Thursday, September 01, 2011

Homeowners hit by soaring Swiss franc...

Thousands of British homeowners who were advised to out take foreign currency mortgages have been hit by the strong appreciation of the Swiss franc – and now owe far more on their loans than they did a few years ago.

Swiss franc loans were sold to homeowners before the global downturn as a way to take advantage of low interest rates in Switzerland which, at the time, made repayments substantially cheaper than those on UK mortgages.

But with the Swiss franc driven to record highs as investors have sought a haven from the eurozone and US debt crises, borrowers have seen their mortgage payments soar and the value of their debts increase dramatically.

Swiss franc loans were sold by well known British banks to UK expats overseas, and thousands of Britons who bought property in Cyprus between 2006 and 2009 were sold these loans by Cypriot banks. More... 

See also: Swiss franc hits Hungary's homeowners...

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