Taking a mortgage on a UK property in a foreign currency can open up the possibility of lower interest rates, but it also opens up the possibility of moving the debt between currencies to take advantage of currency movements.
If you were lucky in your timing of these switches you could progressively manage down the size of your debt much more quickly than you could reduce it by simple repayment. By the same token if you were not fortunate in the timing and selection of currency your debt could increase.
For UK property, this option is only available to UK residents of substantial means on loans in excess of £250,000, whereas for British Expats and foreign nationals resident in the UK the thresholds are lower at £100,000 or it's currency equivalent.
If you have income in a particular currency than getting a mortgage in that currency will be a sensible option if you don't want to expose yourself to currency risks.
Alternatively, you can opt for a managed currency mortgage. With this, a manager moves your mortgage in and out of various currencies when he judges that it is timely to do so. For example, if your mortgage is in Euro but this strengthens against Sterling, the manager will move your mortgage into a relatively weaker currency, such as US Dollars, for instance.
These mortgages are not for everyone, but for the more financially adventurous with a larger than minimum deposit they can pay off. B2B can provide guidance on foreign currency lending and managed currency mortgages, introducing your business those lenders who offer the most competitive deals.
If you are a UK resident looking to buy an overseas holiday home or commercial property, then we can assist. We can arrange mortgages in most countries which UK investors find attractive, including popular countries like France, Spain, and Portugal, and countries further afield.
Our fees for the work required will depend on the complexity and difficulty of your requirements. We will inform you once we understand your requirements what fee, if any, will be payable.