The Tide is Turning Claim the Experts

The Tide is Turning Claim the Experts

WATCH OUT! THERE’S A BUYER ABOUT

Mike Walsh

The steadily rising pound against the euro has got more than Spain’s ex-pat community licking their lips in anticipation. The UK’s property speculators are finally getting their wallets out.

If the pound’s value continues to rise; and the consensus of informed opinion believes it will, sellers on the Costas will find more viewers. The downside is that they will not get as many pounds sterling … if they are converting.

Estate agents and foreign exchange providers are experiencing a revival of interest from those interested in buying properties abroad. The most popular locations are Spain, France, Italy and Portugal. Conti Financial Services say enquiries have jumped by 20 per-cent in recent weeks.

THE PERFECT STORM

Michael McLaughlin of Southern Comfit International says the reversal was quite predictable. “When the pound was falling to near parity reluctance to buy was perfectly understandable. The situation is now reversed and the ‘tanking’ of property prices have combined to create the perfect storm.”

The UK pound’s seemingly inexorable rise has also reversed the trend in which European property buyers preferred buying into the UK market. The tide has turned in favour of those selling and buying along Spain’s Mediterranean coastlines.

Currencies Direct, Mark O’Sullivan, the group’s director of dealing says, “We have seen a dramatic increase in the amount of money entering the international property market.”

SPAIN OFFERS MORE FOR LESS

Is the value difference between the UK improving? Michael McLaughlin thinks so. “In truth Spain has always offered more for less than has the UK. It isn’t back of the envelope accountancy to say you get twice as much for your money in Spain as you do in England; with other advantages added.”

The more pragmatic buyers appreciate that whilst the value of the pound isn’t as potent as it was several years ago, the drop in property prices on the Costas has compensated. A buyer in 2009 is actually getting as good a deal than those who bought prior to 2005, because artificial values have been replaced by reality.

Astute property buyers realise that whilst the pound is 15 per-cent weaker against the euro than it was last year, the 30 per-cent drop in asking prices is now equal to a pound set at €1.40 to €1.45.

Speculators, rather than the domestic buyer, also realise that taking out a euro-mortgage, whether they need it or not, will put them at an advantage as the rate continues to improve.

90% OF EURO BANKS EXPECT TO INCREASE NON-RESIDENT LENDING IN 09

90% OF EURO BANKS EXPECT TO INCREASE NON-RESIDENT LENDING IN 09

International Private Finance, mortgage, Spain, France, Italy, Portugal

Some 90% of Spanish, French, Italian and Portuguese banks are set to maintain or increase the range and type of non-resident mortgage they provide in 2009, according to a survey from mortgage broker International Private Finance (IPF).

In its International Mortgage Outlook 2009 report, the company interviewed 20 lenders across the respective countries, including: BBVA, Barclays Italy/France, Deutsche Bank, BNP Paribas, GE Moneybank, Banif, Credit Lyonnais and Societe Generale; to find out what this year held for non-resident lending.

The banks said that the most popular product developments, they feel are of interest to international buyers in Spain, Portugal, France and Italy, are higher loan-to-value (LTV) mortgages, an increase in interest-only finance options and more special purpose vehicles (SPVs) for those looking to buy within a company or tax efficient structure.

“As the world’s population becomes increasingly mobile, the need for flexible and efficient ways of financing and owning assets in different geographical locations is becoming more pressing,” said Fiona Watts, managing director of International Private Finance, and author of the report.

Portuguese lenders said that in 2009, the intent to lower the deposit amount required by non-resident investors was the top on their list of priorities, while 100% of French and Italian banks plan to maintain or increase their range of mortgage products available to overseas buyers. Spanish banks, some of the most exposed to the downturn in the real estate sector, said that while some products had been downgraded, 50% expect to maintain current product levels in 2009, while 66% expect demand from international buyers to be maintained, or increase, in 2009.

If you require mortgage assistance or property help contact the Girasol Team on 44 1974 299055 or info@girasolhomes.co.uk

Business finance news - currency market news - online UK currency markets - financial news - Interactive Investor

Business finance news - currency market news - online UK currency markets - financial news - Interactive Investor

FRANKFURT (Reuters) - The European Central Bank cut its benchmark interest rate by 50 basis points to 2.0 percent on Thursday, matching its lowest ever rate, and its president said inflation risks continued to diminish as the economy weakened.

Jean-Claude Trichet said economic data and surveys since the ECB's last meeting pointed to a "further weakening of economic activity around the turn of the year, indicating the materialisation of previously identified downside risks to activity."

But he appeared to flag a further rate cut was likely in March rather than February, telling a news conference the "next important rendezvous" would be in March as the central bank would have fresh economic forecasts then.

The next meeting was only three weeks away, he said.

Girasol Homes' latest mortgage rates will benefit from this rate cut, more news to come shortly.

MORTGAGE PRODUCTS
INTERNATIONAL MORTGAGE MATRIX JANUARY 2009

COUNTRY MAX. LTV MAX TERM MINIMUM LOAN INTEREST ONLY INTEREST RATES FROM CURRENCIES AVAILABLE
ANDORRA 70% 30 YEARS €30,000 YES 5.7% €
AUSTRALIA 80% 30 YEARS £50,000 YES 6.45% AUS$ £
BULGARIA 75% 25 YEARS €40,000 YES 3.5% €
CANADA 70% 30 YEARS US$75,000 YES 4.35% CDN$
CAPE VERDE 50% 35 YEARS €50,000 YES 6% €
CARIBBEAN 70% 20 YEARS US$500,000 NO 6.5% € $ £
CYPRUS 80% 40 YEARS £20,000 YES 4.6% € $ £
CZECH REPUBLIC 80% 20 YEARS CZK200,000 NO 5.2% CZK
DUBAI 50% 15 YEARS £75,000 YES 5.09% € $ £
FRANCE 100% 30 YEARS €50,000 YES 4.95% € $ £
GERMANY 70% 30 YEARS €25,000 NO 4.09% €
GIBRALTAR 80% 40 YEARS £50,000 YES 6.64% £
GREECE 80% 25 YEARS €40,000 YES 4.3% € $ £
IRELAND 85% 25 YEARS €120,000 YES 5.9% €
ISRAEL 75% 15 YEARS $200,000 NO 5.25% € $ £
ITALY 80% 40 YEARS €42,000 YES 5.76% €
MALTA 90% 30 YEARS £20,000 YES 3.9% €
MONACO 90% 25 YEARS €50,000 YES 4.63% €
NEW ZEALAND 70% 30 YEARS £50,000 NO 8.2% NZ$
POLAND 70% 20 YEARS €40,000 NO 7.8% € $ £
PORTUGAL 80% 30 YEARS €25,000 YES 3.2% € $ £
SOUTH AFRICA 50% 20 YEARS Rand 500,000 NO 14.8% RAND
SPAIN 80% 40 YEARS €30,000 YES 4.24% € $ £
SWITZERLAND 60% 35 YEARS £150,000 YES 2.64% SW FRANC
TURKEY 75% 20 YEARS €25,000 YES 6.65% € $ £
USA SEE SEPARATE MATRIX FOR USA

Contact Nigel Salmon and Team on

01974 299055 / 07791 890445

info@girasolhomes.co.uk

http://exchangeratenews.blogspot.com Our Blog

Cheaper mortgages as the Euribor continues to fall.

Girasol Homes spots more people buying as the Euribor plummets.

Positive news is that Euribor has now plummeted to below 3%, from its high of over 5.5% in September 2008. To put this in monetary terms a 25 year repayment mortgage for 150,000 Euros would have typically cost 1,013 Euros in September. This mortgage would now typically cost 792 Euros. A saving of over 220 Euros per month. Add this to the current low interest rate environment in the UK that many of your clients may be benefiting from, and the exceptional offers that are available in the market at present, and buying a new home overseas may be more affordable than many people think.

Sample of some of the mortgage deals for Spain and Portugal

UP TO 80% OF CONTRACT PRICE – RATES FROM BELOW 4% AVAILABLE FOR NON RESIDENTS

LOOKING FOR LOW DEPOSIT SCHEME UP TO 100% OF PURCHASE PRICE (MAX. 70% OF VALUATION) MINIMUM PROPERTY VALUE €350,000. IDEAL FOR DISCOUNTED PURCHASES

INTEREST ONLY AVAILABLE FOR TERM OF MORTGAGE IDEAL FOR THOSE CLIENTS WISHING TO KEEP THEIR MONTHLY PAYMENTS DOWN LONG TERM FIXED RATE MORTGAGES FROM 2 – 25 YEARS IDEAL FOR CLIENTS WISHING TO BUDGET WITH CONFIDENCE FOREIGN CURRENCY MORTGAGE - RATES FROM 1.93% (UP TO 60%) LOWEST RATES IN THE MARKET

LIFETIME MORTGAGE FOR RETIRED CLIENTS WHO WISH TO MAKE NO MONTHLY PAYMENTS!

CASHBACK MORTGAGE IDEAL FOR THOSE REQUIRING ASSISTANCE TOWARDS FEES/FURNISHINGS LET TO BUY UP TO 100% OF CONTRACT PRICE. IDEAL FOR THOSE CLIENTS LOOKING TO MOVE WITHOUT SELLING THEIR EXISTING HOME

BUY TO LET PORTFOLIO MORTGAGE - UP TO 60% OF CONTRACT IDEAL FOR INVESTORS

Contact Nigel Salmon at Girasol Homes for more details of mortgages and properties 44 1974 299055 or www.girasolhomes.co.uk

Spain's PM sees economic recovery in late 2009 - Expatica

Spain's PM sees economic recovery in late 2009 - Expatica

Zapatero predicts the economy will begin to recover in the second half of 2009

MADRID – Spanish Prime Minister Jose Luis Rodriguez Zapatero Thursday predicted the country's slumping economy would begin to recover in the second half of 2009 after suffering a difficult period.

"We are going to go through some bad months, but there is a certain and solid recovery on the horizon," he said in an interview with the television channel Cuatro.

"In the second half (of 2009) we are going to have some data that points to a recovery.... We are going to emerge to strong from this crisis."

He also predicted inflation would drop to under 2.0 percent this year and to 1.0 percent "at the most" in 2009.

Spanish 12-month inflation plummeted to 2.4 percent in November from 3.6 percent in October, hitting its lowest rate since August 2007.

Spain's economy was until very recently one of the most dynamic in the eurozone but it began to cool in 2007 as the international credit crunch hit an already weakened real estate sector, putting an end to a decade-long property boom.

It is now on the brink of recession after gross domestic product contracted 0.2 percent in the third quarter and the slowdown has led to the loss of tens of thousands of jobs in recent months, mostly in construction and the services sector.

Zapatero earlier Thursday predicted that his government's recent 11-billion-euro stimulus package would lead to a sharp rise in job creation during the first half of 2009.

"It will be at that moment, in March or April, when we will have an intense rhythm of public works under way that will without a doubt create jobs at a considerable rate," he told parliament in a debate on the 2009 budget.

Spain's lower house passed the budget, overturning a veto in the Senate where legislators had slammed the proposal as outdated given the country's fast deteriorating economy.

[AFP / Expatica]

Mortgage Rates Slashed by Abbey, Barclays and Woolwich on 100 Mortgages

Mortgage Rates Slashed by Abbey, Barclays and Woolwich on 100 Mortgages

Interesting news as the money is finally getting through to the people who require it, I personally think that one of the banks will break rank and make a killing by being the first. Some foreign banks are already starting to try and make a move and cherry pick the best clients from a large pile.

It should be interesting.

We have just launched a Foreign Currency Mortgage with rates from 1.63% in either dollars, yen or swiss francs.

Girasol Homes Mortgage Site should be launched 3rd December 2008.

Pre register for news of our sites launch by emailing us at mortgages@girasolhomes.co.uk

BBC NEWS - Spain unveils 11bn euro stimulus

BBC NEWS | Business | Spain unveils 11bn euro stimulus



Interesting news as Spain attempts to bolster its economy like all countries in the Eurozone.

---

Mortgages however seem to be getting a little easier as long as you are a good credit worthy candidate with all the right paperwork and credit history our specialists at MHI can be confident of good results.

For the buyers benefit Girasol Homes have been given access to many more repossession and distressed sales in the Alicante, Marbella and Murcia areas of Spain. This adds to the cheap properties in the Almeria and Granada provinces of Spain already provided to the UK & Spain agency.

Girasol Homes New Mortgage site is expected to be ready at the end of next week.