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Fellow investors:
Please excuse me if this has already been covered.
This question applies to buying in the UK only with external funding, however it can obviously be adapted…
As investors were are all on the lookout for sources of cheaper finance. We tend to look within our own country for purchases within our own country. Has anyone sourced finance through any OTHER European country for purchases in the UK? I understand that there are attractive interest rates to be had abroad: can we make use of these rates? If so help and advice appreciated.
Regards, Malik
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Not an expert Malik mate, but check the LTV levels - I've a feeling they're lower outside these shores.
Germany looks like a great market (to buy and to borrow in) but the leverage allowed is significantly less than the 85% enjoyed by us BTLers over here.
cheers
John |
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John,
I don't know whether or not you can borrow from a Spanish Bank against a Property in another EU state, but, at the moment the interest rates here are around 3.6% and the LTV (as you are not a Spanish citizen) will be 70%
Hope this helps
Tony |
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malik,
many banks are not comfortable lending outside of their country on a mortgage by mortgage basis.
also if you want to hedge the currency that you are borrowing in against the currency the asset is denominated in you may find that there is no arbitrage (i.e it is no cheaper).
tom
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Thanks guys,
That explains it. I see your point Tom: it is logical and a point that I did not consider... I guess we will have to wait untill, dare I say it, the creation of the United States of Europe to bag a cheaper rate... (But maybe it will be even higher than it is in the Uk today!!).
Thanks again Gentlemen,
Regards, Malik |
