US dollar mortgage on UK property?

[rootsnall]

A lot of farmers went under in Oz a few years back after being encouraged to take out foreign currency loans by the Oz banks.

I've looked into it a few times at different times and the companies offering it to normal (mug !?) punters want to take a large share of anything you may gain by doing it but obviously have nothing to do with any losses. Avoid like the plague unless you are using somebody elses money as with most hedge funds and investment banks borrowing in Jap yen.

[HairyArsedBloke]

Are you thinking of Councils getting involved in interest rate swaps? That was in the 90’s. It didn’t end well.

Edit: Yes, many councils had exposure to BCCI. That didn't end well either.

[expat]

Yes.

Wasn't it the Orkneys?

Thought they had trouble because their money was with BCCI, not because they themselves had decided to speculate?

[milanbenes]

I remember when I were a lad in the 80's something in the news about County Councils which had borrowed money in foreign currencies because of this kind of shall we say economic opportunity and later exchange rates and interest rates had turned against them and they were fooked

anyone else remember this ?

Milan.

[snaw]

What US lender in this credit crunch is going to lend on a property in the UK?

Even if they did, the exchange rate can move against you meaning suddenly your debt has just got a lot bigger.

HTH

No, no, no, no. The banks like mortgage risk over in the US at the moment. Really.

[DimPrawn]

Why would you not do this for the short term, assuming you could find a lender and a % of your income was in dollars?

What US lender in this credit crunch is going to lend on a property in the UK?

Even if they did, the exchange rate can move against you meaning suddenly your debt has just got a lot bigger.

HTH

[Moscow Mule]

Why would you not do this for the short term, assuming you could find a lender and a % of your income was in dollars?

We've had this before when the yen was at zero interest for some time.

Do a search for "yen carry trade" you'll find all of the arguments for and (mostly) against.

[scooterscot]

Why would you not do this for the short term, assuming you could find a lender and a % of your income was in dollars?