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MULTI CURRENCY MORTGAGES
THIS PRODUCT IS NOT AVAILABLE IN ANDALUCIA
This type of mortgage is far cheaper than using the common base rate in Spain known as the Euribor. Of course there is always a currency risk, however the bank keeps a daily control of the rates.
The application and subsequent approval will be based on affordability using the Euribor. This is as a precaution for the bank and if all other base rates, it being the Japanese Yen or the Swiss Franc were to rise substantially, the mortgage will be switched back to Euribor.
Currently the best rate to use is the Japanese Yen. The base rate is in the region of 0,76%, however this varies on a daily basis.
Not all applicants will be approved for this mortgage. If the bank feels that you are not aware of the currency risk, they will instead offer a mortgage based on Euribor. |