MARCH 2011 |
www.opp.org.uk
BUSINESS
FUNDING FIGURES | 35
possible, but not straightforward. Currently there are no re-
mortgage options for non-residents in Bulgaria, be it to move to a better rate, or to capital raise. However there have been some
signals over recent months that the Bulgarian mortgage market may once again be opening its doors for business later on this year, which would be news warmly welcome by property agents and investors alike. David Kerns, Private Client Dealing Manager at currency specialist Moneycorp, commented: “Over the last few weeks we
have seen investor sentiment move dramatically towards the British pound.
The initial release of 4th quarter
GDP for 2010 saw a contraction of 0.5% of overall economic activity during this period, way down on even the most pessimistic prediction of no growth. The initial reaction was to send
the pound much lower, however, once the markets had had time to reflect on the fact that the extreme weather conditions during December had greatly impacted the ability to work, the market decided that this
poor showing was a one off and not a true reflection of the health of the UK’s economy. The proof in the pudding will be when the next revision of GDP is announced, with many commentators predicting an upward adjustment.
From the Eurozone we have not
encountered any major wobbles this year so far. Portugal, Spain and Italy
all managed to raise funding through bond auctions which were oversubscribed, sending a message to global investors that the search for higher yields was back on.
“The market decided that December’s poor showing was not a true refl ection of the health of the UK ecconomy”
The President of the European
Central bank, Jeane Claude Trichet, has over the last two months altered his tone when communicating his view on the current Eurozone base rate. He had previously been concerned by rising inflationary pressures and stated the ECB would
Top 10 Countries By Highest Loan To Value (LTV) Country & Position
1 Poland - Portugal 2 France 3 Spain
- Germany - India
4 Ireland - Turkey - USA 5 Italy
LTV Available
100% 100% 85% 80% 80% 80% 75% 75% 75% 70%
Monthly chart change
- - - -
2 - - - - -
European | base rates went up this month, so expect mortgages to follow suit Source: Moneycorp and OMF
remain vigilant to the causes of these pressures. However, only last week,
following the decision to leave the European rate at 1% again, his tone weakened in that he now believes this rate level to be appropriate, and that commodity driven pressures will tail off over time. The market took this as a clear message of “there will be no interest rate hikes in the near term, with the Euro giving up some of its
recent strength on the international currency mrkets. From the USA we continue to see
only a slow recovery with a slight improvement in the labour market. Growth prospects have been revised upwards, although Federal Reserve Chairman Ben Bernanke considers the US recovery to be fragile enough to endorse an economic stimulus package which will see another $600 billion made available by June 2011.”
3.69% 2.18% 1.79%
Leading Mortgage Rates By Most Popular Countries
11.50% 9.50% 4.45% 3.81% 3.41% 5.75% 2.76%
USA SPAIN
FRANCE TURKEY
CARIBBEAN GREECE
SOUTH AFRICA POLAND
BULGARIA ITALY
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