Mortgage application

We decided to borrow in France for a number of reasons. Firstly the Euribor rates are much lower then LIBOR rates. This means it is possible to borrow in France at 3,8% fixed for ten years - much lower than the equivalent LIBOR (Sterling) rates. Further by having a mortgage denominated in Euros we have a natural 'hedge' against our Euro property investment. If the Euro strengthens then the value of our house (in sterling) falls - but so does our mortgage. This still leaves us vulnerable to exchange rate movements for our monthly mortage repayments but we decided to fix those using a forward contract.

So on to the paperwork. Sheesh we had to provide copy bills, bank statements, marraige certificates, birth certificates, loan statements, payslips and P60's going back...well it seemed forever, letters from our employer - you name it they wanted it. The envelope weighed a tonne.

This all went off about two weeks ago and we were told it would take a week to make a decision. But this is a week in French time ;). We have to learn to chill and take things slowly... and buying a house is a very good learning curve!