When the value of the mortgage is large, it may be possible to reduce or limit the risk in the exchange exposure by hedging (see below).
There are risks associated with these types of mortgages and the borrower must be prepared to accept an (often limited) increase in the value of their debt if there are adverse movements in the currency markets.
A successful currency manager may be able to use the currency markets to pay off a borrower's loan (through a combination of debt reduction and interest rate savings) within the normal lifetime of the loan, while the borrower pays on an interest only basis.
A borrower can also choose from various products available at specialist money transfer providers e.g.; Forward Contracts and Currency options, where you can choose a future date for the transaction to take place.
[citation needed] Both these products also allow a borrower to fix an exchange rate, which safeguards his money from the fluctuations in the currency market.