Connect Overseas- Monthly Overseas Mortgage Report

Connect Overseas- Monthly Overseas Mortgage Report

There has been a strong increase in many of the key base rates in Europe this month which implies there is mounting pressure on many mortgage lenders to raise their interest rates. "Base Rates" is a term used in the market to help describe the various different pricing mechanisms used by financial institutions to lend to one another such as Euribor and LIBOR. Over the past 4 weeks Euribor has risen a massive 10.6% to reach 1.68%, with LIBOR (EUR 12 month) showing a similar rise of 8.2% to end up at 1.61%. With mortgage rates across Europe staying relatively unchanged over the past 3 to 6 months, these movements will no doubt put pressure on banks to revise their fixed rate mortgage products and will immediately effect property owners whose tracker rate mortgage is directly linked to one of these base rates. Currently fixed rate mortgages are available to non resident buyers from a very competitive 2.60% in France, 3.15% in Spain, 3.50% in Portugal and 5.05% in Turkey. So if you are thinking about buying or remortgaging a property, now might be the right time to lock yourself into a decent fixed rate.

Over the last year more people have become interested in buying a holiday home with rental potential than just acquiring a second home purely for their own use. On the face of it this finding is hardly surprising due to the financial commitments involved when buying a second property, as this way any rental income earned can be used to contribute towards the cost of the mortgage. In light of this we have managed to negotiate a new range of Exclusive market leading mortgages for investment properties in France, benefits of which include; Interest rates from just 1.79%, a discounted arrangement fee of 0.85%, loans available for purchase, remortgage or capital raising, flexible repayment options, with up to 30 year loan terms available. For more details on these exciting new mortgages please either contact a member of our team, or visit the Connect Overseas Pro website

Bulgaria became a big property hotspot for many UK investors between 2005 and 2008. Unfortunately for these investors Bulgaria was one of the countries to first feel the effects of the credit crunch with all six of the top mortgage lenders dropping out the market almost at the same time. Since then obtaining a mortgage to purchase a property in some areas of Bulgaria such as Sofia has been possible, but not straightforward. Currently there are no remortgage options for non residents in Bulgaria, be it to move to a better rate, or to capital raise. However there has been some signals over recent months that the Bulgarian mortgage market may once again be opening its doors for business later on this year, which would be news warmly welcome by property agents and investors alike.

To see which country ranks the highest in mortgage enquiries and which countires offer the lowest Interest rate, simplyfollow this link :

http://www.mortgage-brain.co.uk/pdf/COSMB_Monthly_Stats_-_February_2011.pdf

Mike Raybone, Chartered Marketer

Mortgage Brain Ltd

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