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 Post subject: mortgages
PostPosted: October 24th, 2007, 1:12 pm 
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Joined: May 31st, 2007, 4:55 pm
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Location: BOLTON
in the process of sorting out a euro mortgage, i was advised to look at an intrest only option to keep payments down but i am put of this as you have to pay the capital off in stages so i would prefer a fixed rate over 25yrs. Has anyone any ideas, i have contacted barclays who have given me some figures but would welcome any further options. i have also heard that the euro mortgage rate is expected to fall in the next few months ? :?


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 Post subject: Mortgage
PostPosted: October 24th, 2007, 2:32 pm 
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Joined: June 12th, 2007, 1:04 pm
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Location: Yorkshire
Wrighty

I had a chat with a mortgage specialist at the Bella italia exhibition a couple of weeks ago. I have his details at home. Ill send his details if you want them.

Tyke


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 Post subject: Re: Mortgage
PostPosted: October 24th, 2007, 3:02 pm 
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Location: BOLTON
[quote="tyke2"]Wrighty

I had a chat with a mortgage specialist at the Bella italia exhibition a couple of weeks ago. I have his details at home. Ill send his details if you want them.

Tyke[/quote]

that would be great thanks, send us a pm:)


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 Post subject: Re: mortgages
PostPosted: May 27th, 2008, 10:21 am 
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Joined: June 12th, 2007, 1:04 pm
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Location: Yorkshire
Hi everyone

I thought I would bring this topic forward again for my own benefit.

Now that some will have very good recent experience with mortgages and banks etc, can anyone or everyone! post their experiences and or recomendations on their mortgages and bank accounts?

It would be very usefull for me and others.

With the current exchange rates I think Im going to opt to keep my sterling in a uk high interest bank account and go for a Euro mortgage at a lower rate. So then I wont have to exchange my cash yet. Anyone see any obvious pitfalls here?

Also why do we need to open an account in Italy? Cant we just open a Euro currency account in the Uk and pay bills etc from thi sviad standing orders etc? I have opened a US dollar account with CITIBANK over the internet and it was very easy. They also do Euro accounts so why not just do this. They have cheques and cashpoint cards etc.

Please speak up anyone who has already done the research!

Thanks in anticipation

Tyke


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 Post subject: Re: mortgages
PostPosted: May 27th, 2008, 12:24 pm 
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Hi I have looked at the 3 Barclays options and all appear to be good value, plus you can open a Barclays on-line bank account.
The person I have found to be very helpful is marialuisa.barbolini@barclays.it who has excellent English.

I never intended to have a mortgage, but I then thought that if Barclays were prepared to offer a mortgage, it would be a second opinion on the contract etc without relying solely on G&L as they inspect the property during the build process. Also it is a very cheap way of insuring the property as I understand it is a one off payment for the whole mortgage term.


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PostPosted: May 27th, 2008, 4:49 pm 
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I opened an Italian bank account with Barclays Milan 14weeks ago. I have received a debit card but no cheque book as yet. Barclays say they are having problems with the cheque books for non residents. I know I am not the only one having this problem. Is there anyone out there who does have a Barclays Italian cheque book?

Grazie


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 Post subject: Re: mortgages
PostPosted: May 27th, 2008, 5:03 pm 
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Just a couple of comments on some of the ideas suggested in this thread:

It is a sound strategy to hold your capital in your home currency while the euro trades high. Yes, and look to place the capital in a high earning account. In the UK at the moment it would at best be a net zero transaction, but does delay the exchange. Consider that your capital was going "offshore", so look at an offshore account, as long as the interest does not return to Uk (it would go to Italy) there could be tax advantages as these accounts pay gross. Offshore accounts are paying 6.5 to 6.8% gross. Your Italian mortgage is likely to be the same, or slightly less. Expect the euro rate to drop a quarter this month.

Be aware that the building insurance you pay in full for the term of the mortgage only covers the debt (and if it is a repayment mortgage then the cover decreases over time) - it is to ensure at least the bank gets the debt paid - that is why it seems cheap. It is wise to hold your own building and contents insurance in addition - apply to the lender and expect a discount.

Holding a euro account in a non-euro zone can have advantages (exchange can be easier, and timed to your advantage, plus your can obtain the best possible rate (e.g. a lloyds sterling offshore to lloyds euro offshore gets a good rate, particularly for large exchanges). However, using an offshore ATM is considered a cash advance by most banks and there is a hefty charge in the use, and there is a charge for cheque use. I would suggest an Italian bank account should still be considered as worthwhile.

Hope some of that helps, Tim


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 Post subject: Re: mortgages
PostPosted: May 27th, 2008, 7:47 pm 
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When deciding whether to go for Italian Mortgage (and leave capital in Uk) or self finance using UK capital, there are some other considerations too.

- There is a 2% Mortgage registration tax for Italian Morgage (on non-main residence purchases). This is calculated as 2% of loan value.

- Will be an additional Notary Fee for handling the Mortgage Deed as well as Title Deeds. In my own experience this effectively doubled the Notary fees (which are costly in the 1st instance) to take their total fees to a equivalent of 4.5% of purchase price. Of course every notary is different and may operate different charges. With no mortgae, Notary fee limited to Title Deeds only.

- Power of Attorney costs also double as need Power of attorney for Mortgage also

- When above 3 costs are considered, you could be looking at a significant premium ( typ 3-4% of purchase price) for the cost of financing by Italian Mortgage.


- Mortgage bank (Barclays Italy) will insist on you having an Italian bank Account as condition of Mortgage

- Fixed Rate mortgage is normally for term of mortgage and is of repayment type. Rate is higher than variable rate and your are paying for benefit of locking rate for the whole term (20years). If you have short-med term aims then may be better to go variable rate, interest only as you don't need the long term security benefit as much.


Hope this helps
John


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 Post subject: Re: mortgages
PostPosted: May 27th, 2008, 8:12 pm 
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We have completed and have a mortgage which we purchased from an Itailian broker and our mortgage is with an Italian Bank. Our broker was excellence she speaks English - We have a interest only mortgage at about 6% interest it is over 30yrs with a 3rd capital payment each 10 yrs. It is not fixed and we can pay it off any time. It is correct that you have building insurance included which covers the life of the mortgage - fire and explosion is the cover. I am going to check what value I am covered for on this policy as I am not sure whether it is the mortgage or property value. Remember too that you will pay €2 each month for the direct debit payment to leave your bank and go to the mortgage company.

Hope that helps

Jill


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 Post subject: Re: mortgages
PostPosted: May 27th, 2008, 11:55 pm 
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Thanks! What a great number of interesting replies on this topic. I was planning to pay totally cash for my purchase and get a better forward rate of exchange at the moment for my dollar. If I did decide to finance a smaller portion of the cost, I was planning on checking out Barclays, Italy.

There are always other bits and pieces to consider....so thanks for mentioning them.

Cheers!


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 Post subject: Re: mortgages
PostPosted: May 28th, 2008, 10:43 am 
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Joined: May 31st, 2007, 4:55 pm
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Location: BOLTON
i have a fixed rate for 25 years but with an option after 2 years to swith to either variable or interest only


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 Post subject: Re: mortgages
PostPosted: June 2nd, 2008, 10:19 pm 
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Hi there,

does anyone have any other contacts re a mortgage or mortgage broker other than going through Barclays?

Ali


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 Post subject: Re: mortgages
PostPosted: June 3rd, 2008, 6:23 am 
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Use Maggie - she does Mortgages and Insurance. I have a Mortgage with an Italian bank. galluzzovincenzo@libero.it

Maggie is based in Italy - Siderino Marina and she speaks prefect English.


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 Post subject: Re: mortgages
PostPosted: August 7th, 2008, 11:34 am 
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Location: n. ireland
when we bought i was told that as a self employed person that certified accounts were acceptable , but i have had a call from the finance company involved and they tell me that tax returns from the inland revenue are required. Has anyone else self employed tried to get their mortgage yet.? :?


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 Post subject: Re: mortgages
PostPosted: August 7th, 2008, 2:32 pm 
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Location: n. ireland
GROGDOG wrote:
when we bought i was told that as a self employed person that certified accounts were acceptable , but i have had a call from the finance company involved and they tell me that tax returns from the inland revenue are required. Has anyone else self employed tried to get their mortgage yet.? :?


just an update on this which i dont think is correct ,because if it was very few people would get their mortgage. This is his example sent to me for a couple earning £3000 after tax who have mortgage payments at home of £500pm(which for alot of people will be low) and £200 for other commitments ie credit cards loans etc.....


[color=#0000FF]Lets say that after tax you 2 earn 3000 sterlin per month.

The bank will just consider the 35% of this amount for your italian mortgage so 1050 sterlin, now deducting your monthly comintents what you will have for the italian mortgage is 1050-500-200 so 350 sterlin, now as an example I will give you the affordability amount for a fix rate mortgage over 20 years that is 47.5k sterlin so around 58.4k euros.

i think it should read net income - any commitments and then take 35% of that figure

3000-700=2300*35%=805 which would get 110 sterling which equates to roughly 135 euro.

i hope i am right :D


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 Post subject: Re: mortgages
PostPosted: August 7th, 2008, 3:43 pm 
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Hi Grogdog,

I found a photocopy of a leaflet I was given about a year ago - I think it was in a Sunday paper supplement. It says:

"Italian mortgages are not based on the UK models of income multiples. Lenders apply the European "affordability" approac to lending. Typically the calculation is as follows: The total of the Italian mortgage payment, plus UK mortgage/rent, plus any other long-term borrowings should not exceed one-third of monthly income. For example: If a UK mortgage repayment were £300 per month and the proposed Italian borrowing was £200 per month, monthly income would need to be at least £1500 per month for the bank to consider the loan. Potential rental income is not taken into account as revenue. At present self-certification is not available and full supporting documentation is required with all applications."

Don't know if this helps or not!!!??


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 Post subject: Re: mortgages
PostPosted: August 5th, 2009, 7:43 pm 
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thanks...nice post
interest only mortgage


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 Post subject: Re: mortgages
PostPosted: August 10th, 2009, 10:35 am 
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We ended up with Barclays and were very very happy with the deal, the people (in the Italian branches) and the overall responsiveness. (On-line banking from UK etc)
:D Fabrizio and Sylvia we thank you publicly. :D

I opened, then later closed a Lloyds offshore account as it cannot be used for rates/electricity/water etc ~ and their ATM cards would not work in many places in the south.

I tried other people for mortgages - and many would offer to arrange one with Barclays / Woolwich for you "as they had the best deals"; just do it yourself.

Our builder is the Chairman of the Chamber of Commerce in Cosenza and he was amazed at how good the Barclays terms were (at the reading of the deeds at the Notary) - no penalty for early payments etc.

I also did this to leave my capital in the UK so that I could move it when the rates are best: remember 1:1 at Xmas?? We are 17% better now - I could have lost all that in one go....


Also, save a mention for FAIRFX for pre-paid cards and capital transfers. MoneyMail rates them highly - and they are right! (I spend on my pre-paid Mastercard over here so I don't worry about identity theft. You can only lose what is on it - not your limit!!! I have four cards to spread what I carry.


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 Post subject: Re: mortgages
PostPosted: October 5th, 2009, 4:04 pm 
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Has anyone looked at getting a Euro mortgage on their UK home? Husband very against going for an Italian mortgage as the charges seem punitive and he is fed up with the Italian way of doing things which seems to mean extra expense and the different language and legal systems. Am trying to see if anyone, such as Barclays or Abbey offer this option and what the downside would be. We do not have a mortgage on our UK property.

:?


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 Post subject: Re: mortgages
PostPosted: October 5th, 2009, 6:05 pm 
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I looked at this. They would give me a GBP mortgage on my UK home, then I would get the best exchange rate available in one hit (not good eh!). Nobody would offer a euro loan on the UK property.

My calculations and my dreams led to the choice of borrowing euros in Italy and transferring the payments whenever the rates were good (fortunately I have up to February already over there! - the rate is looking much like last year at 1:1 and then hopefully a recovery).

I hope over the period of my loan to pull back some advantage - incidentally for us the overall costs and charges were better that way round, and if the world goes really pear shaped, your UK home is totally secure with no charge over the property. If I had gone for the UK mortgage I would have made my exchange rate loss all in one go with no hope of pull-back.

We are each our own expert, but this one works for me.


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 Post subject: Re: mortgages
PostPosted: October 6th, 2009, 9:47 am 
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Thanks for that dmbt54. I have looked at getting a Euro mortgage through Barclays, Italy. Already have an Italian account with them and am a UK Barclays customer. The cost of setting up an Italian mortgage seems enormous and even with the poor exchange rate seems hardly worth it. Also the pdf from their website is as usual, confusing. For example the early redemption sections states that there is a 3% charge but that there is no charge if the contract is intended to purchase or refurbish a property. This is typical Italian speak that contradicts itself. Most mortgages would be used for this purpose. This is enough to put my hubby off using this.

Trying to convince hubby of the sense of getting a Euro mortgage rather than taking the exchange rate hit, in one go, but not succeeding.


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 Post subject: Re: mortgages
PostPosted: October 6th, 2009, 11:06 am 
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After hours ,days weeks of paperwork to get an offer of a euro mortgage which we did I decided against it because of the hassel with transferring money etc and the payments changing every month .I took mortgage here on our home husband not happy in case our home was in jeopardy, but so far I am happy because I know exactly how much it will cost each month so I can budget and I do not have the expense and hassel of changing money also the sterling -euro rate has gone down since I changed my money and the euro repayments would have cost me more each month rather than what was predicted i.e. the pound getting stronger.
My big fear was the pound becoming really strong against the euro and my property not covering the sterling loan but that so far has not happened it is the euro that is getting stronger and there is at this stage no prediction for it to drop in fact the currency exchange people have said it is possible sterling and euro could go to equality and did temporarily a few weeks ago.
This is just my experience it has no guarentees but then neither does taking a euro mortgage and the cost are very high for that. Good luck with your decisions it is not easy :? but it is good to have knowledge of other peoples experience.


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 Post subject: Re: mortgages
PostPosted: October 6th, 2009, 2:41 pm 
I decided on an Italian mortgage through Barclays, it was very complicated and time consuming but eventually got it!!
I borrowed the maximum amount and am happy as i can access details online and pay around 2.5% .


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 Post subject: Re: mortgages
PostPosted: October 6th, 2009, 8:46 pm 
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Thanks for all your comments. Given us extra info to think about.

Looking at the latest pictures of our complex I cannot see us completing this year so will keep fingers crossed that the sterling/euro rate will improve for time of completion. At least 50% has been paid for.

:)


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 Post subject: Re: mortgages
PostPosted: October 6th, 2009, 11:08 pm 
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As a financial adviser I would strongly recommend that you consider taking out a euro mortgage on your Italian property.

That way you won't be taking an immediate hit on the exchange rate (your monthly repayments will be affected by the exchange rate, of course, if you are paying from your UK income, but will you have more control over timing - eg you can exchange several months' repayments at a time when the rate is favourable).

Also you will probably pay less interest over the life of the mortgage, and lastly your mortgage wil be secured on the Italian property, isolating that risk.

I did ours through Barclays Italia; it was a little longwinded compared to a UK mortgage but it worked out fine in the end. Sounds as if you have plenty of time to sort it out anyway!


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 Post subject: Re: mortgages
PostPosted: November 11th, 2011, 10:45 am 
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Location: Carmarthen, south west Wales / Santa Maria di Ricadi, Capo Vaticano
Just to puit this discussion under the correct heading.
This is my reply to bearandcub's comment on euro mortgages he posted on the "Poste Italiane bank account - on line registration" thread.

If any country did pull out of the euro and revert to their former currency, there is no doubt what bearandcub has said, properties would devalue and be worth a lot less than at present.
However if you have a euro mortgage, the contract with the bank is a legal binding contract and would stay in euiros. I just hope that Italy stays in the euro and that Germany/France agree to a limited amount of Quantative Easing. This will devalue the euro a little to our benefit in the UK.
I will post this reply on one of the Finance topics.
What is your take on this Tim Jones?
davidnam


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 Post subject: Re: mortgages
PostPosted: November 11th, 2011, 1:53 pm 
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davidnam wrote:
This will devalue the euro a little to our benefit in the UK.
davidnam


Benefit depends on perspective.

A low Euro / high Pound is good for daily spending in Italy when living in the UK or when buying property.

A high Euro / low Pound is good when valuing or selling property you own.

The worst situation, for many people, would be to end up with a Euro mortgage at a high Euro rate to the Pound because there's a Franco /German core group that is prosperous while Italy returns to a low Lire / High Pound situation so that property values in Sterling collapse.


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 Post subject: Re: mortgages
PostPosted: November 11th, 2011, 2:35 pm 
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Hi gsullymorgan,
I agree with what you state.
I was thinking only in the terma of those with a euro mortgage and living and paying it from the UK
davidnam


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 Post subject: Re: mortgages
PostPosted: November 11th, 2011, 3:51 pm 
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Lorica,
I have a Barclays account with 2 x atm cards and a cheque book. I opened this in England and to be honest I have had no problems with it.


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 Post subject: Re: mortgages
PostPosted: November 11th, 2011, 3:56 pm 
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I think first thing to say is that the markets have not priced in any scenario where Italy leaves the euro-zone or abandons the euro. So much of the discussion is somewhat premature. Having said that a plan is in place and it goes something like this: a country leaves the euro, it nominates a national currency (likely to be a new currency, not necessarily a historic currency – so not necessarily “termed” Lira or Drachma or Franc etc). So let us say Italy chooses (or is required!) to leave the euro – it nominates a currency – let us say the Italian dollar IT$ - it would be pegged to the euro on the currency market for some length of time (at least a year, maybe significantly longer). This allows a managed transition. Commercial contracts (bonds, warrants, treasuries, instruments etc) are usually termed along the lines of value (in a currency) or equivalent (so allowing for alternative valuations). Mortgages (retail, domestic) are not (usually) so you would be contracted to repay in the nominated currency.

I’m not convinced that that scenario would cause a crash in property values – that happens if the desire or ability for a non-domestic market disappears – in the case of most properties purchased by members on this forum. That is – is there still a market for non-resident-Italians to purchase a holiday home – and that relates to whether their economies/incomes will support the purchase of a holiday home. For example if a property in Calabria is currently valued to a foreign market at €100k, and Italy reverts to a national currency and that currency then weakens to half value (with respect to the euro), then there is no reason to assume it could not be valued at IT$ 200k. The costs to a domestic market for a domestic purchaser will differ of course; they would see dramatic inflation to observe a stable property market assuming incomes can maintain that pace. Of course the foreign buyer might be attracted to the purchase of an Italian property - the running costs, and the costs of the time on holiday in Italy will be significantly attractive - with respect to their national currency, again assuming that the IT$ devalues.

There would be an added complication in the above scenario – a country returning to a national currency would then have the ability to set commercial and domestic interest rates – not based on the Euro Central Bank – so an Italian held mortgage could get interesting – if you assumed that in that scenario the interest rate was to increase significantly.


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 Post subject: Re: mortgages
PostPosted: November 11th, 2011, 9:17 pm 
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Thanks Tim,
It has put everything into perspective.
It looks as if the crisis may have turned a corner today. If the worse comes to the worse it would not only create a crisis in the Euro zone and devastating for the UK. The global economy would be affected and I cannot envisage that Merkel and Sarkozy would allow this to happen.
davidnam


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 Post subject: Re: mortgages
PostPosted: November 11th, 2011, 9:36 pm 
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Hi again Tim,
Barclays Libero Mortgage is linked to the 1 montn (365) Eurobor rate +teh spread of 1.4%.
In the last few days the rate has been dropping since the end of last month. On the 4th of this month it dropped dramatically (from 1.36 to 1.247. It is 1.201 this evening.
I am aware that the ECB dropped its rate 25 points at the beginning of the month so I assume that the drop in the Eurobor is coloured by that. Are there any other factors that affect the Eurobor? I heard on the radio a couple of nights ago that the Interbank rates had increased in Europe
This is the definition I have read
"Euribor is short for Euro Interbank Offered Rate. The Euribor rates are based on the interest rates at which a panel of 57 European banks borrow funds from one another. In the calculation, the highest and lowest 15% of all the quotes collected are eliminated. The remaining rates will be averaged and rounded to three decimal places. Euribor is determined and published at about 11:00 am each day, Central European Time.".
I am confused, can you explain?
davidnam


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 Post subject: Re: mortgages
PostPosted: January 6th, 2012, 11:45 am 
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An opinion on euro mortgages (not sure I agree with all points myself, but an opinion never-the-less), from CityWire a few days ago don't have original link sorry ....



Among British investors with euro-denominated mortgages on foreign properties, there’s uncertainty, even panic.
How would a collapse of the euro affect Brits with mortgaged properties on the continent? Linton Chiswick has the advice you need.
Panic on the streets of Athens
Each week adds another voice – a ratings agency, analyst or politician – to the chorus predicting the likely end of the euro, at least within the currency zone’s most indebted countries.
Meanwhile, on the lively internet fora representing the almost quarter of a million British investors with euro-denominated mortgages on foreign properties, there’s uncertainty, even panic. Brokers report a rush to convert euro mortgages into sterling, a risky endeavour at the best of times, but even more so when the ties between property value and loan value are being severed in such choppy, unpredictable, uncharted waters.
A British resident with a second home in, say, Greece with a euro-denominated loan from a Greek bank could face a scenario in which their euro loan is recalculated as a drachma mortgage; and a number of related economic side effects would be likely. The most worrying – and those emphasised by the more pessimistic commentators urging an exit from euro-mortgages – include a currency collapse after the drachma is released and left to swim upstream.
Local banks would do everything in their powers to recover what they’re losing from hyper-inflation and interest rates would be their primary weapon. Property prices would plunge, and property owners would find themselves caught in the negative equity of their worst nightmares.
Time to switch to sterling mortgages?
So, should investors try to switch to sterling mortgages? Should they sell up completely?
No, according to John Charcol’s Ray Boulger, who takes a more fatalistic, if not optimistic, view of the situation.
‘Having a mortgage in the same country as the property itself,’ he says, ‘and having a mortgage compared to owning the property outright, will – to some extent – work in your favour to mitigate the losses on a property that’s losing value, because the loan will become devalued too’. Something of a hedge, in other words.
To the list of positives, he suggests adding the improved letting potential of a holiday property located in a country with a weak local currency; and its personal usefulness to the investor. It’s a cheap holiday, when you want it.
In any case, he adds (and here’s the fatalistic bit) it’s probably too late to sell up. The euro currency is, he believes, right on the brink.
Worst-case scenario
A much more worrying scenario is the euro-denominated mortgage on the Greek property with the bank situated in an economically more robust country. A property plummeting in value in Greece, paid for by a mortgage with a German bank, indeed any disconnect between the loan and the property (exacerbated in this instance by an income stream in a third currency, sterling) adds a level of unpredictability that would be a nightmare to try to live with.
Under these circumstances, immediate action is certainly worth considering, even if it does involve crystalising losses.
The worrying reality is that it’s difficult to talk about potential outcomes in anything other than broad strokes. Much depends on individual mortgage paperwork, and it’s unlikely that the majority of mortgages make provision for the sudden adoption of a new currency. Terms and conditions can be surprisingly fluid, too, with lenders reserving the right to break fixed-rate deals in extreme circumstances when it’s in the best interests of the bank and its shareholders. Much of the detail will be thrashed out by lawyers.
In the meantime, while the government apparently readies Royal Navy ships to pick up stranded ex-pats from the European mainland in the event of a full-scale economic meltdown, borrowers with euro-denominated mortgages might be advised to call their lenders and make contact with a trusted specialist broker even sooner.


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 Post subject: Re: mortgages
PostPosted: January 6th, 2012, 1:36 pm 
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Not a cheery read.

I am no expert in the matter, and would love to be corrected, but is the only way out of a massive national or international debt not to start printing money?

The ECB is printing some money and lending it the banks but not to the states because, essentially, Germany does not want that. So if Greece leaves the Euro, because it is such a hardship to pay back, they can print their own money to pay of debt, they will have massive inflation (again) and their exported products (feta cheese) will be cheap.

But if the ECB instead prints that money and hands it over to the nation states that need it, the euro will devalue, making european products cheaper which is good for Germany as they export the most, and it will make european property cheaper to buy for people with other currencies, provided they are not devaluing faster than the euro.

Germany is resisting until the last minute to impose some sort of discipline on it's unruly southern neighbors and get conditions that are important to Germany and then the presses start rolling to print euro's until we are back to parity with the dollar which is where we started 10 years ago.

It is not so much a euro problem as a debt problem and the strongest euro countries don't agree on the mechanisms to address that, yet, but they will.

Where am I wrong?

Buona Befana (http://en.wikipedia.org/wiki/Befana)

Dennis.


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 Post subject: Re: mortgages
PostPosted: January 20th, 2012, 7:15 pm 
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Joined: January 20th, 2012, 4:24 pm
Posts: 65
Location: Italy
from italian bank , mortgage to buy in italy , jan 2012 , multioption selection
Example , 30 years duration : first time three years fixed interest rte 5,10%
THEN two possibilitis , based on pre-fixed 3,30% Spread
A> 3,30% Spread + current ONE MONTH euribor
B> 3,30% Spread + current euriris of selected period
more info by www.lifeinitaly.it


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 Post subject: Re: mortgages
PostPosted: February 22nd, 2012, 4:21 pm 
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Location: Carmarthen, south west Wales / Santa Maria di Ricadi, Capo Vaticano
Good news for those with mortgages linked to the one month Euribor rate. It is down to 0.595% today. I wonder if it will drop further to around 0.453% as it did in January 2010?
I still don't quite understand why the Euribor is dropping with the current financial situation in Europe.
Tim (Jones) can you explain this?
davidnam


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 Post subject: Re: mortgages
PostPosted: February 22nd, 2012, 10:06 pm 
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Simple - excess liquidity - the ECB just can't stop printing the stuff - but the banks don't want to inter-lend - just not sure who or what might be at risk on the longer term. All banks are
heavy on risk hedging . If you can gain any benefit from this then enjoy it while you can.


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 Post subject: Re: mortgages
PostPosted: March 23rd, 2012, 8:53 pm 
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One month Euribor is down to 0.433 today and still dropping, the lowest for 12 years. This is at a level lower than it was at it's previous lowest level in March 2010.
Good for Euribor linked mortgages and how long it stays at this low level. A lot depends on what the spread that was agreed when taking out the mortgage. I have noticed that the spread on current euroibor linked mortgages is higher than in previous years.
davidnam


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 Post subject: Re: mortgages
PostPosted: April 10th, 2012, 12:03 am 
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Location: Carmarthen, south west Wales / Santa Maria di Ricadi, Capo Vaticano
The 1 month Euribor rate has been dropping since mid November and seems to be levelling out, currently at 0.414 the lowest level since at least 1999.
For those interested this is the url link to view the Euroibor rates.
http://www.euribor-rates.eu/euribor-rate-1-month.asp
The euro is a little over 1.21 this morning. Let's hope the trends keeps on going which will help us from the UK.
davidnam


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 Post subject: Re: mortgages
PostPosted: August 27th, 2012, 1:33 pm 
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The 1 month Eurobor rate continues to drop and is at 0.122% today, but I annot see it drop much further. It is an eleventh of what it was on the 1st November last year. The affect of this is that it reduces a monthly mortgage payment by just over €100 / month on a €100.000 mortgage since then.
With the GBP to the Euro today at about 1.26 - 1.27 (was 1.29 not long ago, it makes life a little easier with the present economic climate and increasing taxes in Calabria.
davidnam.


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 Post subject: Re: mortgages
PostPosted: November 28th, 2013, 5:53 pm 
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The i month Euribor rate has been moving up since August and this past week has shot up to 0.163 today.
Can anyone explain what has happened for this to go up so rapidly?
How about it Tim?
It is relatively still low but the Italian economy is still not that brilliant and the Euro up to 1.20 to the GBP this morning.
davidnam


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 Post subject: Re: mortgages
PostPosted: July 3rd, 2014, 4:36 pm 
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Location: Carmarthen, south west Wales / Santa Maria di Ricadi, Capo Vaticano
Good news for those on mortgages linked to the Euribor,
Since I last posted on the Euribor in November, the interest rate in the Eurozone has been recently been cut, The one month Euribor is now the lowest it's been at 0.096 since I have been tracking it in the past 5 years.
For new purchasers of property it's a great time to buy with the GBP - Euro exchange rate at 1.25 and the low Euribor.


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 Post subject: Re: mortgages
PostPosted: September 12th, 2014, 10:27 am 
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Lots have happened in the Eurozone in the last 2 months since I last posted a comment.
The one month Euribor rate is down to it's lowest level ever at 0.01%! Those on a variable mortgage linked to the Euribor are basically only paying their agreed spread.
With the Eurozone interest rate now at 0.05%, the GBP to Euro likely to rise above 1.26 after the Yes / No vote if it goes the right way ie is to keep the Union as it is.
This is a good time to purchase a property.
Anybody interested in buying a 2 bedroom apartment in Capo Vaticano?


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 Post subject: Re: mortgages
PostPosted: September 13th, 2014, 12:03 am 
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Thanks David for that info. I visited Capo Vaticano for the first time in May and it was lovely.


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 Post subject: Re: mortgages
PostPosted: September 13th, 2014, 10:10 am 
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Wow !! It's dropped further to 0.07% today and may get even lower although at these low rates you are talking very small change in mortage interest.
Evie, I am really in 700m. by road above Santa Maria di Ricadi at about 90m above sea level in the Capo Vaticano area a about 2.5 km from the 'Belvedere' viewing area with that fantastic view.
I am flying out tomorrow for 10 days spending 4 nights in Sicily. So looking forward to it and hope to catch the end of the 'Blues Festival'.


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