Multi currency mortgage

A Multi Currency Mortgage is a foreign currency mortgage where the borrower takes out a home loan in one currency (say) Euros and after a period of time feels he/she would like to switch the loan into another currency.

These mortgages are generally regarded as being less risky than single foreign currency mortgages because as the borrower you have the option of switching if the currency you're borrowing in if it shows signs of appreciating against Sterling. The effect of this appreciation would be to leave you with a larger debt in Sterling terms or higher monthly payments in Sterling terms. Be warned!

See also foreign currency mortgage and mortgages

Last Updated: January 2008 © Moneyextra.com

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