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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 MatchesCurrency speculationCurrency speculationTo buy or sell a currency in anticipation of its appreciation or depreciation respectively, the intent being to make a profit or avoid a loss. See speculation. Virtual currency optionVirtual currency optionA new option contract introduced by the PHLX in 1994 that is settled in US dollars rather than in the underlying currency. These options are also called 3-Ds (dollar-denominated delivery). Currency basketCurrency basketA group of two or more currencies that may be used as a unit of account, or to which another currency may be pegged. Multicurrency clauseMulticurrency clauseSuch a clause on a Euro loan permits the borrower to switch from one currency to another currency on a rollover date. Currency overvaluationCurrency overvaluationApplies mainly to international equities: (1) consideration that a currency is overvalued if private demand for the currency at the going exchange rate is less than total private supply (i.e., central banks are buying up the difference, supporting the value of the currency through foreign exchange intervention); (2) currency value exceeding purchasing power parity. Further SuggestionsCurrency factorCommon currency Currency risk Reserve currency Currency call option Currency reserves Artificial currency Under-valued currency Currency union Currency in circulation Net currency exposure European Currency Unit Foreign currency translation Strong Currency Currency no longer issued Eurocurrency deposit Optimal currency area Reserve currency Currency bloc Canonical model of currency crises Composite currency Foreign currency futures contract currency Currency depreciation Currency put option |
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