US | Financial Times

the debt burden by introducing consumer loans.

These selective companies provide the debtors’ huge
or small amounts of loans so that they can be free from stress of other
debts.

Majority of the population is facing the problem because
of loans due to which they are unable to buy valuable assets like cars,
houses and much more for future securities, as people cannot repay the
loans they are being questioned by many of the lenders as lenders wants
their repayment on time and if delays are from consumer side they charge
heavy markup on the principle amount which further increases the loan
amount.

To cope up with such issue as mentioned about and to
avoid paying heavy markup rates on principle amount these financial
consulting firms help the people to manage their debt in appropriate way
and for the services they provide they charge fee for it ,fees amount
differs in every firm its customer choice to choose the best firm who
provides their valuable services in less cost ,customer focuses on few
points while making choice for such firms means they chose the firm
according to their loans size and required facilities as the best choice
of it can only release them from such tension and debt burden.

In the present economy financial services
can be provided to the US population which will definitely help them to
cope up with their debt burdens, but this may also result in frudental
activities by customers with the lending firms as if any customer wont
be able to repay the amount of installment on time she/he will be charge
with extra fee which is consider as late payment charges and along with
this additional markup will be charged which will increase the
principle amount of the loan and in such situation if consumer will not
pay the loan amount back to the financial firms, the firms will face the
loss of money and they will have to record these type of loan in their
books as bad debts, but these firms by keeping in mind such incidents
are still providing the financial services to people
and supporting them in monetary terms ,now a days many banks and
financials institutions are providing consumer, business, auto loan ,
house loan and many others from which even common people plus the
business communities are taking advantages from such financial
institutions.

US population can avail consumer loan service from
these financial firms but while making any choice the one must work on
safety measurement means one should investigate about any firm he/she
chooses before starting any business transaction with them to avoid any
frudental issue late as some time these type of companies which are not
registered or are working on small scale can be fake which will later
create problem for one who make any agreement with them.

“So make a right choice on right time and make your life worth living without any stress and burden”

In the 2000s some British mortgage borrowers who were sold complicated
foreign currency mortgages are suffering a disadvantage with high
repayments and increasing debt because of large fluctuations in exchange
rates. The hardest hit borrowers have been those with home loans linked
to the Japanese yen which has recentlyrisen to levels not seen in over
20 years.

Many experts believe that these foreign currency mortgages should never
have been sold to clients who did not fully appreciate the risks
attached to such deals and urge clients to always take professional
advice regarding foreign currency loans.

Japanese yen foreign
currency mortgages were sold in the early to mid 2000sin order for
borrowers to take advantage of the low interest rates in Japan at a time
when interest rates were not low in the UK. This meant that monthly
mortgage repayments were less expensive than for a normal UK mortgage.
In 2004the difference in yen mortgage interest rates and sterling
interest rates wasabout 5 per cent so the savings were substantial.

However, the risk associated with a mortgagesin a foreign currency is
that if the foreign currency increases in value against sterling, the
monthly repayments go up in equivalent sterling terms. In addition, the
total amount of the debt in sterling also rises.

Shocking
figures that illustrate just how great this risk is show that a Japanese
yen based mortgage equivalent to 500,000 in 2004 would have increased
to a debt of 770,000 by 2009 and a staggering 855,000 by 2012 because
the yen-sterling exchange rate had risen from 200 to 117 to the pound
over that period.

Japanese yen, Swiss franc and US dollarmortgages were all sold by
well-known British banks in particular to UK expats living overseas, but
experts have argued that foreign currency mortgages are only suitable
for sophisticated investors who understand the risks. Foreign currency
mortgages can be a good solution for some high net worth clients who,
for instance,do not receive their income in sterling or who have major
assets in foreign countries. Such investors can benefit from this type
of deal but banks were selling these loans in the 2000s to less
knowledgeable investors as a means of just reducing the interest rate
payable. There was no managed multi-currency loan arrangement to hedge
the associated risks so it proved to be a highly risky strategy.

Some of the borrowers whose mortgages have been adversely affected by
the yen exchange rate rises have reported that they were not fully
warned of the dangers of such loans. Furthermore, many of them are not
covered by the UK financial services jurisdiction so cannot have their
complaints investigated by the UK’s financial ombudsman.

High
net worth mortgage experts believe that foreign currency mortgages are
harder to obtain now than they were 10 years ago but many banks still
offer this facility in the UK. Anyone considering such a home loan
should take professional advice from a high value mortgage broker with
experience in this type of lending and ensure they fully understand the
risks before agreeing to such a loan.

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US Financial Services

The Dangers of a Foreign Currency Mortgage