DECEMBER 2011 |
www.opp.org.uk
BUSINESS
FUNDING ANALYSIS | 27
of foreign investment in the country. Elsewhere, Brazil is another country which has gained much interest from property investors over the past 12 months and we have cause to believe that mortgages may soon be made available to foreign buyers even perhaps as early as the start of the new year.
David Kerns, Private Client Dealing Manager at currency specialist Moneycorp, commented: “The month of October was yet again driven by the Eurozone’s sovereign debt crisis rather than ‘good old economic data’ defi ning global growth performances.” The month started well for the single currency as German Chancellor Merkel and French President Sarkozy expressed their determination to save the Euro, with a comprehensive package of agreements to be sanctioned and then implemented following their EU summits, fi rstly in Brussels and then subsequently followed up during the gathering in Cannes, France. As has been the case for so long
now, there was much posturing, some credible ideas and promises of enormous amounts of monies supposedly to be made available, although there remains little concrete
evidence as to how the expansion to the existing European Financial Stability Facility would be achieved and who would be liable.
Greek bond holders were to take a 50% ‘haircut’ on the holdings, the EFSF would increase its fi repower to €1 trillion, and the Eurozone’s banks were to improve their capital ratios far quicker than the previously agreed Basel III agreement.
Greek Prime Minister George Papandreou, returned to Athens following the summits and subsequently undid much of this good work, by offering the Greek population the right to vote on the latest bail out terms prior to their implementation. The fall out saw the German Chancellor Merkel and the French President Sarkozy both furious and incredulous, with tremendous pressure applied from Brussels leading to the resignation of the Greek PM.
Contagion fears spread from Greece to Italy as their own enormous defi cit came under scrutiny. Talk of a two-tier Eurozone, or of Greece defaulting and possibly leaving the single currency sent shockwaves around the world. Sterling moved higher by default against the weakened Euro, whilst the
Top 10 Countries By Lowest Interest Rate Country & Position
1 Honk Kong 2 Australian - Singapore - Canada - France
3 United Kingdom 4 Portugal 5 Spain 6 Malta
Initial Interest Rate
1.85% 2.09% 2.09% 2.09% 2.09%
3.19% 3.22% 3.25% 3.28%
Monthly chart change -
1 1 1 1
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UK infl ation climbed above the 5%. The UK consumer has felt squeezed from all sides recently, with higher commodity prices denting spending power, coupled with low wage infl ation as unemployment continues to creep higher. GBP/€ briefl y spiked above €1.17 during the month, whilst the fl ight from the high-yielding commodity currencies ,as spooked investors shunned the Australian and New Zealand dollars,
saw rates climb above AS$ 1.60 and NZ$2.03 respectively. The American dollar remained the
favoured safe haven currency of choice and was in great demand at the height of the Greek referendum uncertainty, however as calm was restored, and USA’s economic performance appeared to show a slight decline in the number of unemployed, the dollar was sold with the GBP/US$ climbing from just below 1.54 to end the month above $1.61.
Top 10 Countries By Enquiries Country & Position 1 USA
2 Spain 3 Turkey
4 Portugal 5 France
6 Caribbean 7 Italy
8 Ireland
9 Germany 10 Cyprus
Mortgage Enquiries
19.79% 15.22% 7.61% 6.59% 6.09% 4.06% 4.56% 4.06% 3.55% 3.04%
Monthly chart change -
1 1 4 4 1 1 3 2 -
Top 10 Countries By Highest Loan To Value (LTV) Country & Position
1 Poland - Portugal - Spain - France 2 India
- Australia
- New Zealand - Italy
- United Kingdom 3 USA
LTV Available
100% 100% 100% 100% 80% 80% 80% 80% 80% 75%
Monthly chart change
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