Multi-Currency Mortgages
 A number of well-known UK banks or Private Banks offer multi-currency mortgages secured against your foreign or UK property and in the currency of your choice that can be constantly “switched”. One advantage of financing your overseas (or UK) purchase with a well-known UK bank or Private Bank is of course that you are dealing with an organisation you know and can trust, and can be confident that all the literature will be in a language you can understand.
Our managed multi-currency mortgage Partner then enables borrowers to benefit from the advantages of this type of finance without the worry of having to study currency exchange fluctuations and making the decisions alone.
Our Partner in this field draws on the collective experience of its Investment Committee to make currency trading decisions for you. This committee comprises a group of highly respected analysts and strategists from a wide range of financial and economic backgrounds, who advise governments, central banks and some of the world’s largest institutions. You can now make the most of their experience and knowledge in order to manage your currency mortgage and secure you the advantages of this type of finance.
To make an enquiry for this type of finance and be contacted by one of our Partner’s consultants, please click here.
Do you require a non-managed or managed multi-currency mortgage?
For some borrowers a currency switching option or a “multi-currency mortgage” whereby he or she has the facility to finance in one currency today and retain an option to convert to another currency at a later date is the perfect financial solution as they often relocate to countries with different currencies and receive income in varying currencies. This type of borrower only intends to “swap” the currency of their mortgage a couple of times during its term for sake of ease of payment and will therefore not necessarily require the assistance of a company offering to “manage” the currency switching.
If you are this type of borrower that does not necessarily require assistance in managing your multi-currency mortgage you can request a call back from one of our advisors please click here.
Other borrowers do not envisage changing the currency of their income in the future but simply wish to use a multi-currency mortgage in order to reduce their debt and make interest rate savings. Managed multi-currency mortgages enable borrowers to benefit from expert knowledge and experience on reducing debt by borrowing in currencies which fall in value against the sterling at the same time as reducing the cost of servicing the debt by borrowing in currencies which have a lower interest rate than sterling. In this case, a borrower would normally require the assistance of a company that could manage the mortgage for them. You can make an enquiry and be contacted by our Partner for this type of managed multi-currency mortgage please click here.
Do you fit the criteria for a Managed Multi-Currency Mortgage?
With a Managed Multi-Currency Mortgage through our carefully selected provider you are able to borrow money against your overseas or UK property in a choice of up to 10 major currencies on completed property world wide. There is however subject to certain criteria which MUST be met.
Lending Criteria which must be met for Managed Multi-Currency Mortgages:
- Minimum principle earner's income £100,000 (total net worth also taken into account)
- Minimum loan size of £250,000 or equivalent
- Loan size to property value limited to 65%
- Fully constructed property (no off-plan property)
- Residential, Buy-to-lets & Commercial
All loans are interest only
The lending criteria for non-managed multi-currency mortgages varies from that required for managed multi-currency mortgages and tends to be less strict. For more information on the criteria for non-managed multi-currency mortgages please click here.
What to watch out for?
Most multi-currency mortgages will allow two free currency switches per calendar year so be aware that if you change currencies more than this there will be an administrative charge to cover.
The loan to value offered on a mortgage that allows currency switches is normally lower than a mortgage that remains in one currency for the entire term. For Managed Multi-Currency Mortgages the maximum loan to value is normally 65% but for Non Managed Multi-Currency Mortgages this can increase to 75% in some cases.
Care also needs to be exercised when switching currency as significant movements in exchange rates can occur very quickly and could of course change for better or for worse.
You will find that our Partner offering Managed Multi-Currency Mortgages will only allow you to apply once they are happy that you would definitely be able to deal with any adverse changes in your debt due to currency exchange movements for the worse.
To speak with a member of the Assetz Finance team
please call 0845 400 8000 |
