Dual- and Multi- Currency mortgages

A multi-currency mortgage is a mortgage whereby instead of borrowing in sterling, as is standard practice, the borrower takes out a mortgage in a different currency such as U.S. dollars, Swiss francs and euros. These mortgages were sold on the basis that;

Potential to reduce debt – if the mortgage is taken out in a currency that weakens against the pound, and,

Potential Interest rate savings – can be made if you borrow in a currency that has lower interest rates.

These products are extremely risky as they expose the borrower to long term currency risks.

Unfortunately, such products were indeed still sold to unsuitable borrowers, and in many of these cases the repayments have spiralled out of control due to their exposure to currency fluctuations. The banks failed to explain the inherent risks associated with the currency markets. In our experience, the currencies that have caused such problems are the euro, the Swiss franc, and the Japanese yen.

AHV can analyse the product and its suitability, and then quantify any redress that is due.