Currency Watch

This week the European Central Bank’s Governing Council sits down to discuss monetary policy. With inflation down to a provisional 0.5% for March the ECB will have to come up with another excuse for prices rising far more slowly than the annual 2% by which they are supposed to go up. 

Alternatively, the council could acknowledge the problem and do something about it. If it is the latter, the euro will fall in value. That possibility hurt the euro last week, costing it half a US cent and taking it a cent and a half lower against sterling. If, against the odds, the possibility turns into reality this week it will cost the euro more.

Best buys

Repayment

Rate

Duration

LTV

Description

2.30%  

20 years

80%

Tracker mortgage 3m euribor +2%

2.40%

25 years

80%

Tracker mortgage 3m euribor +2.1%

3.25%

25 years

85%

Rate capped + 1.5% for 10 years

3.50%  

20 years

80%

Rate fixed for the term

3.75%

25 years

80%

Rate fixed for the term

4.50%

25 years

85%

Rate fixed for the term

Interest Only

3.40%

15 years

70%

Tracker +2.05%

3.35%  

10 years

75%

Tracker mortgage +3.25% <500k +2.85% >500k

4.15%

15 years

70%

Fixed rate