Multi-currency mortgage

With this type of mortgage loan, the mortgage installments can be paid in a different currency to that of the country, which in Spain is the euro. When a multi-currency mortgage is taken out, instead of the Euribor, a different reference rate is used (normally the Libor). This reference rate is associated with a different currency (e.g., yen, dollar, Swiss franc, etc.). Therefore, the mortgage payments are made in another currency.

Changing the reference rate affects the total cost of the loan, as well as the monthly, quarterly or annual mortgage payments. As with the Euribor, the Libor and the currency with which it is associated evolve over time, whereby there can be increases that make your mortgage loan more expensive, or, on the other hand there may be decreases, which make it cheaper. In this respect, the 'strength' or 'weakness' of the currency chosen against the euro will be what conditions the cost of the loan.

Since these types of loans are subject to the foreign exchange market, the total cost of the loan and the mortgage payments can vary greatly.

As multi-currency mortgages can be more complicated than traditional Euribor-based mortgages, they are primarily aimed at customers with strong financial knowledge.

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