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Britons in Europe: How have you been affected by the drop in the value of the pound?

The value of the pound against the Euro has fallen again in recent days following the UK government's mini-budget. But how will it impact your lives. We want to hear from you.

Published: 27 September 2022 09:36 CEST

Britons in Europe: How have you been affected by the drop in the value of the pound?

A photograph taken on April 22, 2022 shows sterling pounds coins and bankotes displayed on a table, in London. - The pound slumped more than one percent against the dollar on April 22, 2022 after official data showed tumbling retail sales as Britons grapple with a cost-of-living crisis. In London morning deals, sterling sank to $1.2887 -- its lowest level since October 2020, also as Britain's Prime Minister comes under renewed political pressure. (Photo by Tolga Akmen / AFP)

The pound is on the slide once again and that means for those living in Europe who have income in sterling, it can have a huge impact.

It is of course not the first time the pound has slid in value. We saw the same happen in the immediate aftermath of the Brexit referendum, which hit many of our readers hard.

British pensioners living across Europe who received the income in pounds were particularly hard hit.

Please take a minute to fill in this survey and share it with people you know. We’d like to explain just how a drop in the value of the pound affects the lives of those Britons living abroad.

Thanks for your time.

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Why falling US inflation could mean lower interest on your Danish mortgage

Inflation in the United States fell from 3.3 percent to 3.0 percent between May and June, while prices were up by 0.1 percent according to the latest figures from the US Bureau of Labor Statistics.

That inflation level is “surprisingly low”, the Danish Chamber of Commerce has commented.

It also increases the possibility of the US reducing its interest rate in September, which could eventually have the effect of lower interest rates on mortgages in Denmark, the organisation’s analyst said.

“It’s certainly good news for Danes who are hungry for slightly lower interest,” senior economist Tore Stramer said on July 11th.

Interest rates in Denmark, including on mortgages, have been higher since 2022 compared to previous years, when they were often close to zero.

That has made it harder for many households to make ends meet as well as for first-time buyers to get on to the property ladder.

Denmark’s central bank, Nationalbanken, follows the interest rate policy of the European Central Bank (ECB) but is nevertheless influenced by monetary policy in the US.

That is because interest rates in the US affect financial markets and thereby how bank advisors in Denmark assess mortgage applications.

“So it will be felt in Denmark in the form of lower interest rates when you buy a house,” Stramer said.

Trends towards lower interest rates are already evident in Denmark.

The ECB lowered its lead interest rate in June by 0.25 percent, followed by Nationalbanken.

The figures from the US are further evidence that interest rates have now peaked, according to Brian Friis Helmer of Arbejdernes Landsbank. They could also drop further, he speculated.

“We can hope that they get lower but we have to get a bit further into this year before that happens,” he said.

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