UK vs Euro mortgages

wolfie · Post by **wolfie** » Sat Apr 12, 2008 5:53 pm

We took out a Euro mortgage with Barclays Portugal on our apartment some 3 years ago .At the time this seemed a good idea as Euro interests rates were low .
However as they have risen , and more importantly as the Euro /£ exchange rate has worsened we now find ourselves having to send over more £ each month.
We are thinking of selling our property and moving up to a bigger property - what do people advise for our next mortgage - - Euro or remortgage our UK property

tricky · Post by **tricky** » Sat Apr 12, 2008 5:59 pm

We have a UK mortgage on our property in the Algarve but are thinking of moving up to something bigger. I understood that the Euro base rate was round about 3.8% but the mortgage rate from Barclays in Portugal is about 5.19% not much cheaper than in the UK.
Does anyone know if the portuguese banks offer lower interest rates and if they do fixed or tracker mortgages?, we are with Millenium BCP, but I can't find any info on rates whilst in the UK

DaveK · Post by **DaveK** » Sun Apr 13, 2008 9:51 am

Our mortgage was taken out last year with BBVA at 0.65% over Euribor rate and is variable with first 3 years interest only. We found BBVA in Portimao a pleasure to do business with and would recommend them.

Farol · Post by **Farol** » Sun Apr 13, 2008 10:12 am

I would think that as the exchange rate typically varies more than the interest rate, especially if you buy a mortgage with a period of fixed interest, you would be best buying a mortgage which is based on the currency of your income.

Misty · Post by **Misty** » Sun Apr 13, 2008 3:07 pm

It really depends on where you earn your money and whether you have residency in Portugal. Those with residency (ie live here for at least 6 months) can benefit from lower interest rates. Yes, the euro interest rates have fone up, but I don't think they are that different to UK interest rates are they?
I would actually recommend contacting an independent financial advisor to see what the options in Portugal are, then you could weigh them up against what you might get in the UK.
I know a good IFA over here if you would like his details.

JohnT · Post by **JohnT** » Mon Apr 14, 2008 3:11 pm

I am a director of Premier FX Group. We specialise in Currency exchange and Mortgages and are based in Almancil. We are able to arrange mortgages here from a selection of 13 different banks as well as offering very competitive exchange rates for transfers. We do not charge for arranging mortgages and the currency transfers are free. If you require anymore information please contact me. john.thorpe@premfx.com