Swiss Franc Mortgages
Swiss Franc mortgages were commonplace in Cyprus before the crash. But the financial risk to borrowers from these mortgages was never explained.
Now, thousands of borrowers find themselves trapped by these mortgages that seem to be growing, even as they make payments.
Find out your options if you have a problematic Swiss Franc Mortgage.
Amid the pre-2008 property boom, many people took loans from Cypriot Banks in the form of Swiss Franc (CHF) mortgages. Most of these mortgages were used to purchase off-plan properties at inflated prices. Whilst they were not a problem at the time, they are now a serious headache for anyone who took them. Issues such as negative equity or mortgage arrears are then further complicated by the issues with exchange rates and difficult Cypriot Banks.
What is the problem with Swiss Franc Mortgages?
As mentioned above, these mortgages were not an issue when banks were giving them out between 2006-2008, or at least that is what lenders said.
Fast-forward to the present, and there are several key issues with these mortgages, including:
Swiss Franc Exchange Rate
Originally, interest rates in most European countries were sky-high. Lenders sold these mortgages as low-interest alternatives to mortgages in Euros. However, the dangers were not outlined to prospective borrowers.
Over time, most currencies have depreciated, whereas the Swiss Franc has increased in value. This increased gap means these mortgages may get larger, even with repayments. It also means that the final amount owed is subject to the current exchange rate. If the Swiss Franc increases in value, so will your mortgage.
Mis-selling and misrepresentation
Borrowers largely used these mortgages to purchase off-plan properties in developments that were far from finished. In return, the Banks released money to allow developers to finish the properties. The problem came when the Cypriot economy collapsed. This has left many people with properties in unfinished and abandoned resorts that never materialised.
This makes it extremely difficult to sell a property, even if it is at a greatly reduced price. Many people in this situation use the phrase “a mortgage prisoner – trapped.”
“How to Get Out of a Swiss Franc Cypriot Mortgage?”
This is by far the most common question we are asked. Unfortunately, there is no simple answer. Mixed currencies, a stagnant economy, difficult lenders and issues with title deeds all combine to make Swiss Franc issues particularly difficult to settle.
Although you may have been stuck with this burden for decades, all is not lost, and there are solutions available.
Can you Stop Paying Your Cypriot Mortgage?
Despite the likelihood of your mortgage being mis-sold, you cannot stop paying your lender. If you do, you will face action from your lender in Cyprus and in your home country.
In this case, the process is relatively similar across the board. Your lender will first issue a Writ. This is the first step in the process, the next step is a Judgement against you in your home country.
A Judgement opens the door to your lender placing a charge on your property, this can lead to repossession.
Cypriot banks are notoriously slow to act. So, if you have stopped paying your mortgage, it could be years or decades before you hear from your lender. The first you may know of any action is a letter received through the door.
How can we help?
Over the years, EU Property Solutions have developed relationships with local Banks across Cyprus, and they respect our work. Our approach to Banks holding Swiss Franc (CHF) mortgages, coupled with our experienced legal teams, sees us achieve excellent outcomes for our clients who face these dilemmas.
We refer to Swiss Franc Mortgages as ‘the Anti-Christ’. A bit dramatic, perhaps, but if you are stuck with such a mortgage, you will know the catastrophic effect these can have on your financial well-being.
We fully appreciate that you have been wronged, and to support us in establishing the trust needed here, we have real video and telephone testimonials from past satisfied clients.
It is free to talk to us, so please contact us now.
Alternatively, talk to us via our Live Chat or submit a Request a Call Back Form. One of our team will be in touch as soon as possible.
Will A Swiss Franc Mortgage Resolve Itself?
In short, no. The Swiss Franc is a very strong currency, so even if it does decrease in value (which is unlikely), your mortgage will not decrease by a huge amount. If your property has already entered negative equity, it is unlikely to return to positive equity in the future. In fact, the longer you wait, the worse these issues will get.
Was I Mis-sold My Swiss Franc Mortgage?
Almost all Swiss Franc mortgages were mis-sold. They were offered as a low-interest alternative to a traditional mortgage. What was never explained was the consequences of taking one of these mortgages. Unfortunately, the ‘I was mis-sold’ argument will fall on deaf ears and makes no difference to how lenders pursue debts.
Why Should I Trust EU Property Solutions?
For over a decade, we have been helping people in exactly the same situation you find yourself in. We understand that you have probably been lied to by the bank, developers, and estate agents. If our amazing results don’t say enough for themselves, check out some of our testimonials or call our office and speak to a team member. You can even chat with previous clients of ours over the phone!
Why not get in contact?
As we said, the best way to hear how we can help is to contact us today.
All of our initial calls are confidential and completely obligation-free. So, if you don’t like what you hear, you don’t have to go any further.
If you want a solution to your property debt issue, click the button to talk to us.