Euro Mortgage
| We are specialists in international and foreign currency mortgages, including Euro mortgages. Overview The Euro is the official currency of The European Union, and is currently used in 16 of the 27 Member states collectively known as the Eurozone. The Euro is the second largest reserve currency and the second most traded currency in the World, after the US Dollar. Outside the Eurozone there are some 23 countries whose currency is pegged to the Euro. Cape Verde Is is one of them. The introduction of the Euro as a Single Currency for the Eurozone has brought much benefit for the region. The positive effects can be seen in Trade, Investment, Inflation, Exchange Rate Risk, Financial Integration, Effect on Interest Rates, Price Convergence and Tourism. Euro Mortgage A Euro denominated mortgage can be arranged when the property is located in a country whose currency is the Euro or when the borrower earns in Euros. Turkey and Cyprus may be an exception to this rule though as BHUK Group Ltd has facilities to lend in those two countries where the Euro is not the local currency. The current European Central Bank rate on which mortgage rates are calculated is 1.0%. Thereafter a variable margin, typical 0.8 - 3% is added. Another measure for Euro denominated mortgage rate is the Euribor. Rates can be variable, tracker or fixed and the maximum ratio of loan to value that may be obtainable from lenders is 100%. Conditions may apply depending on countries and lenders. The granting of such mortgage may however be limited to a minimum amount of 110,000 Euros. Capital and Interest Only mortgages are available with an Euro denominated mortgage. In some cases an all Interest Only mortgage may be 0.2% higher than a Capital Repayment equivalent |
Switching Important: In AUSTRALIA, CANADA, DUBAI, FRANCE, HONG KONG, NEW ZEALAND, PORTUGAL, SINGAPORE, SPAIN, UNITED KINGDOM (also) and UNITED STATES, BHUK Group Ltd can offer a switching facility where a dual currency loan is granted. There are 2 free currency switches, offered per calendar year and a fee of USD150 per switch applies thereafter. We consider such facility to be of utmost importance especially at times of great uncertainty in the currency markets. Also when/if a reduction in loan amount has been achieved through the change in exchange rate between two currencies e.g. the currency where the property is located and the Euro. Please note: Foreign exchange movements can be sudden and substantial and you must be able to tolerate a sizeable increase in your loan through such movements. At no stage should you expose yourself to high risks of foreign currency borrowings if you are not able to afford the potential losses that could result from adverse currency movements and the higher interest rate servicing costs that would be required of you due to your having a larger loan. Denominating debt in foreign currencies may not be suitable for you. If you have any doubts as to your suitability for borrowing in foreign currencies or your understanding of the risk involved, you should consult your financial adviser. Changes in the exchange rate may increase the equivalent of your debt, in whatever currency you deem important to you e.g. main income's. Your lender will not tolerate too great an increase in your loan as a result of currency losses and may opt to convert the loan back into the lender's specified base currency at a predetermined level. This may result in a permanent increase in your loan which is not fully compensated for by any other benefits. In this event, you could be left paying interest rates on a larger amount of loan than that you originally borrowed. |
