Euro mortgages could save British investors thousands of pounds

An increasing number of British investors buying property in European countries, such as France, are beating the exchange rate by taking out mortgages in euros, it has been reported.

Overseas Property Professional (OPP) has stated that individuals can potentially make a saving of thousands of pounds by borrowing euros and waiting until the GBP strengthens before repaying the loans.

Mortgage broker International Private Finance has seen applications for mortgages in euros increase by 70 per cent during January, compared to last year.

Elisabeth Dobson, head of private clients at World First, explained to OPP: "As cheap rates are currently available, they are taking the long-term view that the euro will weaken against the pound and their European property will ultimately become cheaper to buy."

The National Association of Estate Agents International recently said that France is likely to benefit in 2010 from not having an overpriced housing market.

This will ensure that prices in the country are at their most affordable for many years.

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