The euro is weak, while the US dollar and sterling are gaining strength.
The difference in currency rates is giving many potential home buyers, particularly expats, a variety of options to invest in both the UK and European property markets, experts find.
Expats paid in US dollars or in currencies linked to the dollar can make some bargain property purchases in the UK this year, according to offshoreonline.org . Home acquisitions in euro will be even cheaper.
People receiving their payments in sterling could get a good deal if they take out a mortgage denominated in euro. Within a year, the euro-to-sterling exchange rate has increased to 1.28 euro per one pound from 1.20 euro per pound.
According to Offshoreonline.org, an international and expat mortgage brokerage, apart from the UK, France and Spain will be good locations for property deals in Europe.
There will be further drops in interest rates for French mortgages in euro and a 10-year fix will be available from 2.7 per cent. Rates in the UK are also falling, available from 4.24 per cent, the experts say.
Guy Stephenson, a spokesman for Offshoreonline.org, comments
“For many expats, 2015 could be a good year to add to or start European and UK property portfolios. In the UK, mortgage availability is good, providing a buyer has a deposit of at least 25%. In France, the range of choice remains very large with many lenders asking for just a 15% deposit. In Spain too, the situation is easing, with long term rates from 3.50% above three month Euribor for tracker type products, whilst the position for Portuguese and Italian buyers is also looking up as lenders there re-enter the market.”
