In the the past, several lenders offered “multi-currency” mortgages, where clients could change the currency of their mortgages during the term, but turmoil in the financial markets, poor economic performance of certain countries and the knock-on effect on foreign exchange rates led to big problems for less financially sophisticated clients. Many found that their repayments shot through the roof as a result of currency movements and they could not afford the repayments. These mortgages are no longer offered.
There are, however, several banks that will allow mortgages to be in the home currency of the borrowers for the duration of the term, which is quite different. This can be very attractive for those on fixed monthly incomes, where their salary or pension is the same every month, as they know that they need a fixed amount of that income each month to cover their mortgage repayment. Exchange rates are taken out of the equation.
Mortgage Direct works with banks that offer mortgages in Pounds Sterling (GBP), Swiss Francs (CHF) or Norwegian Krona (NOK). For the GBP mortgage, the conditions are very attractive at up to 70% of purchase price (or value of lower), 20-year term and a rate of annual Euribor +1.5%. The conditions for the CHF and NOK mortgages are not quite as attractive at 60% of purchase price (or value if lower), 20-year term and a rate from Euribor + 2.05%, but still many clients are interested in this product.
Current Mortgage Conditions:
Mortgage Interest Rates
Euribor (-0.012%) + 1.4% to 2.0%
Currently 1.4% to 2.0%
Fixed rates from 2.15% to 2.75%
Maximum Borrowing (lower of valuation or purchase price)
Fiscal Residents 80%
Non-residents up to 70%*
1 Euro =0.786 GBP
1 Euro= 1.130 USD
*Depends on client’s profile and country of residence.
Source: Mortgage Direct SL
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Mortgage Direct offer a bespoke service exclusively to all Lucas Fox clients. Clients may pre-arrange a Skype video call, which could be from a Lucas Fox meeting room, for example, and the experts at Mortgage Direct will be available to offer any advice and assistance required.