# Banking???



## midland3 (Jun 13, 2009)

Hi all
We bought an apartment in pafos last year and wondered if anyone knew much about the banks in cyprus? We're with Hellenic Bank at the moment and they've just doubled their interest rates. Is this happening with all banks over there or just these? Wondered what the general consensus was with banking institutions there.


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## Veronica (Apr 5, 2008)

midland3 said:


> Hi all
> We bought an apartment in pafos last year and wondered if anyone knew much about the banks in cyprus? We're with Hellenic Bank at the moment and they've just doubled their interest rates. Is this happening with all banks over there or just these? Wondered what the general consensus was with banking institutions there.


All banks here have put their interest rates up.
You could look into changing banks and trying the Bank of Greece as they are now offering Sterling mortgages if the buyers are living in the Uk and earning sterling.
The rates are much lower and you don't feel the effects of the exchange rate fluctuations.

Regards Veronica


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## midland3 (Jun 13, 2009)

*Thanks*



Veronica said:


> All banks here have put thier interest rates up.
> You could look into changing banks and trying the Bank of Greece as they are now offering Sterling mortgages if the buyers are living in the Uk andf earning sterling.
> The rates are mcuh lower and you don't feel the effects of the exchange rate fluctuations.
> 
> Regards Veronica


Thanks Veronica. Will look into that.


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## Chris & Andrea (Feb 15, 2008)

*Hellenic Bank*

Hi Midland3 ~ yes we're with Hellenic Bank and recently received no doubt the same letter as yourself. They did explain that they had for some time been holding out against the increases to borrowers, but in order to protect investments, to use their phrase, had been forced to increase the lending rate by 2% on all foreign currency loans linked to the LIBOR interest rates. This effectively increased ours from 1.65% to 3.65%. The only saving grace if at all is that our mortgage is in Swiss Francs.
Whilst yes there is always the option to look elsewhere I think with all the stress of finding a bank willing to lend in the first place you can't always guarantee that another bank will lend the money?
Regards,
Chris




midland3 said:


> Hi all
> We bought an apartment in pafos last year and wondered if anyone knew much about the banks in cyprus? We're with Hellenic Bank at the moment and they've just doubled their interest rates. Is this happening with all banks over there or just these? Wondered what the general consensus was with banking institutions there.


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## midland3 (Jun 13, 2009)

Chris & Andrea said:


> Hi Midland3 ~ yes we're with Hellenic Bank and recently received no doubt the same letter as yourself. They did explain that they had for some time been holding out against the increases to borrowers, but in order to protect investments, to use their phrase, had been forced to increase the lending rate by 2% on all foreign currency loans linked to the LIBOR interest rates. This effectively increased ours from 1.65% to 3.65%. The only saving grace if at all is that our mortgage is in Swiss Francs.
> Whilst yes there is always the option to look elsewhere I think with all the stress of finding a bank willing to lend in the first place you can't always guarantee that another bank will lend the money?
> Regards,
> Chris


Hi Chris and Andrea
I know what you mean. Ours is Swiss as well. I am going to make enquiries. I'll let you know if I find anything interesting. 
Lx


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## theresoon (Apr 11, 2008)

maybe they'll let you switch currencies and make it a Euro mortgage. Why was it made in Swiss Franks - if I may ask?


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## midland3 (Jun 13, 2009)

They were just the best deals on the market at the time. Not so sure now though!!


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## theresoon (Apr 11, 2008)

there is always that risk and that is why this, loans in a third currency, shouldn't be recommended. I would ask if it would be possible to convert it to Euro or Sterling and then do your calculations to see if it would be worth it. I am not sure you can switch a mortgage to another bank that easily here as the second bank will want the title before anything is done and the first bank will not release the title till the end. I hear the gov is working on this. So I would check with Hellenic about this.


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## midland3 (Jun 13, 2009)

theresoon said:


> there is always that risk and that is why this, loans in a third currency, shouldn't be recommended. I would ask if it would be possible to convert it to Euro or Sterling and then do your calculations to see if it would be worth it. I am not sure you can switch a mortgage to another bank that easily here as the second bank will want the title before anything is done and the first bank will not release the title till the end. I hear the gov is working on this. So I would check with Hellenic about this.


We will be looking into it. We were actually recommended the swiss franc mortgage by the bank manager. He seemed to think swiss franc mortgages were the best deal going. We might end up having to stick with it, but we'll do our sums and see. Thanks for your input.


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## mollymore (Jun 24, 2009)

midland3 said:


> We will be looking into it. We were actually recommended the swiss franc mortgage by the bank manager. He seemed to think swiss franc mortgages were the best deal going. We might end up having to stick with it, but we'll do our sums and see. Thanks for your input.


We were also recommended by our bank manager to mortgage in swiss francs

do you think we would have been better of with euros


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## midland3 (Jun 13, 2009)

mollymore said:


> We were also recommended by our bank manager to mortgage in swiss francs
> 
> do you think we would have been better of with euros


After a few enquires with different companies, I've been told that the mortgage we're on is a great deal and we shouldnt change it to Euros. Not yet anyway. I'll keep looking around but for the moment we're staying where we are. The interest rates with the swiss franc mortage are fantastic compared to everywhere else by the looks of it, even after doubling the interest rate!


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## Veronica (Apr 5, 2008)

midland3 said:


> After a few enquires with different companies, I've been told that the mortgage we're on is a great deal and we shouldnt change it to Euros. Not yet anyway. I'll keep looking around but for the moment we're staying where we are. The interest rates with the swiss franc mortage are fantastic compared to everywhere else by the looks of it, even after doubling the interest rate!


Swiss Franc mortgages have historically always been at lower rates than others which is why most of the Banks in Cyprus were offering them to people. I beleive that they are no longer as widely available but if you have one its best to stick with it, at least for the time being. To swap from one to another is costly and what you might save on a monthly basis probably wont be worth the change.

Veronica


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## dave&carrie (Oct 20, 2010)

mollymore said:


> We were also recommended by our bank manager to mortgage in swiss francs
> 
> do you think we would have been better of with euros


We also have a swiss Franc mortgage. Has anybody switched to Euro or indeed switched mortgage provider?


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## philly (Feb 5, 2010)

Does this mean that your mortagage payments have almost doubled !!!!!!


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