound advices indeed. I have had 2 offers at 3.80% fixed for 15 years but 1 bank declined immediately. I am not giving up completely yet, because of personal circumstances that might still make it viable. Start to see why there is so little out there about it though. Many thanks for both replies.