Mortgage cost

[Guest]

We recently applied for a mortgage with the millenium bank. The rate was far below uk rates, but they wanted a very expensive life insurance which made it more expensive than a uk mortgage. Is this normal?

[Guest UK]

The rate will be far less as the mortgage is euro denominated, and with Euro base re finance rates currently at 2.0% versus 4.75% for the UK. However you have to consider the source of repyaments ie are you financing the repayments from sterling cash, in which case you have a currency risk.

Re the life assurance, again presumably it is an endowment style mortgage in which case the term ofd the loan and of course your age will determine the cost of the policy. No different from the UK.

[GuestE]

Guest,
There is one bank that does not insist on life assurance, depending on status and various other minor issues, too numerous to place on here.
There are also banks now taking interest only for 3 and 5 year periods.

If you want to know more info on this, please email me on
ims-pevans@fsmail.net

Regards

Peter