will euribor rate fall now ECB has cut rates??

Simon

you are correct in the "lucky" part in my opinion what all should do is find a figure that works for them worst case and then forward buy-yes they culd lose out but as you readil ypoin tout the piece of mind is of equal importance, speaking t soem clients hwo are traders this morning and they dont see the euro staying as strong in the long term-lets all hope that they are correct!

shaun

Shaun, lets hope not everyone sees the glass half empty as i do,

still, i will be in spain next week so life is not all that bad....

With the forward points minimal, ie 15 points in the favour of a euro purchaser, we need the spot a lot higher.

cheers

simon

Has Euribor really dropped that much in 6 months? At our last 6 monthly calculation our mortgage dropped €80pcm. We have just received our next 6 monthly recalc and it has dropped by a further €260pcm!! Time to start squirreling away some of that extra ready for the inevitable increase sometime in the future .

Mark

What goes down must go up!!

Think you are very wise to stash some cash for the inevitable rainy day. I think we probably have 12 to 18 months at these levels and maybe even a touch lower, but we shall see. With a 6 monthly revision subject to how the economy pans out you may see a further small benefit later in the year but the bottom may have hit before the next one - having said that I dont think the initial momentum back up will be massive but I think it could start to accelerate as we start having to address the problem of inflation ............................................... lets all look into our crystal balls ....................................... would that our esteemed global leaders had access to one ......................................... or had even taken notice of wise sages such as Warren Buffet or the Wall Street Journal in 1999. I imagine they were too busy listening to the likes of Grant Bovey and Anthea Turner instead - esteemed economics commentators indeed.

Dont forget to also consider the exchange rate specially if your income will be in sterling, people I know have lost quite a few hundred euros a month in their pensions due to this and they are now struggling to pay the euro mortgage.

Some very sensible comments there from Smiley, rates wont be this low forever, best to make hay whilst the sun shines!!!

despite policitians seeing "green shoots of recovery" as a UK based IFA for over 20 years I have offered my opinion to many clients that it will be 18 months+ before we find ourselves in a "normal" marketplace once again.

 what does make me laugh mind is the fact that when base rates in the uk were cut to 0.5% someone in th house stood up and proclaimed that the lenders must pass these cuts on to the public ..........now that most banks are known as "bank of government" this hue and cry has not been heard again!

Lenders are making on average circa 2.75% on each mortgage where in the prime (putting aside adverse/ subprime lending) they were making circa 1.2%!

 It appears a "common" strategy for those who are uK based and have a mortgage in Spain is to raise from the UK mortgage use this money to pre buy euros that said decent rates ar eonly available in the Uk for those with 60% or less loan to value.