Spanish mortgage from UK

if you have a Euro mortgage you will have to live with exchange rate fluctuations. If your main home is going to be over here and you are pain in sterling you are better off having a sterling mortgage

Thanks. My main home will be in the UK and I will be paying for the Spanish property's mortgage in uros. What would you recommend in that case?

Well, at todays rate for your 90,000 you are going to need a 130,000 Euro mortgage. If the exchange rate falls to say 1.30 euros to the pound you mortgage will effectively go up to 100,000. So lets say your mortgage repayments were 600 Euros a month that equates to 410 but if the exchange rate goes down that will cost you 461. I personnaly would look at a company in this country and get your mortgage in pounds. Yes of course the exchange rate could go up as well, it depends if you want the risk?

If hes renting and his rent is in Euros?

Yes, renting in Euros.

You would be better getting a euro mortgage. Your income is in Euros, and this removes exchange rate risk. A sterling mortgage would only expose you to exchange rate fluctuations.

John

That would be sensible if the majority of his rental income covers the mortgage payments, if not he's better in GBP

Talk to some spanish agents who help Brits buy ?

In message , Mark Hamptons writes

If the Euros are from the rental income which you receive in Euros, then get a Euro Mortgage as well, so that all three elements of the loan, i.e.loan, security, repayment, are all denominated in the same currency.

In message , Pet Lover writes

No. If the repayment is coming from rent in Euros, then get the loan in euros too.

Having the loan, repayment and security all valued in the same currency removes exchange risk.

In message , Pet Lover writes

Hmm, depends on the figures. I think it would be better to have at least the loan and security denominated in the same currency because that ensures a safe 'get out'. If the exchange rate moves against you by