British pensioners face loss of Limassol home over Swiss franc mortgage

A British retired couple residing in Limassol for 20 years is facing the potential loss of their home, which is scheduled for an electronic auction on December 29, 2026. The property was purchased using a mortgage originally valued at approximately €187,000, which has since surged to an alleged debt of €400,000. Despite the couple's attempt to settle the debt using proceeds from property sales in the UK, the current mortgage holder has rejected their offer, demanding an additional immediate payment of €30,000.

This case stems from a period between 2003 and 2010, when Cypriot banks heavily marketed loans denominated in Swiss francs due to lower interest rates. The strategy failed for many borrowers when the Swiss franc strengthened significantly against the euro following the global financial crisis, causing mortgage repayments to double. Lawyers note that banks frequently failed to adequately inform clients of the inherent currency risks associated with these financial products.

The couple, identified by the pseudonym John Taylor, remains in a state of distress as they face the prospect of homelessness. While they continue to advocate for their case publicly in hopes of reaching a settlement, no resolution has been reached with the debt management firm, leaving the auction date unchanged.