As reported in the Sunday Times, overseas buyers are showing more interest in a French Mortgage in euros.
International Private Finance (IPP), the overseas mortgage specialist, says cash buyers of French properties are now starting to choose euro loans for the first time in more than three years.
Simon Smallword at IPF said: “Rather than using cash, buyers use a euro mortgage to make the purchase with a view to profiting when the pound strengthens again.”
Example on a 250,000 euro loan
If buyers are worrying about the exchange rate, they have the option to take a flexible mortgage that they can pay off should the £/€ rate improve… so in a few months (or years - who really knows)
€250,000 @ 1.15 = £217,391
€250,000 @ 1.20 = £208,333
€250,000 @ 1.30 = £192,308
More explanations: Good time for a Euro Loan on your new French Property?
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