32 | FUNDING ANALYSIS WORDS |OMF & Moneycorp
BUSINESS
www.opp.org.uk | JUNE 2011
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 effects of an IMF proposal to enforce some sort of standardised international approach to mortgage lending, the fi rst signs of life coming back into the Romanian market and the ever-growing power of the booming Turkish economy.
Finance data analysis June highlights
• IMF proposes global mortgage restrictions • Romanian mortgages are back • Turkey reveals strong growth statistics
global financial stability, the most recent report put forward by the International Monetary Fund (IMF) in April this year suggests there are still some structural weaknesses and vulnerabilities in many of the world’s most important financial systems. A key area of interest within the report was the proposed introduction of limits on mortgage loan to values and debt service income ratios, in an
D
espite the ongoing economic recovery and improvements in
attempt to help control and restrict the dramatic swings of the property boom and bust cycle. Britain and other countries are believed to be considering these proposed measures as part of a “macro-prudential toolkit”, which the regulator could use to help defl ate a housing bubble before it bursts. Should such policies be introduced it will surely be fi rst-time buyers who would be hurt the most, not just because of their inability to fi nd a suitable deposit to fi nance a property, but also because higher lending charges may be more
Top 10 Countries By Enquiries Country & Position 1 USA
2 Spain 3 Turkey 4 Italy
5 France
6 Portugal 7 Ireland
8 South Africa 9 Caribbean 10 Poland
Mortgage Enquiries
15.74% 12.96% 10.48% 6.34% 6.02% 4.62% 3.70% 3.24% 2.78% 2.31%
Monthly chart change
1 1 2 3 2 2 5 2 5 -
Interest | rates in Turkey start from 4.3% variable (7.2% fi xed) on most home loans
commonly introduced on a global scale in order to provide lenders with adequate mortgage insurance. Within the report, the fi nancial structure of the USA was notably criticised because state-backed mortgage companies
there underwrite loans to make them more affordable ... a model which was deemed as “dysfunctional” by the IMF. While some of the more developed EU property markets continue to struggle it is interesting to note that
Top 10 Countries By Lowest Interest Rate Country & Position
1 Australia - Singapore - Canada - France
- Hong Kong 2 Spain 3 Italy
4 Caribbean 5 Malta
6 Portugal Initial Interest Rate
2.09% 2.09% 2.09% 2.09% 2.09% 2.30% 3.29% 3.77% 3.80% 3.87%
Monthly chart change
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1 1 -
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