Head of Content
Mortgage Advisor & Director
What is a foreign currency mortgage?
There are two main types of foreign currency mortgage:
- a mortgage that is taken out on an overseas property
- A foreign currency mortgage that is taken out on a UK property.
Foreign currency mortgages are a specialist mortgage product and as such we would recommend using an experienced broker to find you the best deal. At Teito, we have helped many people like you to find their perfect foreign currency mortgage. To get started, complete our straightforward online form today and we promise to make your mortgage journey stress-free!
Carry on reading to learn more about foreign currency mortgages!
How do foreign currency mortgages work?
The lender grants you a mortgage in a foreign currency. While the mortgage itself is converted to sterling to allow you to buy the property, the value of the debt and the interest charged remains in the foreign currency. The monthly repayments are converted into sterling at the foreign exchange rate and paid as normal.
The mortgage itself is then paid off by making monthly payments, as usual, in pounds sterling, which is converted into the chosen currency on the foreign exchange.
What are the benefits of a foreign currency mortgage?
The overriding benefit with foreign currency mortgages is that they can offer a lower interest rate than is available in the UK, which can save thousands of pounds over the course of the mortgage.
Can I get a foreign currency mortgage?
Foreign currency mortgages are a relatively niche product so you may find that they are not available from high street lenders.
Some lenders will expect you to be paid in the same currency in which you are looking to get a mortgage or have expertise with currency markets. This is because there is an inherent risk in currency exchange, meaning that your mortgage value in sterling may actually increase if the exchange rate changes significantly.
Foreign exchange mortgages are typically favoured by high net worth clients.
How can I get a foreign currency mortgage?
As foreign currency mortgages are a specialist mortgage product, we would recommend using an experienced broker.
Our team of advisors work with hundreds of lenders to find you the perfect mortgage. Get started now, and we promise to make getting your foreign currency mortgage as straightforward and stress-free as possible!
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
