International Mortgage Solutions

Personal, Professional & Independent Mortgage Advice.

Spain:   +34 952 459 745

Are you considering buying cash in Spain but are concerned about current exchange rates and believe the pound will strengthen against the Euro in the next two years or so. We have a solution that might work for you which allows you to hedge against rises in exchange rates, buy now, but minimize the amount of your own currency you move to Euros whilst exchange rates are historically low.

Money on deposit is left in your currency and money lent is in Euros.

At any time to suit you and when currency rates meet your required level without penalty you can exchange sterling into Euros, redeem loan, and either leave excess sterling cash on deposit or take excess cash back.

Please see example below based on current average exchange rates of 1.15 and assuming an exchange move within 1 year to 1.25% and a move within 2 years to 1.35%.

Cash Loan

Loan to value 80% of cash on deposit

Total cash required GBP 574k

Loan € 450kor GBP 391k

Cash to purchase € 100k cost GBP 87,000

Extra cash required GBP 96k

Interest paid on sterling deposit @ assumed 3% € 1.125

Rate charged on loan @ assumed 4.5% € 2.100

Net monthly cost € 975

Set up costs € 4.500 bank fee

Notary € 500

Broker fee € 500

Total cost € 5.500

1st year costs including net interest charges € 17.200 or GBP 14,956

Total purchase price based on a 1.25% exchange rate within 1 year GBP 440k

Total cost GBP 14,956

Net saving GBP 23,044

Total purchase price based on 1.35% exchange rate within 2 years GBP 407k

2 year costs € 28.900

Net saving GBP 42k

*This product is only suitable for clients who understand the risk that exchange rates may not increase but may in fact remain static or decrease.

 

Useful Links

Link to Us Spanish Mortgage Calculator Process & Packaging Services

Independent Lawyers Spanish Insurance Broker Spanish Bank Information

Sitemap

Spain: +34 952 45 97 45 | Fax: +34 952 45 97 42

International Mortgage Solutions, Lista de Correos, C.P 29110, Monda Malaga

International Mortgage Solutions guarantee the following:
Neither your personal financial details or other personal information sent for a mortgage enquiry or application
will at any time be passed to or sold to any third party for data base marketing purposes or any other reason.
Information in relation to a full mortgage application will only be passed to the bank or relevant banks to which we are making an application.

Please note that all UK mortgage enquiries are passed with the clients permission to an authorised independent UK broker.
We do not advise on or arrange UK loans directly ourselves as we are not FSA regulated to do so.