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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.