US Dollar Mortgages

Demand for foreign currency mortgages against UK property is soaring upwards, The new strength of the pound against the dollar has led to a tide of interest from borrowers looking to take out US dollar mortgages against their UK homes even in these turbulent U.S prime times.

Having a mortgage in a falling currency can help cut down outstanding debt by thousands of pounds in just a few months, but it is a speculative strategy. Someone who had converted a million dollar mortgage into dollars on January 7, when there were $1.92 to the pound, would have seen the rate of their debt fall to about £915,000 if he or she had changed it back when the exchange rate was at a 26-year high of $2.11 earlier this month.

Many private banks and agents offer foreign currency mortgages f where your repayments cover only the interest and the aim is for foreign-exchange movements to cut the value of your debt.

If someone had converted a £1m loan into dollars at a rate of $2.11, the value of the debt in pound terms would have increased by £34,000 in the space of a week.

Even though multi-currency loans are less risky than those restricted to a single currency, they are still not for the fainthearted as you are depending on the judgment of a mulit currency mortgage professional.