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Foreign currency mortgage |
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Foreign currency mortgageIt is possible to get a mortgage for your home in the UK in a mortgage denominated in a foreign currency. It sometimes gives you the opportunity to borrow money at a lower rate of interest than is possible in the UK. You do this by choosing a currency whose country has lower interest rates than we have here. Lower interest rates should mean lower repayments of both capital and interest or a shorter mortgage term. The mortgage does not have to be in any single currency. There are lenders who will allow you to spread your mortgage across a range of different currencies. This could be seen as spreading the riskForeign currency mortgage Similar MatchesEurocurrencyEurocurrencyA currency which is deposited in banks outside its country of origin. For example the eurodollar, eurodeutschmark and eurosterling. Currency areaCurrency areaA group of countries that share a common currency. Originally defined by Mundell (1961) as a group that have fixed exchange rates among their national currencies. Currency risk sharingCurrency risk sharingAn agreement by the parties to a transaction to share the currency risk associated with the transaction. The arrangement involves a customized hedge contract embedded in the underlying transaction. Soft currencySoft currencyA money of a country that is expected to drop in value relative to other currencies. Canonical model of currency crisesCanonical model of currency crisesThis term has been used to refer to the model that Krugman (1979) presented of a currency crisis that results when domestic policy is pursued in a manner inconsistent with a pegged exchange rate. Further SuggestionsCurrencyHard currency currency conversion Composite currency currency loan Moscow Interbank Currency Exchange (MICEX) Currency in circulation Currency revaluation Currency put option Optimal currency area Base currency Under-valued currency Currency reallignment Currency devaluation Asian Currency Units (ACU) Currency selection Currency future Over-valued currency currency swap Foreign currency option Currency board Currency risk Currency basket Multicurrency clause Currency depreciation |
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