P544 Teletext 546 Jan 2 00:11:01    ————————— ———————  ———————————— THE BIRTH OF THE EURO MORTGAGE 1/5 The arrival of the single currency means that banks and building societies can offer mortgages, denominated not in pounds, but in euro. Euro mortgages will recall the foreign currency loans that were briefly popular in the late 1980s. But while these loans offered very good interest rates, they became expensive when the pound fell, and even lenders are urging caution over these products. ——————————————————————————————————————— by Mark Meadowcroft MOVE TO A MORTGAGE THAT CAN ONLY MOVE DOWN. SEE p628 Mortgages Savings Borrowing Euro Money
P544 Teletext 546 Jan 2 00:10:00    ————————— ———————  ———————————— THE BIRTH OF THE EURO MORTGAGE Abbey National expects to be one of the first lenders in the euro mortgage market, with a product launch due by the end of January 1999. The Abbey's Mortgage Product Director Margaret Schwarz says: "We don't think there will be a huge queue at the door. "It's aimed very much at people paid in the euros. It wouldn't be sensible for people with an income stream in pounds to take out a large liability in euro." ——————————————————————————————————2/5—— Check the top borrowing deals 545 CITY NEWS p500 Mortgages Savings Borrowing Euro Money
P544 Teletext 546 Jan 2 00:10:10    ————————— ———————  ———————————— THE BIRTH OF THE EURO MORTGAGE Abbey National's Margaret Schwarz says her company is "dipping a toe in the water" of euro-denominated mortgages. But she doesn't think euro mortgage rates will be much lower than rates being offered in the domestic market. "The euro mortgage rate will be about 5% You can get sterling mortgages at little over 6% so the difference in monthly paxlfnts is probably not worth the currency risk. ——————————————————————————————————3/5—— All the best savings rates 546 NOW IT'S EVEN EASIER TO FIND LOVE: TELETEXT DATING ITV p390 Mortgages Savings Borrowing Euro Money
P544 Teletext 546 Jan 2 00:10:11    ————————— ———————  ———————————— THE BIRTH OF THE EURO MORTGAGE The cautious approach to euro-b—sed mortgages, unless the borrower has a income in the single currency, is echoed by mortgage broker Sally Laker. Ms Laker, of Mortgage Intelligence, says people "should think of it as a foreign currency mortgage". "The thing to bear in mind is that while rates may be more attractive, the exchange rate comes into play, and can make a huge difference." ——————————————————————————————————4/5—— Need a loan? - borrowing rates 547 PLAYING FTSE p517 Mortgages Savings Borrowing Euro Money
P544 Teletext 546 Jan 2 00:11:10    ————————— ———————  ———————————— THE BIRTH OF THE EURO MORTGAGE But another mortgage expert is far more forthright, suggesting homebuyers should treat the euro as "no-go zone". "Your Mortgage" magazine editor Andrew Stuart says: "UK homebuyers should steer well clear, as long as we are outside the euro. "Thousands of UK borrowers got badly caught out in the late '80s and early '90s when they were sold on the low rates available with foreign loans." ——————————————————————————————————5/5—— How many $ to the £? 548 POPULAR SHARE CHECK p519 Mortgages Savings Borrowing Euro Money