Euro Exchange Rate
Mallorca Property Update – Interest and Exchange Rate Strategies
Executive Summary about euro exchange rate By David Novi
Euro Exchange Rates
With general economic data releases and Spanish and Mallorca property market sentiment all making depressing reading we continue our monthly "better news" feature on interest rate movements and the outlook for Spanish and Mallorca mortgage holders.
Following the unprecedented rate cuts in the Euro Zone and UK last month which took base rates to 3.25% and 3% respectively further cuts came as expected this week that took rates to 2.5% and 2%, with further cuts on the horizon. Coupled with this good news is however the ongoing problem for UK buyers of Mallorca property, Sterling’s weakness against the Euro . For UK buyers with cash deposits in the UK a second way of acquiring without suffering with the penal Sterling / Euro exchange rate is to take out a Euro loan against the strength of the Sterling deposit. In summary a possible strategy for a UK buyer, with a good credit record and secure earnings, wishing to take advantage of the weak market to invest, would be to take out a Euro mortgage in Mallorca of circa 70% of the purchase price (taking advantage of the lowering interest rates) and look at a separate Euro loan, against a secure Sterling deposit, for some or all of the remaining 30% deposit. While it is unlikely that a purchase will not be able to acquire without any funds requiring transfer from the UK, a significant proportion of the purchase price can be obtained using Euro loans.
David Novi is founding Partner of Mallorca property agents, Novi Property Mallorca (http://www.novipropertymallorca.com), and Mallorca Chartered Surveyors (http://www.mallorcacharteredsurveyors.com)
David also writes articles on the Mallorca and Spanish property markets offering clients a detailed insight into market conditions generally and the attractiveness of individual investment opportunities. The Mallorca Property News web site displays a selection of these publications.
Understanding the Euro Rate
Executive Summary about euro exchange rate By Y. Tilden
The Euro is the official currency of 13 countries in Europe. The Euro rate is the current value and exchange rate of the Euro. The value of the Euro rate is greater than that of the US dollar rate. The Euro rate ultimately affects a great deal of the foreign exchange , or forex market. Negative factors such as war, drought and recession also affect the Euro rate. On the other hand, positive factors also affect the Euro rate. If you need more information on the Euro rate and the foreign exchange market , you can find a wealth of information on the Internet.
Check out my other guide on Exchange Currency
