Britons start legal action against Cyprus mortgages
ThisisMoney.co.uk reported today that up to 20,000 aspiring foreign investors took out mortgages between 2005 and 2008 many not realising the loans would be in Swiss francs.
Judicare, the firm representing one such group of investors, will argue that they were not properly told about the nature of the Swiss franc mortgage.
The result of the mortgages being in a foreign currency was volatile monthly payment swings which borrowers could not maintain.
The rapid decrease of property prices in Cyprus added to the problems as developers and banks affected by the crisis increased pressure on borrowers in difficulty.
Judicare will represent a group of Britons on 17 October where it will argue that the mortgage deals are void because the power of attorney needed by each Briton to instruct a solicitor to act on their behalf in Cyprus was not completed correctly by the banks and solicitors involved.