34 | FUNDING FIGURES WORDS |OMF & Moneycorp
BUSINESS
www.opp.org.uk |MARCH 2011
Finance data analysis
In OPP’s regular monthly look at what is happening in the international mortgage, funding and fi nancial markets, our expert partners Moneycorp and Overseas Mortgage Finder review the mortgage situation in Europe, where a rise in the key base rates is putting pressure on mortgage lenders to raise their interest rates. They also look at the Bulgarian mortgage market, which is making something of a comeback.
March highlights
• Base rate rise suggests higher interest rates will follow. • New exclusive mortgage deals now available in France. • Lenders may be poised to return to Bulgaria.
this month which implies there is mounting pressure on many mortgage lenders to raise their interest rates.
T “Base Rates” is a term used in the
market to help describe the various different pricing mechanisms used by financial institutions to lend to one another such as Euribor and LIBOR. Over the past 4 weeks Euribor
has risen a massive 10.6% to reach 1.68%, with LIBOR (EUR 12
here has been a strong increase in many of the key base rates in Europe
month) showing a similar rise of 8.2% to end up at 1.61%. With mortgage rates across
Europe staying relatively unchanged over the past 3 to 6 months, these movements will no doubt put pressure on banks to revise their fixed rate mortgage products and will immediately effect property owners whose tracker rate mortgage is directly linked to one of these base rates. Currently fixed rate mortgages
are available to non-resident buyers from a very competitive 2.60% in
Top 10 Countries By Enquiries Country & Position 1 USA
2 Spain 3 France 4 Turkey
5 Caribbean 6 Greece
7 South Africa 8 Poland 9 Bulgaria 10 Italy
Mortgage Enquiries
13.04% 11.88% 10.43% 7.25% 4.06% 3.48% 3.19% 3.15% 2.89% 2.61%
Monthly chart change
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France, 3.15% in Spain, 3.50% in Portugal and 5.05% in Turkey. So, if your clients are thinking
about buying or re-mortgaging a property, now might be the right time to lock into a decent fixed rate. Over the last year more people
have become interested in buying a holiday home with rental potential
“If your clients are thinking about buying or re- mortgaging now is the time to lock in a decent fi xed rate”
rather than just acquiring a second home purely for their own use. On the face of it, this finding is hardly surprising due to the financial commitments involved when buying a second property, as this way any rental income earned can be used to contribute towards the cost of the mortgage. In light of this, OMF has
managed to negotiate a new range of exclusive market leading mortgages for investment properties in France, benefits of which include: Interest rates from just 1.79%, a discounted arrangement fee of 0.85%, loans available for purchase, re-mortgage or capital raising, flexible repayment options, with up to 30-year loan terms available. For more details on these mortgages please either contact a member of our team, or visit the Overseas Mortgage Finder website. Bulgaria became a big
property hotspot for many UK investors between 2005 and 2008. Unfortunately for these investors Bulgaria was one of the countries to fi rst feel the effects of the credit crunch with all six of the top mortgage lenders dropping out the market almost at the same time. Since then, obtaining a mortgage to purchase a property in some areas of Bulgaria such as Sofia has been
Top 10 Countries By Lowest Interest Rate Country & Position
1 Australia - Singapore
2 New Zealand 3 Canada - France
4 Hong Kong 5 Spain
6 Germany 7 Portugal 8 Italy
Initial Interest Rate
1.59% 1.59% 1.69% 1.79% 1.79% 1.99% 2.18% 2.39% 2.41% 2.76%
Monthly chart change
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