subject: Foreign loan: If the foreign currency saves [print this page] Foreign loan: If the foreign currency saves
Open your mortgage or move abroad is a practical solution and sometimes advisable. There are, however, the conditions that you must take no account as a foreign mortgage may also exposed to serious risks, in addition to a good economy.
Open a foreign loan has been a very practical solution in the '80s, at the time of the pound when it was possible to play on foreign interest rates very low.
Specified as the attractiveness of a foreign loan in foreign currency is made up mainly by the difference in interest rates: to understand the differences in the Euro zone we refer to the Euribor rate of around 1, 5%, while in other countries the reference rate is LIBOR, which is around 0.50%.
Just this figure to at least consider the possibility of evaluating the lighting of a loan in foreign currency.
Banks and Foreign Currency
Considering the possibility of a mortgage abroad in foreign currency is very useful to clarify how institutions would be able to lend to these conditions.
Basically, the customer must arrange with the Institute's expert calculated a repayment plan, and not just in their chosen currency in Euro, as happens regularly. This results in a less direct procedure for the payment of each instalment, since previously it would become necessary to change the sum in foreign currency and bear the expense of the exchange rate at the time. To work around this problem, a customer who chooses to open a foreign loan could open a bank account in that currency.
Who should
Let's see what kind of customer would bring real benefits in terms of savings on a mortgage agent: we refer to those who work for a foreign company and receives a salary in the currency which would turn on the mortgage. Why?
In this case, the customer quietly circumventing the risk associated with exchange rates, the factor that makes it a chance to open the foreign loan to those who, however, gains in Euro.
Who is not recommended
The answer is not obvious because it does not entirely true that all those earning therefore no point in a mortgage abroad. Specify that the Council will not in normal families who suffer harsh backlash from sudden changes in exchange rates: the rate could rise by 50% or even double their spending.
Who gains in Euro, but has higher ability to cope with a possible rise in exchange rates could in fact "risk" with greater ease. Its resources would allow him to absorb the increase in rate relative peace.
