The Japanese crisis has brought back to the fore the multi-currency mortgages. Two years concerns have not been sufficient and this week the fluctuations experienced by the yen have become a new source of concern for those who contracted this type of credit.
the past two days the yen's volatility index has hit a steep rise and a sharp downturn, the market now seems to expect great movement and has been more relaxed after the G-7 intervention to stop the advance yen. A story that will relieve those who have hired a mortgage in yen, which trembled as Japan's currency on Thursday hit highest since World War II. On Friday the Japanese currency had its biggest drop in two years against the dollar and fell 3.8% against the euro.
A client of this type of mortgage notes to Cotizalia concern about recent developments and points out that in reality this takes time as well: "It is a concern, of course, because you see that every day you owe more (there are to be very psyched, because it owes more than a "virtual") and when it seems that things will get better, something that arises again strengthen the yen or the euro to fall. "
also explains that the review is monthly, with reference to the JPY 1M Libor, so that "as long as I pay in yen is very similar every month (about 103,000 JPY), that one month to another, exchange rate, I can vary up to 30 euros. "
However, experts downplay the effect of the earthquake and Japan's nuclear crisis on mortgages in yen and mid-term report that "do not expect big changes" for these credits.
department Bankinter analysis has been highlighted in a report that "the appreciation and depreciatory forces will be very balanced, but if they break in any direction depreciatory believe it would be more towards 115 yen in the first stage."
addition, experts from the bank, one of which offers this type of mortgage, note that "with many ports and airports destroyed Japan can not afford the yen further impedes their exports, so that the Bank of Japan will continue injecting ample liquidity, which is a very powerful force depreciatory" . In fact, Japan's monetary authority has already made shots over 460,000 million euros (in yen) since the tsunami occurred.
multicurrency mortgages became popular a few years ago with the boom and supported housing in the uptrend of the euro, but have stopped actively offered in the institutions as a result of the crisis triggered in 2007 that has resulted from the problems of the subprime crisis to the sovereign in Europe and have led to the sharp appreciation of yen.
"Before the crisis, while the euro has appreciated, the volume that the customer had to pay was declining and there was a chance, but now there is a lot of volatility," say industry sources. Such products are aimed at customers with higher incomes and sophisticated and it is a group "very marginal".
The euro maintained a bullish trend against the yen, coinciding with the boom of the brick and between March 2007 and August 2008 was around the level of 160 yen, but changed from the time evolution and Japan's currency began to gain momentum due to the increase in demand, as it believes the yen as a safe haven in times of crisis.
This made the euro fell between August and October 2008 by 31% to 116 yen and since then has failed to recover. From the highs of July 2008, the euro has lost 32% of its value against the JPY, which has affected the cost of mortgages in this type of currency.
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