Bri and Katee

Just been doing our annual finance check and had a shock. All of our plans to retire mortgage free in 2013 could be out the window.

After doing the sums, the difference in the current € / £ exchange rate means we will come up short £53.000 on the mortgage.

We can only hope that property prices in the UK rise again along with that elusive exchange rate. It's sure to, but whether it can do so in 3 years is another thing.

So aside from the obvious in affecting pensions, how has the current exchange rate affected some of you?

bobd22

Much the same as you was hoping o retire in late 2012 pay the mortgage off and move over but as you say although the mortgage comes down in euro keeps going up in £. I can work on at least but not what I want to do or expected to do. As for exchange rate lets face it, it will not go up again untill the politicians want it to look at last week went up couple of cents BOE spokesman mentions double dip recession down it comes. Whas that accidental I think not it's where they want it. What's the answer no idea. Hard lesson only take a mortgage in currency you earn in.

jdr

But we would be laughing if the exchange rate had gone the other way though. ;-)

jojojojojo

Same here! My OH earns in sterling and gives me a set amount of sterling per month. obviously I have to change it into euros. Its gone down by about 30% since we've been here, so I've had to economise quite drastically

Jo xxx

bobd22

Yes valid point but unfortunately it didn't. to be honest I thought long and hard and even took into account a drop but not the drop we've taken. Maybe there will be a miracle and it will go back up a bit (whats that going past a flying pig?)

jdr

Yep, 30% is a lot to recover.

Bri and Katee

Yes got to agree with you. The times sterling has seemed on the way to recovery since Xmas are many, then the BoE spokesman (Merv King) opens his mouth and we watch it tumble down again. That is no coincidence, as you say, currently the £ is at a rate that both the bank and the government want.

Rotor

For me 1 to 1 is fine as if I ever want to sell in Spain (assuming its possible)and move back to the UK I`ll get a better deal than 3 years ago so for some of us its better now than ever!

fionamw

We've just had more arguments! .... his generosity has taken an upturn in recent weeks since the stock exchange has been doing better

It sometimes seems to be thought of as 'hedging your bets' or being too wimpish to make the move but OH's kept a base in the UK so we have an insurance policy (in theory at least) against the vagaries of exchange rates shifting in whichever direction.

bobd22

Yes there are winners and losers in everything! great if you're a winner but not so good if you are a loser Just a shame to try and plan for retirement for years and try to make it a bit better to be bit like this. Still as Gordo has taken off every pensioner, well so long as they've worked and paid there taxes and so called National Insurance, we shouldn't expect him to be bothered what happens to rietired expats. He along with his mate Tony will be ok in their retirement

Lynn R

A dear friend of ours who has bought a house near us in Spain with the intention of moving here when he retired has just been diagnosed with asbestosis and told he has less than a year to live. No retirement for him to look forward to at all now, in either Spain or the UK When you hear something like that it really puts into perspective our grumbles about the effect the fall in sterling has had on all our plans, difficult as it may have made things.

Of course we have been affected like everyone else, but we had paid off our mortgage before we moved just over 3 years ago. We calculated that we could live off our savings and investment income until our pensions became payable. So far that has been perfectly possible although we haven't felt as well off as we would like, and now my OH has started to receive his local authority pension (only a small one, a couple of thousand a year) we feel almost rich!

HBG

Our income is down 30% like most other expats and it hurts. We could never imagine going back, but I did some calculations a while back, reluctantly, and the Never word is wobbling.

We keep the dogs injections up to date, just in case.