Multi-currency mortgages

They are a type of loan which is repayable in a currency other than the euro.

These are variable rate mortgages, in which the Libor, instead of the EURIBOR, is the reference rate.

When weighing up whether you should take out a multi-currency mortgage, you should consider that:

  • Monthly instalments usually vary so you will pay a different amount every month.
  • The amount of the debt may also increase or decrease, depending on the currency in which it is denominated.
  • You can switch currencyon the dates agreed in the contract, albeit at a cost.
  • The currency of your debt is different to the currency in which you receive your income.

If you took out a foreign currency mortgage loan after 16 June 2019, you have the right to convert it into:

  • the currency in which you receive most of your income or in which you hold the assets you will use to repay the loan, or
  • the currency of the country where you resided when you took out the loan or where you reside when you apply for the conversion.

In both cases, the exchange rate in force on the date you apply for the conversion published by the European Central Bank will be applied, unless the contract provides otherwise.


Origination date: 1 January 2017; 1 Japanese Yen equals €0.01 Euro. If you borrow €60,000 euro, the equivalent value in yen will be €6,000,000.

The reference interest rate is variable and based on the Libor, which on 1 January 2017 is 0.098% per month, resulting in an instalment of 28,067.33 yen, which at the current exchange rate is €280.67.

If the exchange rate and the reference rate remain stable, the corresponding instalment will also remain stable. However, if on 1 January 2020, the LIBOR remains the same but the exchange rate rises to 1 Japanese Yen equals €0.02, the instalment in yen would be the same (28,067.33 yen), but the repayment denominated in euro would double to €561.34.

Furthermore, as a result of the increase in the exchange rate, after three years the outstanding capital is 5,187,404.14 yen, the equivalent value in euro is €103,748.08 which is significantly higher than the initial amount of €60,000 .

Find out more about multi-currency mortgages and the claims usually received in this regard in our 2020 Complaints Report (in Spanish)  (117 KB)

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