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Old 14.08.2008, 12:38
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Swiss mortgage/remortgage on house in UK?

I moved to Switzerland from the UK in March 2007 and now consider Switzerland my permanent home.

I still have a house in the UK, which I want to remortgage to get a better interest rate (I don't want to sell, because with all the doom and gloom in the British press my house has gone down in value, so it doesn't make sense to sell at this time). However, due to a bad patch that I went through a few years ago, my UK credit rating is rubbish and although I've always been unhappy with Bank of Scotland, with whom I have my mortgage, no one else in the UK will consider me for a remortgage. As I have found to my cost, credit files go back six years and all that the green ticks on my credit files over the last 17 months have done is to knock off the green ticks from six years ago, so month after month I am still summarised on all three of my credit files as either untouchable or virtually untouchable. My current bank, Nationwide, won't even give me a debit card despite the fairly large sums that I pay in every month, because their computers say no.

Consequently, I am looking to take out a mortgage here in Switzerland on my property in the UK and properly move my financial base to Switzerland. However, my bank here, Credit Suisse, tell me that they only give mortgages on properties in Switzerland and doing a search through the forums gives no previous instance of this question (maybe I was using the wrong keywords).

Has anyone taken out a mortgage in Switzerland on a property overseas? Good experiences? Bad experiences? Recommendations? Anyone to avoid?

Any help would be very much appreciated.

Many thanks,

Martin

Last edited by martinreed; 14.08.2008 at 13:41.
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Old 14.08.2008, 12:52
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Re: Swiss mortgage/remortgage on house in UK?

Hi Martin,
I tried the same (the property is not in the UK) with CS and UBS and with the same result - unless the property is within 100 klms of the Swiss border (according to UBS) they did not wish to offer a mortgage on it, as they do not know the market well enough.

If you do find a bank interested in this, please let me know !

Barbra.
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Old 14.08.2008, 13:10
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Re: Swiss mortgage/remortgage on house in UK?

I also discussed this with CS as I am looking to get back into the UK housing market especially in the current state it is in!
while CS said the same re mortgages for the UK they did say they would loan me the money. in fact they sent immediately by post next day the forms and paperwork!
so while you may not get a "mortgage" they will loan you the cash over a long term period. depends on what you are looking for and your personal circumstances. for me 100000chf over 5 years there was really no discussion.
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Old 16.08.2009, 11:22
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Re: Swiss mortgage/remortgage on house in UK?

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I moved to Switzerland from the UK in March 2007 and now consider Switzerland my permanent home.

I still have a house in the UK, which I want to remortgage to get a better interest rate (I don't want to sell, because with all the doom and gloom in the British press my house has gone down in value, so it doesn't make sense to sell at this time). However, due to a bad patch that I went through a few years ago, my UK credit rating is rubbish and although I've always been unhappy with Bank of Scotland, with whom I have my mortgage, no one else in the UK will consider me for a remortgage. As I have found to my cost, credit files go back six years and all that the green ticks on my credit files over the last 17 months have done is to knock off the green ticks from six years ago, so month after month I am still summarised on all three of my credit files as either untouchable or virtually untouchable. My current bank, Nationwide, won't even give me a debit card despite the fairly large sums that I pay in every month, because their computers say no.

Consequently, I am looking to take out a mortgage here in Switzerland on my property in the UK and properly move my financial base to Switzerland. However, my bank here, Credit Suisse, tell me that they only give mortgages on properties in Switzerland and doing a search through the forums gives no previous instance of this question (maybe I was using the wrong keywords).

Has anyone taken out a mortgage in Switzerland on a property overseas? Good experiences? Bad experiences? Recommendations? Anyone to avoid?

Any help would be very much appreciated.

Many thanks,

Martin
1. It is terribly risky to take out a mortgage in a currency other than the numéraire of the house price. Think of all those Hungarians with mortgages denominated in euros.

2. You may find that foreign private banks such as ABN-AMRO can help. But they may want your investment business as well.

3. Bad credit is bad credit, although there are always exceptions. I was a bankruptcy lawyer once, and wealthy people who file bankruptcy never seem to lose their credit (except for the period before discharge when it is illegal for them to acquire it without the trustee's consent). Of course the key to a successful bankruptcy is pre-bankruptcy planning, as Ian Maxwell well knew. (He had £1 million in assets. The cost of his bankruptcy was ... £1 million. His creditors got zilch. Or so I heard from England's leading bankruptcy lawyer.)

4. The foregoing notwithstanding it's hard to see how you could get a "better rate" unless you are paying bridge-loan rates now. Nobody is giving mortgages without huge amounts of equity in the property (in which case it's hard to see how your credit rating got trashed). But what do I know: I don't know your facts.
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Old 16.08.2009, 12:39
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Re: Swiss mortgage/remortgage on house in UK?

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I still have a house in the UK, which I want to remortgage to get a better interest rate (I don't want to sell, because with all the doom and gloom in the British press my house has gone down in value, so it doesn't make sense to sell at this time). However, due to a bad patch that I went through a few years ago, my UK credit rating is rubbish and although I've always been unhappy with Bank of Scotland, with whom I have my mortgage, no one else in the UK will consider me for a remortgage. As I have found to my cost, credit files go back six years and all that the green ticks on my credit files over the last 17 months have done is to knock off the green ticks from six years ago, so month after month I am still summarised on all three of my credit files as either untouchable or virtually untouchable. My current bank, Nationwide, won't even give me a debit card despite the fairly large sums that I pay in every month, because their computers say no.

Has anyone taken out a mortgage in Switzerland on a property overseas? Good experiences? Bad experiences? Recommendations? Anyone to avoid?
Offshore banks in Channel Islands and Isle of Man offer mortgages on UK property and some offer mortgages in other currencies, so you can get, for example, a CHF mortgage that tracks the CH Libor rate. HSBC International and Lloyds TSK Offshore are two banks I know offer this. Last time I spoke with HSBC, they would lend 60% loan to value, but not it your existing total debts were >£600k.

My experience was that Swiss lenders won't mortgage property in the UK, but they will lend you 1mil plus here without looking at the property
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Old 17.08.2009, 19:18
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Re: Swiss mortgage/remortgage on house in UK?

It occurs to me that a good London mortgage broker -- Savills come to mind because their affiliated estate agency has a branch in Switzerland -- could give you some advice. I still think you have a hard slog -- so-called "liar's loans' (non-status loans) are scarcely available anymore. But a firm like that is worth talking to.
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Old 22.08.2009, 12:47
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Re: Swiss mortgage/remortgage on house in UK?

Hi Martin,

My firm provides property finance as part of its wealth management service. This now includes finance (or re-finance) on properties around the EU, using Swiss income and assets.

There will be currency risk on either the capital or repayments, but as we can give you the choice of currency for the loan, you can at least choose which.

Any lending bank would want recourse though, the ability to pursue their security, which means they will have a presence in the country where the property is, and therefore may check your status there.

Give me a shout if youre interested and happy to outline your status in more detail.
Cheers
Phillip
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Old 30.04.2010, 08:51
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Re: Swiss mortgage/remortgage on house in UK?

Hello,

I am wanting to bump up this thread....

Does anyone know if a Swiss bank will lend you money to buy a property in Italy?

Thanks,

Charde
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Old 01.05.2010, 22:26
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Re: Swiss mortgage/remortgage on house in UK?

basically no.

or maybe, if its really close to the border.
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Old 01.05.2010, 22:53
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Re: Swiss mortgage/remortgage on house in UK?

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1. It is terribly risky to take out a mortgage in a currency other than the numéraire of the house price. Think of all those Hungarians with mortgages denominated in euros.
Surely the way to reduce currency risk on any debt is to hold it in the currency you earn? Those Hungarians would have been fine if they were working in the Eurozone.
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Old 03.05.2010, 14:02
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Re: Swiss mortgage/remortgage on house in UK?

Gastro

exactly my thoughts if you have debt and income in the same currency you are natrally hedged and remove exchange risk. I have recently moved to Zurich and am look for a CHF morgage to replace my UK mortgage (on the same home as I will return to the uk at some point).

Personal opinion is that the exchange rate also looks nice just know to do this but then again......whatdoiknow
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Old 22.12.2013, 19:58
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Re: Swiss mortgage/remortgage on house in UK?

Hi there,

I see the old discussion and no recent replies.
I recently landed in Switzerland and consider moving my Mortgage in CH for an apartment outside.

Has the approach of the Swiss banks changed in the last couple of years? Did anyone succeed in getting a mortgage for in CH for a property outside and could share some tips?

Thx,
Jorgeu
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Old 22.12.2013, 20:30
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Re: Swiss mortgage/remortgage on house in UK?

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Hi there,

I see the old discussion and no recent replies.

I recently landed in Switzerland and consider moving my Mortgage in CH for an apartment outside.

Has the approach of the Swiss banks changed in the last couple of years? Did anyone succeed in getting a mortgage for in CH for a property outside and could share some tips?

Thx,
Jorgeu
See this: https://duckduckgo.com/?q=foreign+cu...ortgages+swiss

The FT is one of the hits. Here are the first few lines of that article:

"Financial Times
March 15, 2013 11:28 pm
Banks scrap foreign currency mortgages

"By Tanya Powley and Alice Ross

"Leading private banks are no longer offering mortgages in foreign currencies after wealthy borrowers who tried to profit from lower interest rates abroad have been hit by rising repayments as the value of the pound has fallen.

"Foreign currency loans were sold by private banks including Royal Bank of Scotland International, Lloyds International and Barclays Wealth before the downturn.

"Wealthy homeowners typically took advantage of lower interest rates in countries such as Switzerland and Japan to reduce repayments on second homes abroad or investment properties.

"However, borrowers have seen their mortgage debt soar as sterling has fallen, outweighing interest rate savings.

..."

The situation is far worse for those who borrowed in CHF for Hungarian or Icelandic property. Bankruptcies and abandonment hit the banks hard, and I wonder if such borrowing is still available to most people.
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Old 22.12.2013, 21:47
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Re: Swiss mortgage/remortgage on house in UK?

What type of rates are available here?
Are interest rates lower than 5%?
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Old 22.12.2013, 22:02
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Re: Swiss mortgage/remortgage on house in UK?

I assume you mean a Swiss franc mortgage for a property located in another country, and I can't answer that. For Swiss franc mortgages for Swiss properties there is an online calculator: http://fr.comparis.ch/hypotheken/hypothekenrechner.aspx

At present it is cheaper to fix the rate for one, two or three years than to have a variable rate and that's something of an anomaly to me. Here's the Credit Suisse rate chart (1.2% for a 2-year fix): https://www.credit-suisse.com/ch/fr/...tes.html/popup
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Old 22.12.2013, 22:28
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Re: Swiss mortgage/remortgage on house in UK?

What about a loan which is in already in CHF for a property in the EU? Any experience or info with something like that? Any chance a CH bank would finance that?
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Old 23.12.2013, 00:00
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Re: Swiss mortgage/remortgage on house in UK?

I'd imagine that the banks, having had their fingers burned already over Eastern Europe mortgages, would not be lending against foreign property. Then again, the stupidity of bankers seems to know no bounds...
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Old 23.12.2013, 00:03
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Re: Swiss mortgage/remortgage on house in UK?

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I'd imagine that the banks, having had their fingers burned already over Eastern Europe mortgages, would not be lending against foreign property. Then again, the stupidity of bankers seems to know no bounds...
It's all down to what extra security you can give, if you don't need the money they will probably lend it to you
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Old 23.12.2013, 00:04
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Re: Swiss mortgage/remortgage on house in UK?

It would be interesting to hear from Martinreed and hear what happened (his post was in ... 2008!)... Must say I'd be very surprised, and indeed as a bank customer a bit concerned- if they were prepared to lend money on a house abroad in a very difficult market, in negative equity, and to someone who has busted his credit rating. Really?
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Old 23.12.2013, 00:06
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Re: Swiss mortgage/remortgage on house in UK?

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It's all down to what extra security you can give, if you don't need the money they will probably lend it to you
"A Banker Lends You His Umbrella When It’s Sunny and Wants It Back When It Rains"
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