Foreign mortgages
Vs UK mortgages
4/05/2007
Potential investors who feel they want
to buy a property abroad should consider mortgage
deals when dealing with UK banks and foreign banks.
The AIPP clearly agreed that there
were disadvantages when dealing with banks abroad, looking at
all aspects is important Paul Owen comments.
AIPP's chief executive, Mr Owen commented,
many European banks have fewer products available at a higher
value, and overseas investors often have trouble in attaining
89 to 94 per cent, as it is standard in the UK.
He clarified: "There are pluses
and minuses on either side some would argue that it's a good idea
to have the assets of the property and the debt in the same currency.
"Although the possible downside
of that is that if you're earning money in UK sterling and paying
a mortgage in Euros, then you run the danger of exchange rates
change making a difference to your payments."
Mr Owen said that many UK investors
should think about the advantages and disadvantages when completing
a mortgage deal
abroad, getting trapped in a mortgage deal when dealing
with foreign banks can be tragic, so making decisions wisely is
important.
