Foreign Currency Mortgage
Clients taking out a foreign currency mortgage benefit from lower interest rates, although the majority of clients using this type of mortgage are likely to be purchasing a property abroad.
Using a foreign currency mortgage to buy a property in the UK works by borrowing money in a currency other than sterling and where the interest rate follows the foreign country’s rate. Client then make their monthly payment sin sterling which is then converted into the currency of the mortgage. Should the foreign currency appreciate against the pound, it would rise in sterling terms. Thus, there is an exchange rate risk.
At Mayfair Consulting we consider these mortgage very high risk because if your foreign currency mortgage is funding a UK property, your repayments could increase to an extent whereby even selling your own home would not recoup the debt. What is important to consider the currency value.
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.
