16 September 2008 - French Mortgage News | International Mortgage News | Partners News | Uncategorized |
Overseas mortgage update
Overseas mortgage rates cut
After a summer of bleak economic news and downbeat news stories regarding the state of the UK and many overseas property markets, the first rays of sunshine are starting to show through.
At the start of what is traditionally one of the busier periods of the year for overseas property purchases, a number of leading non-resident lenders have cut interest rates or launched new or promotional mortgage products targeting the non-resident market.
France and Portugal, two of the most popular foreign destinations are the first to benefit with indications that non-resident lenders in other popular markets may follow suit shortly.
0% introductory margins, the first 100% LTV mortgage products, improved interest only terms and innovative Euro mortgages that track the traditionally lower Libor CHF index are some of the examples of the new products available.
Furthermore, the possibility of further rate cuts in both the UK and Eurozone towards the end of the year highlight that this could herald the turning point in the interest rate cycle and trend towards higher interest rates and monthly mortgage payments.
The increasing trend for UK based, overseas home owners to refinance their properties to take advantage of the current £/€ exchange rates is only likely to become more popular as refinancing costs are reduced.
Fiona Watts, Managing Director of International Private Finance highlighted this growing trend ‘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. What’s more, with the recent launch of 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.’
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