In reply to A newbie all over again! by Annec
In reply to A newbie all over again! by Annec
What if the £ continues to fall (as it has done since the introduction of the Euro) and ends up at parity (1€ to 1£) you could pay an additional €40,000 for your property.
The prudent approach is to keep your debts in the same currency as your earnings.
Of course if you are sure the pound will strengthen you could buy options , at least you can sell them faster than you can sell your house, or change your mortgage. Notaio's fees on mortgages here are normally €1 -5,000.
In reply to A newbie all over again! by Annec
I’d advise you not to seek advice from any ‘financial experts; - because anyone calling themselves that is likely to loose you a packet!:laughs:
In reply to A newbie all over again! by Annec
Maybe you should first ask yourself if you can even get an Italian mortgage to pay off a British one. Would an Italian bank do that? I've heard of Italian mortgages to buy or to renovate, but not to clear debt - esp in another country.
In reply to A newbie all over again! by Annec
Hi English Teacher
When banks lend money for mortgages the important points are:
1/ To ensure the client can repay the mortgage (we are not estate agents or property developers and do not want to foreclose).
2/ The value of loan compared to the value of the property.
The purpose of the loan should be interesting, but not fundamental, to the loan. The new MiFID regulations are strong on the need to "know your client", so the question will undoubtedly be asked, though repaying an existing mortgage is a very good reason for taking out a new (cheaper) one.
The important point is to ensure that the client has enough income to repay the mortgage. We want happy clients and there are few people more unhappy than those that lose their homes.
Someone earning in one currency with a debt in another would normally be granted a smaller loan, as there is always the risk that their earning currency could depreciate against their loan currency (making it more expensive to repay).
Hope this sheds a tiny light on the dark arts of finance.
Something to think about for sure!
Submitted by Anonymous (not verified) on Mon, 10/20/2008 - 13:59In reply to A newbie all over again! by Annec
:smile:[quote=timwills;99243]Hi English Teacher
When banks lend money for mortgages the important points are:
1/ To ensure the client can repay the mortgage (we are not estate agents or property developers and do not want to foreclose).
2/ The value of loan compared to the value of the property.
The purpose of the loan should be interesting, but not fundamental, to the loan. The new MiFID regulations are strong on the need to "know your client", so the question will undoubtedly be asked, though repaying an existing mortgage is a very good reason for taking out a new (cheaper) one.
The important point is to ensure that the client has enough income to repay the mortgage. We want happy clients and there are few people more unhappy than those that lose their homes.
Someone earning in one currency with a debt in another would normally be granted a smaller loan, as there is always the risk that their earning currency could depreciate against their loan currency (making it more expensive to repay).
Hope this sheds a tiny light on the dark arts of finance.[/quote]
Thanks for all your input - the bottom line is that my income has gone up, and my debts remained at the same level. However, My Italian property has gone up in value quite a lot since I bought it and have done quite a bit of renovation (including 22k on the roof!
Anyway - Thanks for all your views and thoughts.
[quote=Rafey;98576]Hi,
This is obviously a big decision, so I won't be rushing into it, but your thoughts are welcome!
:bigergrin:[/quote]
Today seems an inopportune time to ask anybody to take even a five minute term view of a): whether borrowing is the safest place for savings (the US take), and b): whether a mortgage denominated in Yen might offer the same risk frisson! (You did say thoughts were welcome!) :bigergrin: