changing currency of Hungarian Property Mortgage

N

neilgarv

Registered User
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Hi
I currently have a mortgage denominated in CHF for a property in Hungary. I want to transfer to a EUR denominated mortgage, to eliminate the exchange rate risk. I`ve only been paying the mortgage payments for about 6 months. The current deal I`ve got is interest only for 5 years,@6%.I`m due to go over to Budapest in about 3 weeks time. Does anyone know if a bank will be willing to do this, and will the terms/interest rates be likely to be worse given the current environment?

Thanks
 
It would all depend on the bank's own policy in relation to this, but it's very unlikely that it will be as simple as changing currency. You would more than likely have to pay off the CHF mortgage and take out a new EUR mortgage, which would undoubtedly have significant administrative fees.

Typically speaking, the terms and conditions of a Hungarian mortgage would be worse now than from 6-12 months ago.
 
Thanks for that. I thought I would have to take out a new mortgage to pay the other one off. I think I`ll discuss it with the bank, and get figures for the Admin Fees, interest rates etc. before deciding whether it is worthwhile or not.
 
Hungarian banks have a terrible habit of charging crazy admin fees for doing very little. Best of luck with it!
 
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