How do I select the most appropriate borrowing currency in Poland?
Polish mortgages are currently available in a range of different currencies – EUR, GBP, USD, CHF and PLN. The main risk of borrowing in a foreign currency is that the cost of the loan is unpredictable as a result of exchange rate fluctuations between the loan currency and the currency of your income. For example, a UK investor being paid in sterling, who took out a PLN loan in late 2003, would have seen the real cost of their loan increase by 15% due to the appreciation of the PLN against sterling. For this reason, Poland Mortgage Direct recommends taking out a loan in either the same currency that you are paid or the same currency of the income of your property, unless you are comfortable with the risk and hope to profit from a positive currency movement. Some lenders we deal with stipulate that the loan currency must be the same as the income currency of the borrower. Whilst loans in Swiss Franks (CHF) currently offer the lowest interest rates, a Euro-denominated loan is perhaps the
