During the 1980s, Australians were hit hard as banks had sold them mortgages in Swiss francs to save them on interest rates. The next shoe to fall is the Swiss Franc Mortgage Panic that will be part of 2015.75. Countless homeowners outside of Switzerland have been sold mortgages in Swiss francs. They will now see their monthly repayments skyrocket by 30% thanks to the Swiss abandoning the peg.
Switzerland cut interest rates to -0.75pc this morning, sending the franc soaring against the Euro as well as the dollar and British pound. We will see this hit again with the as the dollar rises further for the greater amount of outstanding loans globally are in dollars.
The other-side of 2015.75 is starting to look unfortunately as Socrates has been warning since 1985. This Big Bang will be the noise heard around the world. Those with mortgages in a currency other than the domicile which appreciates, beware.
