What is a Euro mortgage?
Euro mortgages are essentially overseas mortgages you can use to purchase property abroad.
Euro mortgages may be attractive to you like the properties abroad may present a better value to you based on the strength of the pound against the Euro and more simply because the location of the property and the property itself may be desirable to you.
Euro mortgages are mostly taking out as mortgages for holiday homes, second homes and in some cases investment properties in Europe. With Aa Euro mortgage you will be able to purchase a property from Spain, France, Portugal, Italy etc
Euro mortgages are different from a standard UK mortgage as the number of Euro mortgage interest rates you may be able to choose from is very wide.
Given the complexity of the euro mortgage process, your euro mortgage broker will strongly recommend that you secure provisional agreement on funding before signing any purchase contract, as often you will be asked to pay a deposit at this stage.
If for any reason you do not proceed with the house purchase, you will want to be sure you can reclaim your deposit. Your euro mortgage broker should be able to help you with this.
The types of Euro mortgage generally available include:
- Short term fixed rate euro mortgages
- Variable rate euro mortgage
- Long term fixed rate euro mortgages
- Capped rate euro mortgages (This means you will have the security that your monthly mortgage repayments on your Euro mortgage will not rise above a certain threshold during the capped rate term)
Euro mortgages are obtained from local banks in France, Spain, Italy, Portugal etc
To obtain a Euro mortgage you will need to have a Euro bank account from where your mortgage repayments can be withdrawn from. You will need to open this account not just for your Euro mortgage but to pay any other local bills such as utilities and tax.
Some Uk mortgage brokers will be able to advise you on Euro mortgages.