Foreign Currency Mortgages

A foreign currency mortgage is normally taken on an overseas property, although can be taken on a UK property.

Instead of just offering you a mortgage in Sterling, a UK or Offshore bank will advance you the mortgage in a currency of your choice (subject to status & criteria) ie. US Dollars, Euros, Japanese Yen etc.

One of the main advantages of a foreign currency mortgage is that the borrower can benefit from lower interest rates than offered in the UK. The other advantage is that many of these mortgages can be switched between currencies which allows the borrower to take advantage of lower rates and also any positive currency fluctuations.

We would not normally recommend this type of product for inexperienced property investors, the product is suitable for high net worth clients or experienced borrowers who clearly understand the risks of the currency markets.

This type of borrowing is not one sided, the value of your debt may increase against the value of Sterling meaning that the amount you need to pay monthly can increase significantly. 

For more information of foreign currency mortgages, please call our specialist team on 0203 236 1003.