As the strength of the Pound falls against the Euro and economic conditions worsen in the UK and Ireland, more products are being released to facilitate the repatriation of funds from an overseas property back to the respective countries.
Zero per cent introductory margins, the first 100% LTV mortgage products, improved interest only terms and Euro mortgages that track the traditionally lower Libor CHF index, are just some of the examples of the new products available.
“We are seeing a significant increase in the number of clients who are looking at the refinancing options available in many overseas markets so that they can take advantage of the current £/€ exchange rates,” explained Fiona Watts, MD of International Private Finance, a UK-based International mortgage broker. “What’s more, with the recent launch of our online mortgage best buy tables it is even easier for individuals to keep an eye the most competitive mortgage products available, particularly as people look to take advantage of lenders promotional rates aimed at stimulating the market.”
Spanish-based mortgage broker Capital Financial Partners has just launched its new remortgage product for those that paid cash for their property in Turkey.
This product offers up to 50% LTV for a maximum of 10 years at an annual interest rate of 6.96%.
Patrick Kavanagh, corporate director of CFP, said: “This will be of great benefit to those who are now in need of some extra cash due to the increased affects of the credit crunch at home in the UK and Ireland. Property buyers can benefit from having more money now and paying this back over a short period of time, at the best interest rate available in Turkey.”
Assetz Finance has also recorded a 50% increase in enquiries regarding cash raising mortgages on European property this year and has launched a remortgaging service to handle the demand.
“While interest rates have risen in Europe and borrowing is no longer available at 3-4% as it has been in the past, most European lenders are still doing business as normal and have not tightened their lending criteria,” explained Katy Hepworth, overseas mortgage manager at Assetz Finance. “They are in a position to continue lending whilst their UK and US counterparts are severely restricted, and British holiday home owners are beginning to take advantage of this opportunity.”
In Ireland, Dublin-based mortgage broker ACAP, which is authorised by the Financial Regulator, said yesterday it had linked up with 350 international banks and can arrange up to 60% – 80% remortgages on properties in Spain, Portugal, France, Germany, the UK, the Caribbean, Dubai, Cape Verde and Italy. It claims it is the first and only mortgage intermediary to offer this service on foreign property to Irish owners.
“This is a very cost effective way to access capital and is of particular interest to people who simply need cash, or those who want to benefit from the lower interest rates in foreign countries to offset more expensive borrowings in Ireland,” said a spokesperson. Source: OPP