Thousands of Britons who bought property in Cyprus with Swiss franc mortgages are being urged to submit claims for mis-selling, ahead of a deadline at the end of the year.

Between 2003 and 2010, Cypriot banks suggested buyers take out a mortgage in Swiss francs because the interest rates were lower, but this advice backfired when the franc soared after the financial crisis, and mortgage repayments doubled.

Lawyers say that the banks often failed to explain the potential risks of currency fluctuation that could cause repayments to rise, and also applied heavy interest rate rises.

This has resulted in property owners facing unsaleable and unlettable apartments, gigantic loan obligations and negative equity following the collapse of the Cypriot property market.

Those who think they may have been mis-sold a product must act quickly, as claims have to be filed in Cyprus by 31 December, or they are likely to fail outright, said Duncan McNair from Cubism Law in London. He said British purchasers of properties had almost €2bn of loans outstanding to Cypriot banks.

“Commonplace features that I am dealing with are a failure to advise on the risks of foreign currency mortgages, serious misrepresentations as to the property itself, and dubious powers of attorney – as well as unhealthily close relationships between the banks, developers and selling agents,” he said.

If you think you have been affected, speak to an experienced English lawyer familiar with the situation to immediately file protective claims, in England first (asserting your wish to have your claim heard in England in preference to the Cyprus courts), then in Cyprus.

“These claims must be filed in time and in the proper form,” McNair said. Those who fail to make a submission can expect to lose the right to claim at all in Cyprus, which risks enforcement by the bank against their UK as well as their Cyprus assets.

The Guardian