Creating an asset out of a liability

Instead of lending in Sterling, the bank will advance your money in another mainstream currency. The cost of the debt is then converted to Sterling, and you use this to buy your property. The debt is paid off in the foreign currency but you make appropriate monthly payments in Sterling, which are then converted into the currency your mortgage is in.

How do I know when to switch between currencies?

Don't worry,we don't expect you to be an expert overnight!, or take pot luck!, We work with various currency mortgage managers. A manager moves your mortgage in and out of various currencies when he judges that it is in your interest to do so. For example, if your mortgage is in Euro but this strengthens against Sterling, the manager will move your mortgage into a relatively weaker currency, such as US Dollars, for instance.

What are the three main benefits of a managed multi-currency mortgage

• Interest Rate Savings - This is achieved through borrowing in one or more low-interest rate currencies.
• Reduction in the capital value of the debt - This is achieved by switching your mortgage between foreign currencies which weaken against sterling
• Tax efficiency.For private individuals borrowing against their main residence the benefits of the programme are tax free.(You should get confirmation of your tax position from your tax adviser.)

Foreign currency mortgages are not for everyone but aimed at our more adventurous clients who are well aware of the risks involved. You should always be aware that