UNDOUBTEDLY……..Can I get compensation for that? – absolutely no chance!
That is our stark assessment we believe of the situation when trying to resolve a Swiss Franc mortgage issue. Why do we at EU Property Solutions say no chance:
That is why, with our experience across many states, we see the possibility of trying to obtain any recompense of mis-selling….. is nigh on zero.
To form this opinion, we take an overall perspective, and we need to look at the fundamentals that led to the current position. We find ourselves some 13-14 years after the Financial Crash of 2008/2009.
Swiss mortgages were sold on the basis that the Swiss Franc was a stable currency from 2004 to 2008. It was – ‘as secure as gold.’ In many ways that is true, but the failing of this product was to ignore huge currency fluctuations.
Whilst the Swiss Franc is a stable currency, it has also been too strong versus other mainstream currencies such as the Euro, Sterling, and the Dollar.
By today’s standards, in terms of financial services the full risk of such mortgages would have been discussed, and a disclaimer/covenant would need to be signed confirming that you fully understood the risks.
As we know the Banks at that time were incredibly ‘frothy’ and there was too much loose/easy money in the world for all to access. From that point however when the Financial Crash came about, the world was not ready for the huge fallout.
Economies were completely flattened across the world to such an extent that the ramifications are still felt today, thus the existence of EU Property Solutions.
The one currency survived this Crash, and thus the problem we face with Swiss Franc mortgages, is indeed the Swiss Franc itself. Most economies if at best ‘flatlined’ or dropped but not the Swiss economy.
This appreciating value of the Swiss Franc saw loans and mortgages increase in terms of balances due and this coupled with the falling value of Cypriot holiday homes created a ‘perfect storm’ shown by the illustration below.
In round figure terms, the Swiss Franc appreciated from SwFr 2.25 to the GBP£ in late 2008, to roughly today’s rate of SwFr 1.25 to the GBP£.
This appreciation then manifested itself by increasing the loan amount due – hugely. The graphic above shows the effect of that rise coupled with falling property values, creating the void known as Negative Equity.
Negative equity is the shortfall that exists between a property value which is less than the amount owed.
Since 2008 the Banks have, to all intents and purposes, ignored all the cries for help and claims for mis-selling, but some have felt ‘pangs of guilt’ and transferred some of these Swiss Franc mortgages to Euro mortgages. This was to suit their own agenda. Yes, there was some recompense for the lenders trapped with the Swiss Franc mortgages but still many are materially in negative equity.
Many people carry anger, guilt, and some carry shame because of one poor decision. With this backdrop, unscrupulous legal entities have entered the market and have created Class Legal actions that have been funded by tens of thousands of £’s of legal fees. To our mind these legal entities have preyed on victims and are as bad as the Banks.
Please look at the tab on our website which sets out how we at EU Property Solutions attack the problem and burden of negative equity in Cypriot holiday homes funded by Swiss Franc mortgages, and give us a call to discuss your individual circumstances.
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We are a UK based firm with legal teams in Spain and Cyprus who understand the market and Bank practices as they stand. We remove the language barrier and utilise law, Bank lending flaws and current client circumstances to negotiate the best feasible outcome for all our clients.
EU Property Solutions was formed following the success of our associate firm Bell & Company. An FCA registered firm of Debt Strategists, Bell & Company assist individuals in difficulty in the UK and Republic of Ireland with Personal and Business-related debt issues.
We have an excellent track record of success. Our success stories and testimonials come straight from our clients & highlight the high quality of our works and outcomes. We have individuals willing to speak to prospective clients on the telephone to offer their story and experience.
Our obligation is always to our client and that is where our strength lies. Debt is highly stressful and emotional. We deal with debt day in day out and employing an intermediary removes emotion from the situation allowing clear strategy to be implemented to get the best outcome for our clients. Understanding a firm of professionals is acting on your behalf can remove stress and focus the mind to a positive end goal.