AUGUST 2010 |
www.opp.org.uk WORDS | OMF & Moneycorp Mortgage data OPP has joined with OMF and Moneycorp to bring you a monthly trend report
Country & Position 1 Spain 2 USA
3 Turkey 4 France 5 Italy
6 Cyprus 7 Greece 8 Portugal 9 Bulgaria
10 Germany
Top 10 Countries By Enquiries Mortgage Enquiries 11.30% 8.10% 8.10% 7.93% 6.58% 5.90% 5.40% 3.20% 3.20% 2.53%
Over the past month many French lenders have lowered interest rates, meaning mortgages are now available from just 1.79% for foreign investors. France has always proven a popular destination amongst UK investors due to its close proximity to the UK. This is therefore great news for people who either own a French property, as it provides an opportunity for them to save money by remortgaging, or those thinking about buying a property in France, as they stand to spend a lot less on fi nancing their investment. Unlike much of the world the Indian property market has proven quite buoyant in recent times with popular destinations such as Mumbai, New Delhi, Bangalore and Goa leading the way. Off the back of this property boom an Indian bank is now prepared to offer property funding up to 85% loan to value for non-resident Indians or people of Indian origin. A move that we believe will prove very popular with Indian investors who reside in the UK. We noticed the fi rst knock on effects of the sovereign debt issue this month,
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as many Greek lenders are now starting to tighten their criteria and restrict the amount of funding available. This has meant many foreign
investors are now struggling to fi nd a lender who will fund their Greek property, as illustrated by this month’s 60% increase in mortgage enquiries for Greece.
Despite rate reductions in France and Canada this month, our position remains that property investors should take advantage of the current low rates of borrowing while they can. Adam Jordan, Personal Client Dealer at Moneycorp, says “With a recent drop in interest rates and an 85% LTV ratio available, France is looking like a good area for overseas investment. French property prices have been more resilient than in the UK during the global recession, but they did fall, so bargains are still there to be found. Further afi eld, Canada is also attracting more interest, and again it is the resilient property prices that appeal. However, investors in the UK may still be put off by an expensive Canadian
4 Dominican Republic - Turkey 5 USA
6 Spain - Cyprus - Italy
Highlights
• Interest rate reductions in France is great news for investors
• 85% lending now available in India
• Greece enquiries rise by 60% due to stricter underwriting
Top 10 Countries By Highest Loan To Value (LTV) Country & Position 1 Poland 2 Portugal 3 France - India
LTV Available 100 % 90 % 85 % 85 % 80 % 80 % 75 % 70 % 70 % 70 %
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Top 10 Countries By Lowest Interest Rate Country & Position 1 Singapore 2 Australia 3 Portugal 4 Canada - France 5 Spain
6 New Zealand 7 Italy
8 Hong Kong 9 Greece
Initial Interest Rate 1.59% 1.69% 1.74% 1.79% 1.79% 1.87% 1.89% 2.40% 2.49% 3.01%
dollar despite a signifi cant 5% gain over the last month. During the fi rst half of 2010, sterling has experienced a 10% gain against the Euro. The main focus has been on Greece, which is facing a spiralling budget defi cit and sovereign debt crisis. Portugal, Spain and Ireland have also suffered, and their credit ratings have
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been cut by one or more of the major credit rating agencies.
The UK has also been threatened with a credit downgrade, which is why the new government decided to act quickly to reduce national debt. From a currency point of view this
is positive. The concern is a double- dip recession.
BUSINESS
Developer profi le
BUSINESS Loan data report | 27
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