Cyprus Property Forum for Buyers, Sellers & Investors

Hi Nigel,

I trust your keeping well.

I have a Swiss frank mortgage which I took out in 2007. When I signed the contract it was supposed to increase/decrease in line with the Swiss libor rate. For the first few years it decreased right down to half of one per cent. However over the last few years it has gradually increased - even though the Swiss libor rate has not increased. it is now at almost six per cent even the the Swiss libor is less than .25%.
I have written to the bank and they have said that because of the downturn in the financial market they have to increase the mortgage.
My interest rate is variable but it is supposed to increase in line with the Swiss franc libor.
As that has not increased what right does the bank have to take this action?
can they just keep on increasing it whenever they like?

Would really appreciate if you can advise me and guide me in what course of action I can take?

Thank you

Rollwithit

Hi rollwithit,

I'm in the same boat and was just wondering the same thing recently. I strongly expect Laiki Bank to ramp up their profit margin. We are the easy target after all. I expect this to happen within days of the preliminary bank debt assessment due at the beginning of December, and I think they will continue to screw us until this sorry saga is resolved one way or the other.

What they should do and what they will do are two different things!

That's my tuppence worth, but I am no expert.

Janner

Hi Both,

It's not only the Laiki that's been increasing their margins - other banks have been doing it as well.

A lawyer in Limassol has successfully negotiated a reduction in the margin for her clients with Alpha Bank - let me know if you want details.

Regards,