A multi-currency mortgage is an investment product in which the debt can be periodically switched between different major currencies.
Multi national
Multi currency
eg: USD, Sterling, Euros, and Japanese Yen. This is different from a foreign currency mortgage in which the debt is in a foreign currency for the entire life of the mortgage. Multi-currency mortgages are more flexible than foreign currency mortgages in that they can be switched between currencies to manage foreign exchange risk. This provides a great opportunity to overseas and regional property investors as it may also be used in your country of residence. Borrowing in a foreign currency that has a lower interest rate than Sterling or US Dollars is an attractive proposition and offers the opportunity of sizeable reductions in monthly payments. Yen rates from 1.3% IFGroup offers an extremely successful overseas and investment property purchase credit facility. It is both convenient and highly flexible, as this service is geared towards investors globally purchasing property in Great Britain, USA, Spain, France, Italy, Portugal, New Zealand and selected locations in Australia and Canada , as well as in Hong Kong and Singapore.
The multi-currency mortgage offers:
Competitive interest rates!!
Multi-currency loan facilities
∙ Available in nine currencies allowing you to borrow in either the currency of your income, assets, or other to obtain low interest rates.
Free currency switching option
∙ Combined with multi-currency loan facilities and subject to status and conditions, we allow currency switching between apporved currencies.
Free pre-approved financing
∙ If you intend to buy overseas property, take advantage of our pre-approved financing. No fee or comitment required.
No penalty for rental / buy-to-let properties
No penalty for early payments
Up to 100% financing available (subject to credit status and additional security)
Flexible repayment methods
You can choose from a wide range of repayment methods to suit your personal needs:
Principal plus interest instalments
Interest only plus savings plan
Interest only plus lump sum investment or deposits
Interest only (normal LTV reduced by 5%). Reviewed after 5 years.
Interest only for 5 years, followed by automatic conversion to instalments of principal and interest.
For loans against property in Great Britain -
For loans in GBP, 1% p.a. over the prevailing UK Base Rate;
For loans in other currencies,1% over Cost of Funds rate for the relevant currency*
For loans against property in Australia and New Zealand
1% p.a. over our Cost of Funds rate for the relevant currency*
For loans against property in USA, France and Canada
1.5% p.a. over our Cost of Funds rate of the relevant currency*
For loans against property in Spain*
1.5% p.a. over the prevailing Euribor* rate for Euro or LIBOR rate for the relevant currency
* Rates are normally floating, based on a 3-month period
Minimum Loan
$ 75,000 – or currency equivalent
Loan Term
Up to 30 years term or up to 70 years of age, whichever is earlier.
Financing
Normally maximum 80% of purchase price or valuation without currency switching. 5% lower with currency switching options.
Arrangement fee
Calculated as a percentage of the loan amount and payable upon acceptance of the formal offer letter and is non-fundable. Property in Great Britain, France, Spain, Australia, Canada and New Zealand: 0.5% Property in USA: 1%
Commitment fee (US property only)
0.3% of the loan amount upon acceptance of our formal offer letter and is non-refundable.
Legal fees
For client's account. For property in Great Britain, 20% discount on legal fees has been negotiated by the Bank with nominated solicitors.
Valuation fee
For client's account. For property in Great Britain, 20% discount on valuation fee will be available.
Stamp duties & communication charges
For client's account.
Corporate/ trust borrower handling fee
0.25% of the loan amount for clients who borrow via a company or trust structure, payable upon acceptance of our formal offer letter and is non-refundable.
Currency switching
When currency options are offered, two free switches per calendar year. USD150 per switch thereafter.
Security
First legal charge or mortgage over the property.
Leasehold properties
Selected areas of Central London - minimum 30 years left to run after loan repayment date. Elsewhere - minimum 50 years left to run after repayment date.
Letting/Rental
No additional charges or increase in interest rate.
Type of loan
Demand loan subject to annual review.
Repayment
Quarterly in arrears.
Early Repayment
No penalties for prepayment (except for fixed interest rate loans) and early repayment should normally coincide with the interest rollover date.
Life Assurance
Mortgage protection life cover may be required.
Building insurance
For client's account.
Whilst it is very tempting to look only at the cash flow benefits of low interest rate currencies, it should not be the only consideration when assessing the suitability of a foreign currency mortgage facility. The effects of fluctuation in exchange rates should also be considered as these can directly affect the size of a borrowers outstanding loan. If the chosen currency weakens against the value of sterling, the value of the mortgage debt will be reduced. Equally, if the currency strengthens, then the sterling equivalent of the mortgage will increase.
If you would like further details on multi-currency mortgages or simply want to ask us a quick question, please CLICK HERE and a qualified member of staff at International Financing Consultants will be happy to help.
Mortgages 
