Euro loan for motorhome?

[John Russell]

Sterling is so low against the Euro that I'd rather borrow Euros to pay for a European motorhome, unless the interest rate is exorbitant.

Over the next few years my view is that Sterling is likely to be higher than it is now. If it's lower in the meantime, it'll mean higher monthly repayments, but I can live with that.

Has anybody done this, or know who would offer a Euro loan to a UK resident?

 

[tonka]

BUT. Unless you have Euros sat in an account then does that not mean every time you make a payment you would be at the mercy of the rate at that time ???

 

[John Russell]

Yes, that's right. If Sterling falls further, I'll be paying more each month:
"If it's lower in the meantime, it'll mean higher monthly repayments, but I can live with that."

If Sterling eventually rises, I'll be paying less each month, or borrow Sterling and repay the Euro loan at a lower cost.

 

[Kannon Fodda]

Unless you have a pile of Euros stashed away, if your normal currency is Sterling, what does the conversion charges and fees for each repayment do to the viability of your economics?

 

[John Russell]

Doesn't help, but I'm going to pay that anyway as I'm Sterling-based.

I'll probably save on multiple smaller conversions if they come in under Revolut's monthly limit versus a single large conversion on Transferwise or CurrencyFair.

But I'll pay the spread on the interest as well as the capital.

I expect the long-term movements in the currency to be much larger than the spread.

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