18 | INDUSTRY MORTGAGE NEWS
NEWS IN BRIEF
UK mortgages flatten
The number of mortgage approvals in February remained virtually unchanged compared to the low levels of the previous month, according to new data. A report from the British Bankers’ Association showed 35,276 were approved, 122 more than in January and well below the average 41,563 level for the previous six months. However, data from the Council of Mortgage Lenders showed gross mortgage lending rose 6% in February to a value of £9.2 billion. The number of mortgages declined dramatically after stamp duty relief on cheaper homes was removed at the end of 2009. A new relief system has now been introduced for first time buyers.
First SIPP property in Cyprus
A Cypriot developer claims to be the first in the country to offer property that is compliant with UK self-invested pension plans (SIPPs). Properties at Sunset Springs Resort near Limassol, which is being built by Pure Cyprus Invest of the Petevinos Group, are available as a traditional lifestyle investment purchase through whole or shared ownership, or as an investment-only SIPP product. “We see the pension transfer product as very popular in this marketplace at the moment,” said Pam Prince, a director at Pure Cyprus Invest. “IFAs are very active at the moment and we knew Cyprus would be acceptable to SIPP investors because it recognises UK trust law.”
Agents to learn SIPP secrets
Agents hoping to cash in on the growing popularity of SIPP property sales could benefit from a series of seminars to be held around the UK. The educational sessions, held by consultancy Project Kudos and financial advisers Pacific IFA, will help agents to understand the rules surrounding investment through a Self-Invested Personal Pension (SIPP) and teach them how to recognise a potential client. “Mis-selling of SIPPs could be the next problem the industry faces because clients need to be advised by IFAs to invest through a SIPP,” said Project Kudos’ managing director, Lee Smith. The first event will be held on Tuesday, 11 May in Brentwood, Essex, with others to be held depending on interest.
MORTGAGES
Spanish mortgage plummet continues
The value of the Spanish mortgage market shrunk by over a third last year as new lending continued to fall, according to new data. Figures from the country’s National
Institute of Statistics (INE) showed the number of new loans issued in 2009 fell by 22% to 653,173 compared to the previous year, while their value decreased by 34% to €76.8 billion. Spain’s mortgage market peaked
in 2006 and declined rapidly in 2008, falling by 32% in volume and 37% in value. The latest figures show the size of the mortgage market is at its lowest level since the INE began publishing statistics in 2003. The larger drop in the mortgage
market’s value compared to the number of new loans represents the
DEPOSITS
Turkey developer says ‘pay what you like’
A Turkish developer has launched a ‘pay what you like’ deposit scheme in order to overcome buyer fears about committing savings to an off-plan purchase. Signature International is offering
tailored payment plans at its Horizon Sky resort near Bodrum that allow buyers to pay as little as 0% up front, with as much as 45% delayed for five years and no interest charged in between. Buyers can increase or decrease
their monthly payments as necessary or pay off the entire amount early. The developer is also offering ten-year finance plans at a rate of 4.9% interest, around 2% below a Turkish rate. The scheme follows the company’s
Laid back | Horizon Sky allows buyers to delay up to 45% of payment by five years
interest-free mortgage replacement plan, launched last December, which didn’t have the effect the firm had been hoping for. “The deposit was the issue because so many people didn’t have enough savings or didn’t want to use them,” said head of sales and marketing Darren Wallbank. “They also didn’t want to remortgage
their own property, as they would have done in the past, because they would have lost the very good interest rate they were on.” Signature is able to offer flexible
payment because it has no loans of its own to repay, he added. “Because we’re a strong company in a good financial position we can take on the risk.
Steep drop | The number of mortgages issued in Spain fell by 22% to 650,000 in 2009
smaller mortgages banks are agreeing to provide.
Slow-moving banks
“Banks haven’t closed up shop and if you want a 60% loan-to-value loan that’s fine,” said Heather Chambers, director of mortgage broker International Mortgage Solutions. “But
they are carrying out very high levels of due diligence and haven’t relaxed their criteria. “If you buy repossessed or bank-
funded properties they can be more flexible, and are even offering Spanish residents 100% mortgages. But these properties tend to be not as good quality or away from the tourist areas.”
www.opp.org.uk | APRIL 2010
MEXICAN BANK UPS FUNDS
Mexican development bank Sociedad Hipotecaria
Federal has revealed its plans to increase financing for homebuilders. The bank can provide up to MXN50 billion ($3.96 billion) in loan guarantees and funding for mortgages and construction loans, chief executive Javier Gavito told the Wall Street Journal.
ITALIAN LENDING RISES
Mortgage lending in Italy rose by 6.8% year-on-
year in January, according to new research. A report from UniCredit Research said exceptionally low interest rates were continuing to boost demand for housing loans, however sales levels were not yet sufficient for such a recovery to be seen as sustainable.
DUBAI MORTGAGES SURGE
The total value of mortgages approved in Dubai in
the first three months of the year increased by 75% compared to the same period last year, according to figures from the Dubai Land Department. Between January 1 and March 21 AED9.99 billion ($2.72 billion) worth of new mortgages were registered on the system.
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