Financial Times FT.com

Swiss franc mortgages lose their appeal

By Jan Cienski in Warsaw and Thomas Escritt in Budapest

Published: October 30 2008 19:45 | Last updated: October 30 2008 19:45

For the past few years, taking a mortgage denominated in Swiss francs was a one-way bet for central Europeans. The interest rate was much lower than they could get in their native currency, and their mortgages shrank as zlotys and forints steadily gained in strength.

But the downside of taking unhedged foreign currency risks is becoming apparent as currencies across the region swing wildly against the franc, euro and dollar.

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