Tumbling exchange rates mean Brits with mortgages denominated in euros have been handed back thousands of pounds as loan values fall, according to international mortgage broker Conti.

For example, a euro mortgage of €250,000 taken out in February for a property in France, based on an exchange rate at that time of around €1.1 per £1 would have cost £227,000. Subsequently, the exchange rate has risen to €1.2 per £1, so it would now cost £209,000 to redeem the mortgage – a reduction of £18,000, or 8% in the cost in Sterling in just four months.

Conti said the rising numbers of euro mortgage borrowers are likely to benefit from Sterling’s rise against the euro over the next few years, as this will reduce the Sterling cost of the property purchase.

Clare Nessling, Conti’s operations director, said: “Even cash-rich buyers could consider taking out a euro mortgage until the exchange rate improves, at which point they can pay it back and ultimately reduce the price they pay for the property.”

Conti said investors should, of course, consider the impact on costs should exchange rates go in the other direction. These examples are based on Sterling strengthening against the euro, as widely predicted by experts, it said.

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