property


Mortgage bargains to be had in Europe, new index suggests

by Ray Clancy on November 27, 2014

Would-be expats looking to move to popular destinations such as Spain and France can find some of the lowest mortgage deals ever available, according to new research.

British buyers in particular can use the strength of the pound against both the Euro and the dollar to their advantage, according to the latest quarterly index from the Overseas Guides Company.

Very few lenders offer mortgages to expats returning to the UK

Popular expat destinations like Spain and France have record low mortgage rates at the moment

The index looks at mortgage rates across the most popular expat destinations to establish where the best deals can be found.

Spain remains the most popular destination amongst expats, according to the index. There are good repossession properties still available and mortgage rates on offer from as little as 2.75%.

Angelos Koutsoudes, head of the Overseas Guides Company, pointed out that the International Monetary Fund recently predicted that Spain will lead the rest of the European Union in terms of economic growth over the next year.

‘Team that with these low rates and the Spanish government’s on-going commitment to attracting overseas buyers and you will begin to understand why Spain remains such a popular choice,’ he said.

In France, interest is also high and the popularity of the country with expats has been further fuelled by the European Central Bank’s (ECB) interest rate drop introduced throughout Europe, which has made it possible to secure a mortgage in France for as little as 1.8%.

Rates on offer in Portugal sit slightly higher at 4.1%, which the index says is a reflection of the nation’s desire to safeguard its economy now that things have once again started to move in a positive direction.

‘We have had close to 3,000 enquiries about buying property in Portugal so far in 2014. The Algarve remains a popular choice for expats, especially those looking for a lifestyle change or a buy-to-let investment,’ said Koutsoudes.

Another country benefitting from the ECB low base rate is Italy, where it is possible to secure a rate of 2.9%. ‘There has been a reduction in all of the taxes involved in purchasing Italian property. Other reasons for its growing popularity include its lack of inheritance tax and no Capital Gains Tax after five years,’ explained Koutsoudes.

Buyers can find a mortgage in Turkey for a rate of around 6.4%. Despite recent political conflict, 2014 has been a year of significant growth in Turkey, suggesting that financially savvy overseas property buyers haven’t been put off snapping up the readily available bargain properties.

The property market in the United States is in recovery and this looks set to continue with mortgage rates of 3.5% being made available to overseas buyers. In Australia and New Zealand, which consistently attract expat buyers, rates of 4.65% and 5.85% respectively can be secured.

‘Although there are some fantastic rates available in long haul destinations, should you really wish to benefit from these record low mortgage rates, your best bet is to focus your search on Europe,’ added Koutsoudes.

According to Charles Purdy, director of the Smart Currency Exchange, it is important that overseas buyers understand the importance of effectively managing their monthly currency transfers for regular payments such as mortgages.

‘If you’ve benefitted from these great mortgage rates, the last thing you want to do is end up losing the money that you would have saved yourself as a result of adverse exchange rates or in fees charged by your bank. Look for ways to manage this risk, through using a reliable, regular payments programme and forward purchasing currency when rates are favourable,’ he said.

{ 0 comments }

Thumbnail image for Expats faced with shifting home buying rules in the UAE

Expats faced with shifting home buying rules in the UAE

November 20, 2014 property

Expats buying a property in the United Arab Emirates are facing changes in terms of access to both available properties and finance. Sharjah is opening its property market to foreign investment for the first time and HSBC has said that it is reviewing its Abu Dhabi mortgage lending strategy for expats. Leases of up to [...]

Read the full article →
Thumbnail image for More Brits consider moving abroad to make home ownership dream reality

More Brits consider moving abroad to make home ownership dream reality

October 28, 2014 Britain

People become expats for lots of reasons including work and a better lifestyle, but now it seems that the cost of property in the UK is emerging as a new reason for moving abroad. New research has found that a fifth of disillusioned house hunters would consider leaving the UK — and the United States [...]

Read the full article →
Thumbnail image for British expats get landmark ruling on illegal property cases in Spain

British expats get landmark ruling on illegal property cases in Spain

October 7, 2014 property

British expats who bought homes in Spain and found themselves in the middle of an illegal home scam are closer to being able to own their properties legally. In a landmark case, a judge in Almeria has awarded €135,000 damages to three British families who bought illegal homes a decade ago in Albox, which might [...]

Read the full article →
Thumbnail image for Expats buying more affordable property in the UK

Expats buying more affordable property in the UK

September 4, 2014 Britain

British expats are increasingly buying property in the UK, but they aren’t splashing out, with the most popular investments in the £55,000 to £70,000 range, research has found. According to Find UK Property, a company that specialises in finding properties for overseas investors, sales to British expats have increased by 60% in the first half [...]

Read the full article →
Thumbnail image for Expats in Dubai struggling to buy property due to mortgage caps

Expats in Dubai struggling to buy property due to mortgage caps

August 22, 2014 Dubai

Developers in Dubai should consider reintroducing rent-to-own schemes as expats are struggling to afford to buy a property in the emirate, it is claimed. Such schemes were popular during the early 2000s when Dubai was establishing its own property marketplace. They helped those struggling to afford to buy amid stricter regulations designed to cool rising [...]

Read the full article →
Thumbnail image for New range of mortgages for UK expats wanting buy/let opportunities

New range of mortgages for UK expats wanting buy/let opportunities

July 18, 2014 property

A new range of mortgages aimed at British expats who want to buy and let a property in parts of the UK has been launched. Skipton International is offering a maximum loan to a value of 75% on residential properties for buy-to-let, but the property must be purchased in England and Wales. Applicants will need [...]

Read the full article →
Thumbnail image for New law will allow expats to buy property in Kuwait, but restrictions apply

New law will allow expats to buy property in Kuwait, but restrictions apply

January 8, 2010 property

A new law allowing all expatriates to purchase real estate property in Kuwait for the first time is unlikely to be linked to residency, it is claimed. Changes to law number 74/1979, will mean that expatriates, regardless of nationality can buy one apartment as long as it is not larger than 350 square meters. Currently only Arabs with [...]

Read the full article →
Thumbnail image for Buying property in  Australia

Buying property in Australia

October 4, 2009 property

Australia is one of those unique countries whereby the vast majority of the population is housed in a relatively small part of the vast landscape of the country.  This has therefore led to various short-term swings in property prices, linked very closely to an economy that is dependent on commodity prices. Historically in Australia, the [...]

Read the full article →
Thumbnail image for Buying property in  France

Buying property in France

October 4, 2009 property

Historically, France has been a very popular location for second homes / holiday homes, with well over 70 million tourists a year.  While the majority of overseas or foreign national buyers purchasing property from France have been Expats from the UK , interest from other areas of Europe is starting to pick up.  The country itself [...]

Read the full article →
Thumbnail image for Buying property in Canada

Buying property in Canada

October 4, 2009 property

The Canadian property market is very different to your stereotypical European market, although on further investigation it seems to be a lot simpler.  Generally houses are more spacious with basements the norm – which can often double the floor space of your property.  Not generally seen as a first port of call for relocating your [...]

Read the full article →
Thumbnail image for Buying property in Portugal

Buying property in Portugal

October 4, 2009 property

There are few countries in Europe that have benefited as much as Portugal from the worldwide property boom.  The country has always been very popular with tourists, and very often seems to be a consideration for retired couples looking to relocate overseas.  This has resulted in not only substantial interest in the local property sector, [...]

Read the full article →
Thumbnail image for Buying property in Spain

Buying property in Spain

October 4, 2009 property

The last few years have seen the Spanish property market experiencing something of a boom time, with both foreign and local buyers looking to snap up prime properties. While Spain has a fully developed property market, there are massive regional variations that can often give the wrong impression to those not doing their homework.

Read the full article →