Swiss Franc Mortgage

Financial questions answered by Independent Financial Advisor Mark Nowell

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grebow
Posts: 4
Joined: 20 Sep 2011 21:55

Re: Swiss Franc Mortgage

#46 Post by grebow » 21 Sep 2011 16:50

http://www.lmi-uk.com/images/bms_news.pdf

'Buying abroad is easy, just get the right advice'

Nice quote, but what happens when our mortgage doubles and you make millions in comissions and then close the company you sold to us through.

Can anything be done about this??



Nigel Howarth
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Re: Swiss Franc Mortgage

#47 Post by Nigel Howarth » 21 Sep 2011 17:53

Did you read me earlier reply?

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
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grebow
Posts: 4
Joined: 20 Sep 2011 21:55

Re: Swiss Franc Mortgage

#48 Post by grebow » 21 Sep 2011 18:07

Yes I did, thanks Nigel.

The problems I have had in cyprus linked with the promlems with properies in the UK have left me in a bad financial state anyway so I'm am not too bothered if they chase me because I have nothing.



andy0101
Posts: 33
Joined: 11 Jul 2010 12:02

Re: Swiss Franc Mortgage

#49 Post by andy0101 » 21 Sep 2011 20:20

Hi everyone

Looks like the SNB will lift the band higher to 1.25 from 1.2 against the Euro ,again not much but we are looking for positives in this terrible situation,

Andy



Nigel Howarth
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Re: Swiss Franc Mortgage

#50 Post by Nigel Howarth » 22 Sep 2011 09:46

I hope so Andy.

The S&P downgrading of Italy has put more downward pressure on the Euro.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
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jaguar58
Posts: 3
Joined: 18 Sep 2011 20:37

Re: Swiss Franc Mortgage

#51 Post by jaguar58 » 04 Oct 2011 23:17

graham wrote:Unfortunately we have agreed to buy a property in Tersefanou and we were advised to finance this by way of taking out a Swiss Franc Mortgage by our developer and our bank in Cyprus. Taking this option now looks to be an error of jugement on our part. Exchange rates have had such a severe effect on our payments that any idea we may have had of a good investment has been shattered. Has anybody in a similar situation any suggestions please. As with many people buying in Cyprus we are not getting any support from our lawyer
Hi graham i am in he bad position also i bought when was cyprus pounds and was ok now payments have doubled and no help from the bank or lawyer, and i found out 12 months ago i cannot sell it as the developer took out a mortgage on it aafter me living in it for 3 years with no mortgage on the land talk about corrupt i am ready to give the keys ack to the bank and admit it was a terrible investment



jaguar58
Posts: 3
Joined: 18 Sep 2011 20:37

Re: Swiss Franc Mortgage

#52 Post by jaguar58 » 04 Oct 2011 23:21

maurice wrote:The Times carried an excellent article highlighting the problems of the swiss franc mortgage. Although the piece fully sets out the problems, it doesn't offer any solutions. Having considered the situation over many months, I believe there are 4 possible options and I set them out as follows. We would appreciate any legal opinions that are available:

1. Continue to repay the mortgage (if possible) on the due dates and whilst the mortgage more than doubles
in capital alone, the interest repayments increase annually and the property becomes unsellable, at
least the Bank is kept at bay!

2. Convert the swiss franc mortgage to a euro or pound sterling mortgage (if the Bank will agree) and at
least crystallise the debt so that the situation does not worsen whilst continuing the repayments. This
is an improvement over option 1 but still there is little hope of selling the property.

3. Take legal action to charge the Bank, Solicitors et al with mis-selling and seek redress. This could be
expensive with high legal costs and little hope of success.

4. Stop all payments, disown the property and wait for the Bank to take legal action - possibly 8 years -
and hope that the UK courts will be lenient in enforcing the Cypriot court's judgement.

If only we knew the outcome of option 4, it might well be the most attractive option. Is there a Solicitor out there prepared to put his neck out???


well maurice i have had enough and nobody in cyprus wants to help me well i mean the cypriots who got me in this mess dont want to help so i am going to take my chance and give them the keys wether they like it or not
Maurice Cook



jaguar58
Posts: 3
Joined: 18 Sep 2011 20:37

Re: Swiss Franc Mortgage

#53 Post by jaguar58 » 04 Oct 2011 23:23

grebow wrote:Yes I did, thanks Nigel.

The problems I have had in cyprus linked with the promlems with properies in the UK have left me in a bad financial state anyway so I'm am not too bothered if they chase me because I have nothing.
I am also that way i have nothing left so i will take the consequences and give the keys back next week also



maurice
Posts: 17
Joined: 31 May 2011 09:56

Re: Swiss Franc Mortgage

#54 Post by maurice » 12 Oct 2011 23:16

Further to my last post (4th October) where I set out 4 possible options, we have now decided to take the only option (No. 4 ) and stop all payments to the bank. To continue to repay a mortgage which is now three times the value of the property with no hope of any improvement is financial suicide. We have decided to offer the property back to the bank with an additional cash sum which covers the difference between the value of the property and the original amount of the mortgage. Obviously, the bank have not responded to our offer but have placed the matter within two months into the hands of a debt collector in the UK to recover the missed payments with a threat of county court proceedings in the UK.
I shall now seek to do what I have been searching for from others - to inform other SF mortgagees what happens if you take this drastic action. It has not been done lightly but after considerable soul searching and sleepless nights. Watch out for further information on this site! Maurice



andy0101
Posts: 33
Joined: 11 Jul 2010 12:02

Re: Swiss Franc Mortgage

#55 Post by andy0101 » 13 Oct 2011 18:44

Hi Maurice

It is very sad to hear that you have had to take such drastic action,wishing you good luck and let us know the outcome incase we have to tread this very dark path ourselves.

Andy



jaspers dad
Posts: 10
Joined: 07 Jun 2009 15:41

Re: Swiss Franc Mortgage

#56 Post by jaspers dad » 13 Oct 2011 21:34

Hi Maurice,
Sorry to hear your news. We are close to the same path ourselves but at the moment struggling on, why I am not sure!
Good luck.
Regards Paul



grebow
Posts: 4
Joined: 20 Sep 2011 21:55

Re: Swiss Franc Mortgage

#57 Post by grebow » 28 Nov 2011 17:50

Can I ask if anyone on here purchased their properties via BMS homes in the UK through Hassapis developers in Larnaca and Pyla?

If so I have some very interesting information that might be of use to some of you.



richard2
Posts: 5
Joined: 08 Jan 2012 01:40

Re: Swiss Franc Mortgage

#58 Post by richard2 » 08 Jan 2012 13:29

maurice wrote:Further to my last post (4th October) where I set out 4 possible options, we have now decided to take the only option (No. 4 ) and stop all payments to the bank. To continue to repay a mortgage which is now three times the value of the property with no hope of any improvement is financial suicide. We have decided to offer the property back to the bank with an additional cash sum which covers the difference between the value of the property and the original amount of the mortgage. Obviously, the bank have not responded to our offer but have placed the matter within two months into the hands of a debt collector in the UK to recover the missed payments with a threat of county court proceedings in the UK.
I shall now seek to do what I have been searching for from others - to inform other SF mortgagees what happens if you take this drastic action. It has not been done lightly but after considerable soul searching and sleepless nights. Watch out for further information on this site! Maurice

Hi Maurice how did this work out? Im close to having to hand the keys back myself. I understand that the banks do things differently. Im with Laiki Marfin. WHo are you with?

Regards
Richard



richard2
Posts: 5
Joined: 08 Jan 2012 01:40

Re: Swiss Franc Mortgage

#59 Post by richard2 » 08 Jan 2012 13:37

Nigel Howarth wrote:Hi Maurice

There's an article about the Alpha Bank at Bank starts action against developers and buyers.

I know of one other case and I suspect there may be more.

Regards,
Hi Nigel do you know if there are differences between how the banks tackle a default? My experience from Spain is that they can be very different. Im in a similar position in having subsidised my 2 Pathos apartments for €600 a month for 6 years both my wife and I have used all our savings and the payments are not sustainable. Im with Laiki Marfin and I cant find anything on the web to how they would react to a default. One slight positive is that I dont have that much negative equity (assuming prices dont keep falling).

Your thoughts on a way forward appreciated.



Nigel Howarth
Site Admin
Posts: 2250
Joined: 24 Oct 2007 14:38
Location: Erimi, Limassol, Cyprus
Contact:

Re: Swiss Franc Mortgage

#60 Post by Nigel Howarth » 08 Jan 2012 13:52

Hi Richard,

I don't believe there are any differences here between the ways different banks handle defaulters - but some, I guess, will be more amenable to negotiation than others.

I published an article a couple of years ago on how to go about dealing with this problem - see http://www.news.cyprus-property-buyers. ... /id=001361

Do you have a €uro or Swiss Franc mortgage?

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
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