Can I have some information on multi-currency mortgages?

Posted on 7 September 2007

I am enquiring about a multi currency mortgage of £420,000 on £525,000 property. I just want some information at this stage. Thanks, Ian.


A multi-currency mortgage is one that is initially issued in Sterling, but which you can change the currency of should you wish to do so.  They are agreed on a bespoke basis but typically speaking you should expect a rate of around 1.25 over LIBOR and an arrangement fee of between 0.5% and 1% of the loan.  I believe the maximum loan is normally around 70% LTV so for a property of £525,000 that would be £367,500.

They are only suitable for someone with a good knowledge of markets and exchange rates, due to the currency change risk.

A multi-currency mortgage can be arranged through our sister company John Charcol if you call 0800 718191 (typical cost for comparison is 8.1% APR).  Any changes to the currency regrettably cannot be advised upon, although the lender that we refer you to can assist you with information.

Regards,

Katie

Category: Special circumstances

 

Answers provided in response to Ask Bea are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of Charcol Limited. All comments are made in good faith, and neither Charcol Limited nor Bea will accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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