New and Updates:

Monthly Overseas Mortgage Report: Aug 2010

Highlights

• 100% lending now available in Germany
• Enquiries for Italy increase by over 55%
• The outlook looks positive for international lending

Commentary

A great new range of international mortgages have just launched for UK property investors looking to buy in Germany. Interest rates start from just 2.39% variable, and there are a number of competitive short and longer term fixed rates also available. Funding options for employed applicants are potentially available all the way up to 100% of the property’s purchase price, with loans available from just 25,000 Euros. This new funding line brings with it a great opportunity to open up the German property market to many international property investors for the first time.

The unique culture of Italy is proving particularly popular this summer amongst British holiday makers and investors alike. Last month we experienced a 55% increase in mortgage enquiries for Italy, with Sicily and Campania proving particularly popular destinations. Property finance is currently available in Italy up to 70% loan to value, with interest rates starting from just 2.58%. Combine these factors with the strengthening British pound and it is easy to see why so many believe now is the right time buy an Italian property.

Over the past 5 months we have seen a significant shift in the domestic and international mortgage market with numerous lenders starting to find the confidence to loosen their lending criteria, and demand lower deposits.

The return of 100% financing and lower funding thresholds, has certainly been welcomed by investors, as property acquisitions have become much more accessible. Although we do not anticipate things to go back to where they were before credit crunch, we do believe the trend of lenders relaxing their criteria will continue well into the new year.

To find out more information about what mortgage options are available to you please contact us for a free a no obligation consultation.