Cyprus Property Forum for Buyers, Sellers & Investors

Hi Nigel,

I have a quick question please if you don't mind briefly casting your eye over:

I took out a CHF mortgage with Bank of Cyprus starting from around August 2006
and took ownership of the property in July 2007.
I was recommended the CHF mortgage at the time by the sales lady from the property developer company
on the basis that everyone (other buyers) were going for that option and the rate was very beneficial
i.e. at that time it was somewhere around CHF2.45 to GBP1. As we're all aware, the CHF has got
stronger and even more so very recently where we're now looking at a conversion rate
(between CHF and GBP of under 1.4 to 1) - a major difference and as such a large increase
compared to what my monthly mortgage payment used to be.

I am very aware that Alpha Bank customers are approaching their bank on the grounds of mis-selling
(of the mortgage) but don't know where I stand as regards my situation i.e. I was told about the 'good'
CHF mortgage deal at the time by the property developer sales lady and don't recall how much was then discussed with my
bank as to possible currency alternatives for the mortgage?

Could you please just give me your initial view of my situation if you don't mind as it would be very much
appreciated?

My intention is in time (quite soon) to contact Bank of Cyprus to change the mortgage to an EUR one and therefore determine
the cost of doing so (i.e. the cost of transferring it) and ask what the new monthly mortgage payments will be but prior to that I was wondering where I stood with my existing CHF mortgage i.e. would I be in a position to claim any form of compensation?

I would be grateful for a response when you have the relevant time.

Thanks very much in advance for your assistance in this matter.

Kind regards,

Tom

Hi Tom

I expect your 'property developer sales lady' has as much knowledge of foreign currency loans as I have about brain surgery.

You wouldn't get any compensation unless you could prove that the loan was mis-sold. There's a list of law firms and others that will advise you (for a fee) at http://www.cypropsn.org/law-firms . They would need to look at your paperwork before advising you of the best approach - sue the bank or negotiate.

You may be able to negotiate a discount - but again you'd be better off with one of the firms, etc. who are negotiating on behalf of hundreds of buyers.

You may also be able to negotiate a discount if you repay the loan in total.

Did you sign the loan agreement or did you give someone Power of Attorney to act on your behalf?

Regards,

Hi Nigel,

Many thanks for your response as it is much appreciated.

In answer to your question then I signed the loan agreement with the bank.

I'll refer to the link to the law firms that you supplied and take the matter up with them.

Kind regards,

Tom