Mortgages Abroad: Holiday/ Retirement Home

1connect

We are looking for a bit of advice regarding a Mortgages Abroad:

We are looking for a holiday home in Corfu that will later become our retirement home, until this time we want to take a Loan or Mortgage (for between £50k to £100k, and overpay it - hopefully helped by some rental income.

I have been offered a Mortgage in Swiss francs at 3.70% (repayment)
I'm just wondering (as we are avid MSE converts) if that is the best deal that's out there and if anybody has experienced any pitfalls with a similar mortgages ? I am informed we can take it out in any currency - and we repay in that currency - so obviously subject to exchange rate variances and possibly an exchange an exchange transaction fee. Also it has no penalties so we can (if the exchange rate become a problem) swop to a new mortgage in Euro. The mortgage is repayment and is a flexible type mortgage product, with daily calculable interest.
Now I know that Martin always says that the single biggest savings most people can make is on their mortgage , so we are thinking ... well you don't just buy the first quote that comes along cos it sounds cheap...
So, as if it wasn't complicated enough just with the UK mortgage market alone I'm asking for some expert advice on the European \ Worldwide mortgage market. and I am already casting an eye to the arrangement fees and thinking hmmm 1) am i getting the best rate 2) am i getting the lowest fees = basically am I getting the ABSOLUTE best deal?
many thanks
1connect

FULL DETAILS
Loan Amount in Euros: (max 80% of the property valuation) € 100,000
Interest Rate in Swiss Francs 3.70%
Term (Years) 30
Your monthly payment will be (Swiss Franc): €467.00
Euro Mortgage (5.55%) your monthly payment will be €579.00

ESTIMATED COSTS FOR OBTAINING THE MORTGAGE
Legal and Technical Evaluation Fee € 450.00
Pre- Notation Fee € 1,137.50
Bank's legal fees € 250.00
Estimated total payable to the Bank € 1,837.50

ramie_m

we bought an apartment in Cyprus two years ago. We were advised to take out a Swiss Franc mortgage in Cyprus for £70K. After making payments of over £13K in the last two years we now owe £72k!!!!!! The amount of Swiss Francs has decreased but its Sterling value has not. Can't believe we have made such a mess of things. What do we do now? Selling it seems the best option but with the strong Euro we are worried about losing even more money! Anyone with advice out there?????

EdInvestor

It seems you are exposed to two foreign currencies, the Euro and the Swiss Franc?

Has the value of the property appreciated because it is priced in Euros?

Can you remortgage the SwFr loan back into sterling (assuming you are paid in pounds?)

Gangstabird

Can you get a fixed deal with the foreign currency mortgage? If so, try for a 10 year one.

Gangstabird

Many moons ago, I dealt with a couple of foreign currency mortgages, which were very cheap, but was told to beware.