In order to access ECU's debt management programme clients must have a multi-currency loan facility from their lending bank. If your lending facility is denominated in currencies that fall against GBP, the GBP value of your debt reduces. Conversely, if it is held in currencies that rise against GBP, the GBP value of your debt increases.
For example, if the underlying currency of your lending facility is held in EUR and EUR falls by 5% against GBP, the GBP value of your loan reduces by 5%.
This example is for illustration purposes only.
The above chart illustrates, since the inception of our debt management programme in 1988, the "combined" benefits of debt reduction and cumulative interest rate savings, net of all fees and when compared to a standard variable interest-only sterling loan facility and taking into account cumulative interest rate savings.
The above chart illustrates the "capital only" value of single currency loans as compared with an ECU managed multi-currency loan facility (excluding interest rate savings, costs and fees).
Past performance is no guarantee of future performance. Foreign exchange movements can be sudden and substantial. Changes in the exchange rate may increase the sterling equivalent of a client's debt. The increase could be sizeable.