Paphos People

We have a Swiss mortgage, we were talked into it by Bank Cyprus and the developer when we bought.
Our payments have gone up to €1200.00 per month and we cannot pay. The bank wont help and we have told them we will hand our keys back in. They said they don't want them and let is go to court but they are charging us €4000.00 every 6 months interest

We paid 86,000CYP (147.000 euros) for the house 40.000CYP (68000.00 euros) pounds deposit and paid the mortgage for 5 years, (been hear 7 years) and the mortgage is 125000.00 euros now, how is that so? We have had the house on the market for 3 years.

What will happen to us, we now have no jobs and no home in the UK, I am worried sick. All my husband gets is his UK pension.

Any advise will more than appreciated.

Thank you

Kittencat

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Kittencat

Dear Kittencat,

Unfortunately you are in the same position as many other people. When somebody takes a mortgage on a foreign currency they have to undertake the risk. Sadly all the people who took Swiss mortgages have a problem because of the exchange rate and are finding it hard to make the payments.

If you do not have any other assets in the U.K. and you are unemployed then for the Bank it will be very difficult to take any money from you. If the Bank decides to take legal action against you they will get an order from the Court to sell the house and the funds from this auction sale will go towards the debt. They will ask you to pay any shortfall.

If you have not assets here or in the U.K. and only have a small pension it is very difficult for the bank to take anything else.

Please don't hesitate to contact me if you need any assistance.


Best Regards


Haris Kalogirou