# Mortgages



## bodget (May 24, 2011)

Friend of mine bought a villa in cyprus 5 years ago on a Swiss franc mortgage.because of exchange rate changes he Joe pays double each month than when he started.according to his statement he owes more now than when he started and can't find out why.any ideas?


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## zin (Oct 28, 2010)

Because he's only been paying interest?


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## dave&carrie (Oct 20, 2010)

Most people with a swiss franc mortgage are in a similar situation.
It is due to the exchange rate.


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## bodget (May 24, 2011)

as far as hes aware hes on a normal repayment mortgage.
his mortgage payments have doubled since he took out the mortgage allowing for the change in interest rate from 2.4 to 1.3 to the pound and his payments chang each month when the rate changes.so he thought he was paying the difference.
hes asked questions to the lender and the broker but cant get a straight answe and isnt sure if hes being ripped off somewhere down the line but doesnt know how to find out answers as everyone who arranged the mortgage are linked together in cyrus.solicitor,bank and agent.


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## dave&carrie (Oct 20, 2010)

If he has a normal repayment mortgage over 10 years he will now owe around half the amount of swiss francs that he borrowed.

BUT, using todays exchange rate it will convert to GBP at more than he borrowed.

If he continues to pay for the term of the mortgage it will be redeemed within the original term, (albeit at vastly increased monthly payments)


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## bodget (May 24, 2011)

dave&carrie said:


> If he has a normal repayment mortgage over 10 years he will now owe around half the amount of swiss francs that he borrowed.
> 
> BUT, using todays exchange rate it will convert to GBP at more than he borrowed.
> 
> If he continues to pay for the term of the mortgage it will be redeemed within the original term, (albeit at vastly increased monthly payments)


his statement says he now owes 50k more than he started with even though his payments have altered each month when the rate has changed,thats why hes confused.:confused2:


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## bobpreston (Jul 11, 2009)

bodget said:


> Friend of mine bought a villa in cyprus 5 years ago on a Swiss franc mortgage.because of exchange rate changes he Joe pays double each month than when he started.according to his statement he owes more now than when he started and can't find out why.



Hi ,my name is bob preston ,i use to be a mortgage broker FSA registered,it was very bad advice to take out a mortgage in another currency ,your mortgage should have been arranged in the same currency as your income ,this was a risky strategy possibly you could complain to whoever arranged this, as your attitude to risk in this case was adventurous,maybe your risk was cautious if that was the case maybe a complaint needs to be made ,also if you have an interest only mortgage this was really risky ,hopefully the recent devalueation of the swiss franc may benefit you i wish you well


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## notts100 (Sep 26, 2011)

*Mortgages problems*

Hello, i find myself in the same situation as many of you, being given the advice to opt for swiss francs mortgage. I now have to have a word with bank to see how to help lower payments as i cannot afford them at the moment! and my mortgage has increased instead of lowered since i started paying...


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