![]() |
|
2. French Mortgage or Second Mortgage?If you are proposing to use mortgage funds to buy your property in France, you will either need to take out a second mortgage on your existing home, or take out a mortgage on the French property.In making this choice, there are three main factors you need to consider:
2.1. Currency Exchange Risk When Buying French PropertyThe level of currency risk to which you will be exposed will differ as between remortgaging your existing home and a mortgage on the French property. 2.1.1. RemortgageIf you are able to take out a second mortgage on your existing home then the whole process is certainly more straightforward, and you are offered a higher degree of protection against currency fluctuation.
Top Tip!
When you getting around to buying euros, consider using a currency broker. Their service is generally free of charge, and their rates often better than those of the main banks. Some of the established brokers around are:
2.1.2. French MortgageIf you are unable to remortgage the full price of the property, you either have to fund the balance from cash resources, or secure a Euro French mortgage on the new property. If you take a Euro mortgage, and your revenues are not Euro based, you take an ongoing risk with the currency. One partial solution is, once again, to buy a forward contract, which you can do so for at least two years ahead, with renewal on a periodic basis.
Next: Mortgage Tax Relief Back: Top Tips on French Mortgages Couldn't find what you are looking for? Search again now!! The IFP Guides are published for general information only. Please visit our Disclaimer for full details. |
Copyright © Internet French Property