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What is a Foreign Currency Mortgage?
A foreign currency mortgage allows you to borrow in one currency while the property is in a different currency, which is advantageous if you earn in USD, AED, or another primary currency. Foreign currency mortgages are beneficial for UAE residents looking to invest in UK property.
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Foreign Currency Mortgage Specialists
If you earn or hold assets in different currencies, a standard mortgage won't always be suitable. Enness is adept at structuring foreign currency mortgages for international and global investors, as well as UAE residents and expatriates.
Speak to one of our advisors about the best multi-currency financing structure for your property plans.
Islay Robinson
GROUP CEO
Toby Johncox
GROUP MD
Foreign Currency Mortgage FAQs
What Are the Benefits of Borrowing in Foreign Currency?
Foreign currency mortgages usually have a lower interest rate than local currency loans, and can save you over the long term. For high-net-worth borrowers receiving income in USD, GBP, EUR, or AED, this may be beneficial.
Additionally, some lenders will permit you to change the loan currency mid-term to capitalise on changes in rates or market movements. Suppose you have income in a different currency than the country you are purchasing property in (for example, a UAE resident looking to buy property in the UK). In that case, a foreign currency mortgage is the most economical.
Get in TouchWhat Are Foreign Currency Mortgages?
Foreign currency mortgages allow you to borrow in a currency that is related to your income or financial base, and not the currency of the country in which you are purchasing the property. For example, a UAE resident earning in AED or USD can qualify for and utilise a foreign currency borrower to buy property in the UK or Europe.
The repayments are made each month with the amount converted using the exchange at the time of payment. This is a useful financial investment for those with income denominated in a strong, stable currency, and the property is located in a country with a weak currency.
Foreign currency mortgages in the last few years
Foreign currency mortgages are becoming less common due to the EU's Mortgage Credit Directive, which was implemented in 2016. This restricted lenders from offering these products unless they could manage the risks associated with currency fluctuations. Many lenders simply moved out of that space as it added complexity.
However, foreign currency mortgages are still more readily available for high-net-worth individuals, especially those with overseas income and a strong financial profile. At Enness, we work with lenders who understand global clients and can offer good terms to borrowers who are financially strong and have an understanding of FX risk.
Why Enness for Foreign Currency Mortgages?
Many of Enness' clients are foreign investors. Whether you're a foreign investor buying UK property as a non-resident or purchasing a property overseas for a holiday home, investment property, or to add to your portfolio, we have specific experience arranging foreign currency mortgages.
As there are very few lenders operating in this space, it can be challenging to obtain a foreign currency mortgage on your own. Many lenders will only offer foreign currency mortgages through trusted intermediaries, such as Enness, rather than directly to the public.
We strive to understand the niche market that foreign currency mortgages represent and can introduce you to lenders offering competitive solutions tailored to your needs.
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Wherever you're looking to buy, Enness can help you investigate your foreign currency mortgage options. Get in touch to have a discreet chat with one of our expert brokers today.
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