HSBC Foreign Currency Mortgages

Two things to remember: Your property may be repossessed if you do not keep up repayments on your mortgage; and changes in the exchange rate may increase the sterling equivalent of your debt.

Our mortgages are available in euro, US dollars, Australian dollars, New Zealand dollars, Canadian dollars and Hong Kong dollars. You can eliminate monthly foreign exchange charges, and borrow at a lower rate of interest than is available in sterling.

There is also the option to switch the currency of your mortgage. You can switch currencies if you move, or if you want to take advantage of movements in exchange rates.

But please be aware, exchange rate markets can be very volatile and as a result large losses as well as large gains can be made. You can switch currencies once in every 12 month period, commencing from the date of the initial drawdown.

Repayment options

You can also choose how to repay your mortgage. You can decide to overpay, saving you money in the long run. And choose whether you want your repayments to pay off your loan, or just the interest on it: Capital Repayment or Interest Only options are available.

You'll need to have, or to open, an HSBC Offshore Bank Account in the same currency as the loan. Your repayments will be debited monthly to that account. You should open this account before your mortgage is processed, in order to avoid delays.

We have no tie-ins: you're free to move your mortgage elsewhere at any time. Interest is also calculated daily rather than annually, which is the fairest way.

The balance on which your interest is calculated is reduced as soon as a mortgage payment is received, so you don't end up paying interest on money you have already repaid.