07: Foreign currency mortgages

This can make sense if your salary is paid in a foreign currency. From time to time, foreign currency mortgages look attractive because they offer a lower interest rate than UK mortgages. However, not only is the monthly payment made in the currency concerned, but so too is the mortgage capital when the loan is eventually repaid. If sterling has fallen relative to the currency, it will cost you more pounds to repay the mortgage. Consequently, foreign currency mortgages are high risk, unless you have significant income or capital in that currency.Last Updated