Key issue:
Exchange rates
Case study:
Northern Ireland Property
Date:
2006-04-04
Mortgage amount:
200k

Outcome

Choose euro mortgage in preference to sterling mortgage on account of lower interest rates

Detail

General principle is to match borrowing currency with rental currency to avoid excjange risk.This situation involved interest rate differentials resulting in a 25% of rental income impact.Client was happy that currency change against her of 25% was unlikely to happen and was happy to live with exchange risk.Clietns primary income is also in Euro.

 
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