Exterior of the Spanish Central Bank in Madrid
Why get a mortgage in Euro?
Currency and exchange rates
When buying a property in Spain, the best is to take out a mortgage in Euro
Should I take out a mortgage in Euro?
When you take out a mortgage on a property in Spain, the best is to take out a mortgage in Euro – the same currency as the purchase price of the property.
Why euro mortgage?
This way, if you later need to sell the property, you are sure that the amount received from the sale will cover the mortgage and not come short due to a different exchange rate when selling the property.
What about the future?
When it comes to the exchange rate between the Euro and the currency of your income, the only thing we know for sure is that the exhange rate will be different tomorrow.
Jane and Jim bought a nice house in Spain in 2011. They did not want to take out a mortgage in Spain, so they re-mortgaged their house in the UK.
They bought the house for 100.000 euros in the summer of 2011, so with the exchange rate at the time (0.90 GBP for 1 €/1.11 Euro for 1 GBP), they borrowed 90.000 GBP on their house in the UK to finance the purchase.
In the summer of 2015, four years later, something happened and they decided to sell the house in Spain.
Now the exchange rate was 0.70 GBP for 1 Euro (1.42 Euro for 1 GBP). So, when they sold the house in Spain for 100.000 euros and sent the money to the UK to pay off the mortgage they had taken out, they only got 70.000 GBP for the 100.000 euros, leaving them 20.000 GBP short.
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Exchange rates for Swiss Franc since 1999
To get 1 €, you will need
Fri, 31 Mar 2023
Fri, 12 Oct 2007
Wed, 28 Sep 2022
Exchange rates for the last 2 years
End of day Exchange rates from European Central Bank
Is todays rate high or low?
If we look at all the end of day exchange rates from 1999 until today, we see that most of the time (more than 2/3) the exchange rate was between 1.11 - 1.55 CHF for 1 €
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