What are the conditions for obtaining a Euro or Swiss Franc-based residential mortgage?

Posted on 7 January 2008

Hi Katie,

The interest rate on mortgages on the continent, i.e. in Germany, is a lot lower than in the UK. I have read in the Guardian that John Charcol also offers Euro-based residential mortgages or mortgages linked to the Swiss Franc. What are the conditions for obtaining such a mortgage?

Many thanks,

Ilse

Hi Ilse,

There are no special conditions for this sort of mortgage other than an understanding of the general movement of other interest rates. The important factor when considering such mortgages is not that the rate is lower now, but how the rate is going to move.  If it is 2% now, and your margin is 3%, giving a pay rate of 5%, that is only a good deal compared to a UK mortgage if it stays that way, or moves downwards.  If their rate starts increasing, your pay rate will do so also.
 
If you have a good knowledge of a foreign market, or if you have an asset there for example, and wish to bring your finances in line, then foreign rate trackers might suit you.  A John Charcol adviser from our sister company can only deal with such speacialised mortgages.  They can clarify what is best for you personally.  They are available on 0800 71 81 91, and because it is specialist advice not from us here at Charcol.co.uk, John Charcol can charge up to 1% of the loan amount on successful completion, although that includes what the lender pays, so it's worth discussing your options.

Categories: Foreign Currency or foreign tracking rate mortgages

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