Sterling accounts for Mortgages?

[OilDigger]

I sure there are more than a few here who still have property and or savings in the UK and will be reluctant to move any of those assets across to Aus due to the current exchange rates.

 

I was given some information lately that you can park your money in a sterling account and use the this cash to raise a mortgage here, has anyone used this option and what are the positives and pitfalls, the obvious advantage to me is not having to exchange the cash in the current enviroment.

[Guest shooterguy]

I did some research on this a while back, the major problem will be that while the your pounds earn little or no interest at all while in the australian account. Whether it's worth it depends on how much interest you'd be losing and for how long.

I'm thinking there isn't going to be a significant exchange rate improvment for several years, it will likley get worse in the next couple of months if the FED prints money as expected next month and the BOE follows early next year.

 

I'm now thinking it may be better to tranfer into A$ soon and take advantage of the higher interest rate to make up some of the loss.