My wife and I bought a German house ~5 years ago, we took out 50% of the loan in CHF and 50% of the loan in Euro (I work in CH, she works in DE, and we actually now live in CH and rent the house in DE). We paid off the Euro part and went to refinance the CHF part with UBS, and we have investments in UBS actually greater than the loan we are taking (i.e. this is a very low risk loan). At the last minute I was told by UBS they no longer offer loans to US citizens, as the security for the loan would be the house and a US citizen is 50% owner.

Has anyone heard of this? Anyone at UBS can debunk or confirm this? I was completely shocked by this.

Thanks for any help!

You can offer UBS to pledge some of your other assets as collateral.

The previous poster is correct, that is what I was told I had to do, and be aware they are frozen while pledged.

good luck

We could do that, but then it is really no longer a mortgage and we already have part of that pledged on another loan. Also, the lending value is a percentage of instruments you are using. Therefore, if you have stocks and funds they do not recognize, then they are zero lending value. Unfortunately, this is our case.

Can someone debunk this issue about US people holding a C permit not being able to take a mortgage from UBS or other Swiss banks?

Thanks!

Following recent events in the USA, UBS really don't want to deal with US citizens any more.

Each bank has its own mortgage policy. And within the bank, a credit officer assesses the collateral and credit worthiness.

The OP is US citizen and the house is in DE. The other assets are exotic and do not qualify as collateral. This complex and unusual constellation has overwhelmed the credit officer. Difficult to say how predominant the US factor is.

Maybe they just don't want to do business with every American citizen or perhaps they prefer to limit their exposure to American customers. Try another bank.