Foreign Currency Mortgages - the advantages and disadvantages
The vast majority of mortgage borrowers get their mortgage from
a mainstream UK lender, paying in pounds sterling and following
the Bank of England base interest rate. But there are
alternatives...
The UK's domestic interest rates are quite low, especially in
comparison with recent years, however interest rates are in fact
a lot lower in the Eurozone, Switzerland, America and Japan. You
have the option of borrowing the money you need for your house
purchase in Euros, US dollars, Swiss Francs or Yen, securing the
debt on your house and taking advantage of the lower interest
rates.
This illustration of 3 month money market interest rates
demonstrate the differences between UK interest rates and those
around the world:
Japanese Yen 0.12% Switzerland 1.03% Eurozone 2.46% US $
4.48% Sterling