Mortgage in a Euro breakup?

M

Michael B

Registered User
Messages
13
Hi I'm wondering what would happen if there is a Euro break up and our savings were devalued by a return to the punt. Would our mortgages then be revalued relative to the currency devaluation. Thanks.
 
There has been a few threads on this but in short, no one really knows. Depends on how much of the Euro breaks up, what way the currency goes (not everyone thinks the punt would actually devalue for instance) and what way the banks are funded.
Personally I believe there are bigger issues at play should the Euro break up in a disorderly fashion. If it goes in an orderly fashion, then everything will be worked out :)
 
Michael B said:
Bigger issues than our savings and mortgages! Please tell? or maby don't!!....
Click to expand...

Should the euro collapse in a disorderly fashion, imports could (in theory) stop for a few weeks while the mess is sorted out. Think petrol/diesel and what kind of a knock-on could happen from a few weeks with none of this around.

To be clear, I honestly don't think it'll get anywhere close to this far. There are too many vested interested in keeping the system afloat. But then looking back to 2007/8 and some of those "crack-pot" comments people made about the worst case scenario that people were making about the banking crisis makes you begin to wonder.

One quote that is floating around sums it up
Milton Friedman said:
When that crisis occurs, the actions that are taken depend on the ideas that are lying around. That, I believe, is our basic function: to develop alternatives to existing policies, to keep them alive and available until the politically impossible becomes politically inevitable.
Click to expand...
 
Re: OP

Brendan,

What's your view on saving vs buying a property (via a mortgage) in Ireland given the Greek uncertainty and any possible knock on effects?
 
You must log in or register to reply here.
Back
Top