Foreign Currency Mortgage

is anybody having problems with their foreign currency mortgage? We were misled when taking our mortgage out a year ago and are now along with many others in a very bad position because of our loan to value situation.


I would be eager to hear of any one else in a similar position.

Hi thanks for your reply, we are wondering what grounds we might be able to make a complaint about. It was sold as a win win mortgage, we along with many others were not given the full picture of the loan to value issues.

Kellie.i


I think it is going to come down to to all the wording on the documents you signed, it may well be possible that you only got to see the full legal docs after committing, so it would have been upto you to have asked what risk there was beforehand, the person selling it may not have wanted to highlight the risks involved unless asked. If you asked and were not told, then this is missellng and you need to contact the body regulating this mortgage product.


To be honest, almost any mortgage will have similar requirements that you may be asked to put in more capital if the property value plummets. Often they don't push you on it if because in time properties may recover but with additional risk introduced due to different currencies, they are are quick to ask for this extra money. I too was approached about these mortages and not told anything about this.


Did you also sign up for savings plan also to pay this off. The usual scam on those mortagages is that you go interest only and then take a separate savings plan to build the capital to pay it off. If so then yes it is a win win situation, but only for the person who sells these double packages to you.


For every loser there is a winner, I considered taking out a GBP mortgage 1 year ago to pay for my property here, if I had I would have been on easy street by just switching back to a HKD one now and wiping 25% off the mortage.


Good Luck and I hope it all sorts it's self out

Kellie.i - did you get your loan through a bank or broker? The brokers are not too skilled in Fex trading and this has left so many people in your boat.

Have you managed to negotiate with the bank? They are not being too reasonable from what I hear and there are just so many people in the same situation, I hope you can get some joy out of it.

Gotta offset the 25% upside against the fact that the UK property market is in freefall.....