Assetz® News - Buyers Look Overseas for Homes and Mortgages

Buyers Look Overseas for Homes and Mortgages

26th March 2008 |

While much of the UK market has reported a slow down in activity over recent months, Assetz Finance has reported a 10% increase in the number of enquiries from those looking to purchase a holiday home or even first home overseas. Established destinations such as France and Spain are still proving firm favourites with this type of purchaser.

In contrast to a number of UK lenders, who are now reviewing some of their higher value mortgages and withdrawing a number of products from the market, European lenders appear to be widening their mortgage offerings - making the prospect of buying a home overseas an increasingly attractive option for those previously deterred by the limited mortgage deals available.

Katy Hepworth, Overseas Mortgage Manager for Assetz Finance, comments:

“Since the start of the year, we have noticed a considerable increase in the number of enquiries from customers looking to buy a home in destinations such as France and Spain, either as a future retirement property, or indeed as their permanent residence.

“In fact, we have witnessed a dramatic shift in buyer profiles. Until the latter half of last year, the number of enquiries from investors, compared to those looking to buy a property where they planned to live at some point, were fairy evenly balanced. However, since the start of the year there has been a significant shift away from investors to those looking to buy a home in continental Europe, where they plan to live, by a ratio of about five to one.

“With a growing number of French and Spanish lenders now widening their offerings, buying a home overseas has become an increasingly accessible option for those looking for a change of lifestyle. While it’s important to remember that obtaining a mortgage overseas is a very different process compared to that in the UK, with the right advice and careful research, buyers can secure some excellent deals in the current market place.”

A number of French banks and building societies have recently introduced 95% and 100% mortgages and now offer deals with either very low or no set-up fee.

Assetz Finance currently has access to a range of exclusive and highly competitive mortgage deals in France and Spain, including holiday home or permanent residence:

Up to 100% loan to value available (purchasers only have to pay legal costs – typically 10% of the purchase price)
A fixed rate for the entire mortgage of 4.9%
No early repayment penalties for the entire mortgage
Heavily discounted lender arrangement fee – equivalent of roughly £500
No early repayment penalties (still very difficult to find in Spain)
No lender arrangement fee (currently unprecedented)
Discounted mortgage taxes
An interest rate that decreases as you pay off the mortgage

For more information visit: www.assetz.co.uk/finance