PaulC72

Does anyone know which is best mortgage to have on a Spanish property one in sterling or one that is in Euro.

I can see the advantages in a way but its all new to me and I thought someone would know the answer.

I know £ to euro is shagged but I think one will be better when it does recover.

Thanks.

Gordo

Depends what you're trying to achieve.

There are two reasons for getting a Euro mortgage IMO:

1. You are renting out the property and therefore want to have a natural hedge, matching the Euro income vs the Euro cost of the mortgage

2. You fancy a go at currency speculating.

Not sure it's possible to get a Spanish mortgage deominated in UK Sterling? You may need to try to get a UK mortgage, secured on the Spanish property - but it'll likely cost.

Good luck

Gordo

PaulC72

Thanks Gordo, I think Natwest do one in Euro but Lloyds or Halifax say they can do them in either...which is confusing in itself lol.

I was more wondering if you took out a Euro mortgage and obviously your fund are coming from your UK account the exchange rate may benefit you when the £ picks up, but if you do it in Stering you would have no gain as it is your £ which does not attract any exchange rate..if you see what I mean.

ScoobyWon't

Halifax offer it through their sister company Halifax Hispania.

Another one to look at would be Abbey/Santander.

Barclays do have branches out there too, but I've never looked into what they offer.

Most generally offer the mortgages in Euros but offer you free transfers from the UK and offer a slightly better exchange rate, than you would sending payments from unlinked banks.

cster

It's surely got to be a Euro one when buying a property in Europe unless you are a currency speculator big time.
I'm no expert though.

Gordo

Paul - you're category 2 in my email then - the speculator. To be fair, some people did well oiut of this in the past. You'd have to hold your nerve and could be paying more for a while if Sterling weakens further (which it's likely to e.g. when the next interest rate cut being talked about is made - possibly Thursday this week). You'd then have to line up and complete on a UK Sterling mortgage to replace the Euro one when you're ready to bank the gain.

Might be simpler to get a UK mortgage and speculate on the currency separately with an option if you're keen on the speculating.

Gordo

4X4BOB

When were buying in Europe it was loads cheaper to get a Euro mortgage over there, and so much easier.

PaulC72

Many thanks for the responses it at least gives me some more things to look into