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Bank of Ireland & European Central Bank Interest Rates
Brassed_Off_4
Posts: 4 Newbie
hello, I wonder if anyone can offer me any advice. I am looking for a mortgage and I have been recomended the Bank of Ireland by an accountant. You can check to see what the repayments would be online and at first glance the monthly repayment (in euros) seems very reasonable but the Bank of Ireland (BOI) use the European Central Bank (ECB) interest rates and not the Bank of England (BOE).
Not knowing much about the ECB and whether it is better or worse than using the BOE for interest rates, I was wondering if anyone could shed any light on the subject.
Thanks
Richard
Not knowing much about the ECB and whether it is better or worse than using the BOE for interest rates, I was wondering if anyone could shed any light on the subject.
Thanks
Richard
0
Comments
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It's likely that all else being equal ECB interest rates will be lower than BoE interest rates for the foreseeable future, though theirs will probably go up at least once more in the next couple of months, whereas ours may have peaked.
The real question is what you do if the value of the pound falls, say 20% against the Euro. Suddenly your mortgage of £200,000 is a mortgage of £250,000.Hurrah, now I have more thankings than postings, cheers everyone!0 -
Wow! never thought of that. is that a real possibility do you think? or is it possible the pound may rise against the euro?0
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Brassed_Off wrote: »Wow! never thought of that. is that a real possibility do you think? or is it possible the pound may rise against the euro?
You've got to ask yourself one question: Do I feel lucky? Well do ya, punk?:money:"Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
"I think I'll become an alcoholic," said Betty.0 -
Brassed_Off wrote: »Wow! never thought of that. is that a real possibility do you think? or is it possible the pound may rise against the euro?
LOL!
If I had a definitive answer to either question, I would have already set up a website called MoneySpendingExpert.com, since I would be very rich.
In brief either outcome is possible. Nobody knows. This is why foreign currency mortgages are considered high risk.In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0 -
Thanks Jonbvn! you have said (or wrote) the words I needed to hear - High Risk. Thats enough for me to forget about the idea. I think I will stick with the good old British Pound!
Thanks to everyones for the comments.
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Are you aware Bank of Ireland operate in the UK and offer mortgages in Sterling? Just thought I'd mention it incase you thought it was a euro only BankNorn Iron Club Member #64
Wikkity Wikkity Wikkity Lets go racing!0 -
No I wasn't aware of that. Thanks, I will investigate...0
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