Reply to: Anyone got a Euro mortgage for a property in the UK?

[Mich the Tester]

That's interesting because at the moment 89.74p = 1 Euro

boring

[HairyArsedBloke]

R4 last week, "economists are expecting the pound to drop to 80p = 1E."

That's interesting because at the moment 89.74p = 1 Euro

[BoredBloke]

R4 last week, "economists are expecting the pound to drop to 80p = 1E."

did they give any timescales for that? Glad I'm paid in CHF as I'm getting a small pay rise each week at the moment

[Scary]

R4 last week, "economists are expecting the pound to drop to 80p = 1E."

Who knows where is going to blow up first? It could be the UK, but it could equally be Italy, or Japan, or somewhere completely off the radar.

[Paddy]

Is it a good time to get one? The pound can only go one way shirley?

R4 last week, "economists are expecting the pound to drop to 80p = 1E."

[Scary]

I'm curious - which way is the 'only' direction?

He wants to buy property valued in GBP and pay for it in EUR, so must mean up (GBP will strengthen relative to EUR).

ETA: all other things (interest rates) being equal (which they might not be).

[Mich the Tester]

Lockhouse words of wisdom; Always have the mortgage in the same currency as your rent.

And income stream.

I concur. The last thing I want to do is sit in my home worrying about currency fluctuations and whether I can still pay for the place.

[BoredBloke]

The Euro was about 1.4 a couple of years ago. So if you wanted a 100k GBP mortgage you'd be looking at borrowing 140k euro. The pound is now about 1.10 so your 100k GBP mortgage would now be 127k GBP

[HairyArsedBloke]

Is it a good time to get one? The pound can only go one way shirley?

I'm curious - which way is the 'only' direction?

[DimPrawn]

Any debt should be denominated in the same currency of your main income.

Indeed, look at the number of retirees struggling in Spain with a GBP income and a EUR cost of living now.

[NoddY]

Any debt should be denominated in the same currency of your main income.

[Lockhouse]

And income stream.

Not so important as you may wish to speculate but at least you are hedged.

[HairyArsedBloke]

Lockhouse words of wisdom; Always have the mortgage in the same currency as your rent.

And income stream.

[Lockhouse]

Lockhouse words of wisdom; Always have the mortgage in the same currency as your rent.

[Moscow Mule]

Not a wise thing. When it unwinds, you'll get royally ****ed over. Google Yen Carry Trade for some horror stories.

The recent E.Europe troubles are just people not learning their lesson from history.