Multi-Currency Mortgage
This type of mortgage works by enabling the client transfer the debt of their mortgage into different currencies, allowing clients to even have their mortgage tied to several different currencies at the one time. The advantage would be to have your mortgage in a weak currency or where the interest rate is very low. This would result in combined capital reduction and a cheaper interest rate.
Example – if a client has a £1million mortgage which is switch to US dollars when the exchange rate is $1.80, this means the mortgage is now $1.80 million. If the pound then gains against the dollar to say $2 – then your mortgage debt would now be reduced to £900,000.
Mayfair Consulting offer multi currency mortgage to client that have an understanding of exchange rate values and future rate forecast. This is clearly a very high risk mortgage but could offer major benefits if correctly transacted. Remember currency values can go up or down so you could be left with paying more debt.
The fees charged by lenders offering these specialist mortgages are high. There are annual management fees, performance fees and currency transfer fees. This type of mortgage not cheap and will appeal to the HNW clients. Client that usually take out these mortgage have the minimum £500,000 + in debt.
Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The overall cost for comparison is 7.1% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. There may be a fee for the mortgage advice. The precise amount will depend on your circumstances, but we estimate it will be 1.5% of the loan amount with a minimum fee of £500 added on to the loan.
Mayfair Consulting Limited is an Appointed Representative of The Mortgage Times Group Limited, 279 Tottenham Court Road, London , W1T 7RJ , which is authorised and regulated by the Financial Services Authority no. 303007.
