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EU Property Solutions- Experts in all Spanish property issues

EU Property Solutions offer professional assistance and advice in all areas of European property in particular, Spain. We can help provide strategies and solutions to solve problematic property issues, negotiate with lenders on debts, help reclaim lost deposits on unfinished developments and help with repossessions and mortgage arrears across Europe. We have offices in London, Belfast and Spain.

Swiss Franc Mortgages
01 February 2017 @ 14:45

Swiss Franc Mortgage contracts which involved thousands of borrowers are in default, across Cyprus and other Balkan and European Countries.

Back in April 2016 we released a blog on the issue regarding Swiss Franc Mortgages, and as we predicted the situation has worsened. Many borrowers still continue to struggle to repay their loans, even with record low interest rates.

The Once & Past Dream

The idea of owning a property in the sun was a dream for thousands across the UK, dreaming of a place to settle, and retire, a retreat for the grandchildren to visit.

For many, they would have borrowed and mortgaged the property usually through a Euro product, but as we know pre-2008 lending processes were “loose” and the idea of a Swiss Franc Mortgage appealed to many, not realising the predicament they would find themselves a few years down the line.

No one could have foreseen the events of 2008 and thus many borrowers have now become victims of circumstance.

Swiss Franc Mortgage Products

These Swiss Franc Mortgage Products were sold on the basis on the exchange rate at that time which included a variable interest rate. Since then most clients which have contacted us are dealing with 3 major problems:

  1. Rise in the interest rate on their mortgage, not highlighted at the time.
  2. Exchange Rate Depreciation – £ to SwFr 40% from 2008 to date.
  3. The Property is in negative equity anyway i.e. a mortgage debt greater than market valuation.

Movement on Swiss Franc Mortgage Agreements

Early last year Cypriot Banks became more aggressive with those parties struggling, serving Writs  on borrowers defaulting on their loan agreements . This often involved appointing UK Debt Collection Agents and Solicitors which exposed people for the first time at home in the UK…… Assets and incomes then become at risk.

Many overseas borrowers with Swiss Franc Mortgages are struggling to find a route out of this issue.

Thankfully, there are now options for borrowers in this situation. There is the on-going legal battles in the Supreme Court but the key here is to do something now and take control.

 



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