By Dylan Lobo
Difficult market conditions have forced New Star to suspend redemptions on its £470 million International Property fund.
The group said the move had been prompted by withdrawals, mainly on the institutional side, which has impacted the fund's liquidity.
New Star said the suspension is designed to restore sufficient liquidity to the fund for meet redemptions once it re-opens for dealing. It said it intends to minimise the period of suspension.
However, it emphasised the importance of getting a fair value for investors when disposing of assets, and given the weak market environment, it would be difficult to estimate how long the suspension would run for.
Full Story visit CityWire
Well it pretty much confirms that property prices in spain and france especially are falling rapidly due to the fact getting a spanish mortgage or french mortgage is virtually impossible
Buy For Now
IMS Foreign Exchange
Buying Euros? Buy Euros at the Best Exchange Rate with IMSFX
Tuesday, November 25, 2008
Friday, September 12, 2008
News Update
Hi All,
Sorry i have been a little busy these days with clients needing to Buy Euros at the best Exchange rate - beging to hate the phase!!!!
But here is a update of some of the recent news storys that have been going through the mix
Oil to drop under $100 per barrel 12-09-08
the Euro fall under the previous lows 11-09-08
UK Housing Prices to fall by another 25% 10-09-08
Bank of England to consider rate cuts 09-09-08
US Dollar falls on US Mortgages Rescue Plan 08-09-08
Troubled lenders in the UK may have tapped the Bank of England's emergency funding 04-09-08
Enjoy and please come back soon
Sorry i have been a little busy these days with clients needing to Buy Euros at the best Exchange rate - beging to hate the phase!!!!
But here is a update of some of the recent news storys that have been going through the mix
Oil to drop under $100 per barrel 12-09-08
the Euro fall under the previous lows 11-09-08
UK Housing Prices to fall by another 25% 10-09-08
Bank of England to consider rate cuts 09-09-08
US Dollar falls on US Mortgages Rescue Plan 08-09-08
Troubled lenders in the UK may have tapped the Bank of England's emergency funding 04-09-08
Enjoy and please come back soon
Tuesday, August 26, 2008
More bad news for the Pound
Hi all,
the pound suffered more today as mortgage approvals fell 65% y/y in July, according to the British Bankers Association.
Holy cow!
The number is 22,448 loans, the lowest in 11 years, although up from 22,369 in June, the lowest since records began in 1997. The sterling value of mortgages fell to £3.2 billion, the lowest since 1998. The BBA says it’s premature to think about recovery. Even re-mortgage approvals fell 21% y/y. Clearly lenders are making things harder for buyers, and the government may consider reducing the transfer tax on house purchases to unclog the market.
But prices are still down, with HBOS naming 8.8% y/y for July
Read more at www.rts-forex.com
Maybe i buy a boat instead
Bye for now
IMS Foreign Exchange - Buy Euros - Best Euro Rates
the pound suffered more today as mortgage approvals fell 65% y/y in July, according to the British Bankers Association.
Holy cow!
The number is 22,448 loans, the lowest in 11 years, although up from 22,369 in June, the lowest since records began in 1997. The sterling value of mortgages fell to £3.2 billion, the lowest since 1998. The BBA says it’s premature to think about recovery. Even re-mortgage approvals fell 21% y/y. Clearly lenders are making things harder for buyers, and the government may consider reducing the transfer tax on house purchases to unclog the market.
But prices are still down, with HBOS naming 8.8% y/y for July
Read more at www.rts-forex.com
Maybe i buy a boat instead
Bye for now
IMS Foreign Exchange - Buy Euros - Best Euro Rates
Thursday, August 21, 2008
Commonwealth Bank of Australia, has lowered its fixed rate mortgages
AUSTRALIA'S largest home lender, Commonwealth Bank of Australia, has lowered its fixed rate mortgages for the second time this month but says it cannot guarantee matching a likely rate cut next month by the central bank.
Commonwealth Bank today announced a series of cuts to its fixed rate home loans just hours after rival National Australia Bank promised to pass on in full a potential 25 basis point cut by the Reserve Bank of Australia (RBA) next month.
From August 25, the Commonwealth's one-year guaranteed fixed rate home loans will fall 25 basis points from 8.94 per cent to 8.69 per cent.
Full story at News.com.au
this is good news as the property market in Australia has been suffering as the cost of a mortgage has become prohibitive to most first and second home buyers.
The Australian dollar though has been hurt by the potential fall in interest rates, which has seen the pounds to Australian dollar exchange rate rise by almost 8 percent in the last 6 weeks.
The Australian Dollar outlook is for the exchange rate to hit 2.2000 in the coming weeks although that relies heavily on no further bad news from the UK. At the moment this seems very unlikely as the UK is being battered by poor growth, banks exposure to the continuing credit crunch, potential cut in UK interest rates and falling UK house prices.
Pounds to Australian Dollars exchange rate is currently trading 2.1400
Commonwealth Bank today announced a series of cuts to its fixed rate home loans just hours after rival National Australia Bank promised to pass on in full a potential 25 basis point cut by the Reserve Bank of Australia (RBA) next month.
From August 25, the Commonwealth's one-year guaranteed fixed rate home loans will fall 25 basis points from 8.94 per cent to 8.69 per cent.
Full story at News.com.au
this is good news as the property market in Australia has been suffering as the cost of a mortgage has become prohibitive to most first and second home buyers.
The Australian dollar though has been hurt by the potential fall in interest rates, which has seen the pounds to Australian dollar exchange rate rise by almost 8 percent in the last 6 weeks.
The Australian Dollar outlook is for the exchange rate to hit 2.2000 in the coming weeks although that relies heavily on no further bad news from the UK. At the moment this seems very unlikely as the UK is being battered by poor growth, banks exposure to the continuing credit crunch, potential cut in UK interest rates and falling UK house prices.
Pounds to Australian Dollars exchange rate is currently trading 2.1400
Friday, August 15, 2008
UK Banks face escalating losses on toxic debt
Oh dear,
Looks like the mortgage market isnt going to get better any time soon as Barclays, HBOS, and other British banks may have to raise new capital to cover escalating losses on toxic debt and meet fresh needs if the economy slides into recession, according to analysts at Merrill Lynch, warning that mortgage lenders across the region may face another $120bn in write-downs.
Bye for now
Buy Euros - Best Euro Rates
Looks like the mortgage market isnt going to get better any time soon as Barclays, HBOS, and other British banks may have to raise new capital to cover escalating losses on toxic debt and meet fresh needs if the economy slides into recession, according to analysts at Merrill Lynch, warning that mortgage lenders across the region may face another $120bn in write-downs.
Bye for now
Buy Euros - Best Euro Rates
Thursday, August 14, 2008
Australian Banks Should Cut Interest Rates
Hi All,
A lot of noise is coming today from the Reserve Bank of Australia about Australian Interest Rates. The central bank said that it was in the interest of the country's retail banks to lower lending rates when the official cash rate is lowered.
The comments were made at a parliament meeting between lawmakers and the Deputy Governor of the Reserve Bank of Australia (RBA) Ric Battelino and Assistant Governor Philip Lowe.
This is response to the Australian Banks stating that mortgage rates need to raise due to the cost of funding.
Personally i would rather sell something for £1.10 and make £0.10 than sell something for £1.20 and not sell it. Banks need to understand that times are tough and unless that want people to default they are better off cutting rates and making life easier for all.
Than maybe I can finally sell my House!
Bye For Now
IMS Foreign Exchange
A lot of noise is coming today from the Reserve Bank of Australia about Australian Interest Rates. The central bank said that it was in the interest of the country's retail banks to lower lending rates when the official cash rate is lowered.
The comments were made at a parliament meeting between lawmakers and the Deputy Governor of the Reserve Bank of Australia (RBA) Ric Battelino and Assistant Governor Philip Lowe.
This is response to the Australian Banks stating that mortgage rates need to raise due to the cost of funding.
Personally i would rather sell something for £1.10 and make £0.10 than sell something for £1.20 and not sell it. Banks need to understand that times are tough and unless that want people to default they are better off cutting rates and making life easier for all.
Than maybe I can finally sell my House!
Bye For Now
IMS Foreign Exchange
Tuesday, August 12, 2008
Spanish Banks feel the Housing Market Crash
Spanish banks could be next in line to feel the global financial crunch, the WSJ reports.
They say that with Spanish housing market bust taking a toll on Spanish builders, Spanish homeowners and the broader economy, the outlook is dimming, particularly for Spain's system of local savings banks, which generate roughly half of the country's lending and deposit-taking.
Bye For Now
Best Euro Exchange rates when you need to Buy Euros
They say that with Spanish housing market bust taking a toll on Spanish builders, Spanish homeowners and the broader economy, the outlook is dimming, particularly for Spain's system of local savings banks, which generate roughly half of the country's lending and deposit-taking.
Bye For Now
Best Euro Exchange rates when you need to Buy Euros
Tuesday, August 5, 2008
Australian Banks Gobble Mortgage Loans Pie
Australian Banks Gooble Mortgage Loans Pie
By Alex Tilbury August 04, 2008 08:39am
Mortgage Calculator
Australian Mortgage Customers be left at the mercy of the big banks as the only remaining mortgage lenders because the residential mortgage-backed security market is in danger of collapsing.
Securitisation has helped deliver cheaper home loans and a wider choice of mortgage products over the last two decades. But as non-bank lenders leave the market, the competitive pressures that have kept mortgage rates low may also disappear.
"The RMBS market is dying on the vine,'' says Greg Medcraft, chief executive of the Australian Securitisation Forum.
"The RMBS market has been an important driver of competition and innovation in the mortgage market.'' Confidence among institutional lenders, who buy the RMBS bonds that fund the mortgages that hundreds of thousands of Australians use to buy their homes, is so low that only $1.9 billion in RMBS bonds were bought in the first six months of this year compared with $47 billion during the same period last year.
This low volume of housing bonds issuance is transforming the mortgage market as non-bank lenders get crowded out by the big banks and evaporating competition.
Mr Medcraft says the five largest banks have increased their home mortgage market share dramatically in recent months.
After steadily falling from 65 to 58 per cent between 2004 and 2007, the RMBS drought has seen banks reclaim 10 per cent of the market, returning them to the glory days when they dominated it. Non-bank lenders entering the home mortgages market saw spreads, the gap between actual mortgage rates and the official Reserve Bank rate, drop two-thirds from nearly 5 per cent to now less than 2 per cent.
If you are looking for Mortgages in Australia contact IMS Foreign Exchange
Pounds to Australian Dollars currently 2.1200
By Alex Tilbury August 04, 2008 08:39am
Mortgage Calculator
Australian Mortgage Customers be left at the mercy of the big banks as the only remaining mortgage lenders because the residential mortgage-backed security market is in danger of collapsing.
Securitisation has helped deliver cheaper home loans and a wider choice of mortgage products over the last two decades. But as non-bank lenders leave the market, the competitive pressures that have kept mortgage rates low may also disappear.
"The RMBS market is dying on the vine,'' says Greg Medcraft, chief executive of the Australian Securitisation Forum.
"The RMBS market has been an important driver of competition and innovation in the mortgage market.'' Confidence among institutional lenders, who buy the RMBS bonds that fund the mortgages that hundreds of thousands of Australians use to buy their homes, is so low that only $1.9 billion in RMBS bonds were bought in the first six months of this year compared with $47 billion during the same period last year.
This low volume of housing bonds issuance is transforming the mortgage market as non-bank lenders get crowded out by the big banks and evaporating competition.
Mr Medcraft says the five largest banks have increased their home mortgage market share dramatically in recent months.
After steadily falling from 65 to 58 per cent between 2004 and 2007, the RMBS drought has seen banks reclaim 10 per cent of the market, returning them to the glory days when they dominated it. Non-bank lenders entering the home mortgages market saw spreads, the gap between actual mortgage rates and the official Reserve Bank rate, drop two-thirds from nearly 5 per cent to now less than 2 per cent.
If you are looking for Mortgages in Australia contact IMS Foreign Exchange
Pounds to Australian Dollars currently 2.1200
Monday, August 4, 2008
Spanish property prices have fallen by 30% say estate agents
Spanish property prices have fallen by 30% say estate agents
Spanish property prices have fallen by 30% since Spain’s economic downturn began last year, says Santiago Baena, president of the API real estate agents association (Colegios Oficiales de Agentes de la Propiedad Inmobiliaria).
Speaking at a recent conference on Spain’s property crisis, and reported in the Spanish press, Baena said that the adjustment in Spanish property prices currently underway is brutal, and that the situation this year is radically different to last year, when the sector was already absolutely paralysed.
Spain’s construction sector won’t stabilise and start to recover until 2009, forecasts Baena.
Baena also pointed out that many of the sector’s problems are due to a lack of regulation in the sector, and called for more legal protection for consumers. He recommends stronger legislation and the introduction of professional qualifications for real estate brokers. According to Baena, minimum rules of the game are needed to prevent a market of the law of the jungle in which anyone can operate without any code of conduct or oversight.
He also called for a reform of local government financing, so that town councils don’t have to rely on the construction sector for their finances. Baena described the present situation as shameful, and called for new legislation.
Baena then had a go at banks, who he said lent with enormous generosity in the good times, but whoSpanish Banks now won’t lend to anyone. He accused them of doing a disappearing act when the going gets tough.
Despite everything, Baena argues that now is a good time to buy property in Spain.
Read More at Spanish Property Insight
For the Best Exchange Rate when Buying Euroscontact IMS Foreign Exchange
Spanish property prices have fallen by 30% since Spain’s economic downturn began last year, says Santiago Baena, president of the API real estate agents association (Colegios Oficiales de Agentes de la Propiedad Inmobiliaria).
Speaking at a recent conference on Spain’s property crisis, and reported in the Spanish press, Baena said that the adjustment in Spanish property prices currently underway is brutal, and that the situation this year is radically different to last year, when the sector was already absolutely paralysed.
Spain’s construction sector won’t stabilise and start to recover until 2009, forecasts Baena.
Baena also pointed out that many of the sector’s problems are due to a lack of regulation in the sector, and called for more legal protection for consumers. He recommends stronger legislation and the introduction of professional qualifications for real estate brokers. According to Baena, minimum rules of the game are needed to prevent a market of the law of the jungle in which anyone can operate without any code of conduct or oversight.
He also called for a reform of local government financing, so that town councils don’t have to rely on the construction sector for their finances. Baena described the present situation as shameful, and called for new legislation.
Baena then had a go at banks, who he said lent with enormous generosity in the good times, but whoSpanish Banks now won’t lend to anyone. He accused them of doing a disappearing act when the going gets tough.
Despite everything, Baena argues that now is a good time to buy property in Spain.
Read More at Spanish Property Insight
For the Best Exchange Rate when Buying Euroscontact IMS Foreign Exchange
Tuesday, July 29, 2008
Crosby report on mortgage market
I dont normally like to cut and paste story's but this is a biggie
LONDON (Reuters) - An interim report by former HBOS chief executive Sir James Crosby on ways to revive Britain's mortgage markets will be published on Tuesday, the Treasury said on Monday.
The report was commissioned by the government in April as it became clear that a lack of mortgage finance was driving down house prices with worrying speed.
"Crosby will publish his interim report analysing the functioning of the secondary mortgage market on Tuesday, with his final recommendations to the Chancellor due in time for the Pre-Budget Report," said a Treasury spokesman.
The spokesman declined to comment on newspaper reports suggesting the government will back an ambitious scheme allowing banks to swap new mortgage debt for government securities.
A Special Liquidity Scheme unveiled by the Bank of England in April allowed banks to swap hard-to-shift mortgage assets for government securities only if the mortgage loans were on their balance sheets at the end of 2007.
The central bank's scheme did succeed for a while in shoring up confidence in the sector, but banking experts say more needs to be done.
The securitisation markets, where up to 40 percent of mortgages were funded last year, remains shut and the impact of the mortgage market strains on the housing market is becoming more apparent by the day.
Figures from the British Bankers' Association show the number of mortgages approved for house purchase slumped by more than two thirds in June from a year ago to hit a fresh record low.
Tuesday's interim report from Crosby's team is not expected to contain concrete proposals. Those will be left for the final report this autumn.
Rob Thomas, senior policy adviser at the Council of Mortgage Lenders, urged the government not to delay any plans that might help.
"The Treasury has given us no indication of their plans but time is of the essence. There is no logic in waiting," he said.
Pounds to Euros currently 1.2700
Pounds to US Dollars currently 1.9789
LONDON (Reuters) - An interim report by former HBOS chief executive Sir James Crosby on ways to revive Britain's mortgage markets will be published on Tuesday, the Treasury said on Monday.
The report was commissioned by the government in April as it became clear that a lack of mortgage finance was driving down house prices with worrying speed.
"Crosby will publish his interim report analysing the functioning of the secondary mortgage market on Tuesday, with his final recommendations to the Chancellor due in time for the Pre-Budget Report," said a Treasury spokesman.
The spokesman declined to comment on newspaper reports suggesting the government will back an ambitious scheme allowing banks to swap new mortgage debt for government securities.
A Special Liquidity Scheme unveiled by the Bank of England in April allowed banks to swap hard-to-shift mortgage assets for government securities only if the mortgage loans were on their balance sheets at the end of 2007.
The central bank's scheme did succeed for a while in shoring up confidence in the sector, but banking experts say more needs to be done.
The securitisation markets, where up to 40 percent of mortgages were funded last year, remains shut and the impact of the mortgage market strains on the housing market is becoming more apparent by the day.
Figures from the British Bankers' Association show the number of mortgages approved for house purchase slumped by more than two thirds in June from a year ago to hit a fresh record low.
Tuesday's interim report from Crosby's team is not expected to contain concrete proposals. Those will be left for the final report this autumn.
Rob Thomas, senior policy adviser at the Council of Mortgage Lenders, urged the government not to delay any plans that might help.
"The Treasury has given us no indication of their plans but time is of the essence. There is no logic in waiting," he said.
Pounds to Euros currently 1.2700
Pounds to US Dollars currently 1.9789
Tuesday, July 22, 2008
Moroccan Mortgages
Moroccan Mortgage Information
Buying a home or an investment property in Morocco is growing in popularity and in the last few years we have seen increasing demand for mortgages to purchase a Moroccan home. The ability to borrow money to do this however has not quite kept pace with the demand from Northern Europeans for cutting edge mortgage products. That said there is a mortgage marker available for non residents of Morocco.
Moroccan Mortgage Products
Mortgage lending in Morocco is at variable rate and on a repayment basis with very limited fixed rates available. Moroccan mortgages are linked to the TAUX which means that the rate of borrowing against which you pay interest will be reviewed twice yearly.
Moroccan Mortgages Loan to Values
Moroccan mortgage loans are up to 70% for non-residents of Morocco. The loan percentage is linked to the purchase price of the property.
Morocccan Mortgage Terms
Moroccan mortgage terms range from 12 to 25 years, are age and lender related. It is usual to have repaid the mortgage by age 70.
Moroccan Mortgages Costs
All Moroccan banks charge an arrangement fee for lending you the money, this ranges from 1% upwards. Other costs include mortgage taxes and some of the deed costs. You should allow in the region of 5% of the price of your house to cover your costs in Morocco.l. You should contract an independent Moroccan lawyer, not one recommended by your agent or developer, to help with the purchase and make sure you are made fully aware of the provision of costs for completion by your lawyer.
Buy Moroccan Dirhams Currency
Your Moroccan mortgage will be repayable monthly in Dirhams. To buy Dirhams at the best rates click here.
Moroccan Mortgages Underwriting
Mortgages in Morocco are only granted on a full documentation and status basis. Moroccan banks assess the lending against a percentage of your disposable income unlike UK banks that tend towards lending you a multiplication of your annual income.
Hints & Tips
1. Check your budget and make extensive mortgage enquiries before even travelling specifically to view Moroccan property. It would be a wasted trip and quite heartbreaking to see your dream home and discover you cannot borrow the amount you need to buy it.
2. Always use an independent lawyer to act for you. Do not go on the recommendation of your agent, developer or the seller.
3. Be prepared for hiccups along the way. Moroccan law differs from that which you are used to. The Moroccans use a Notary system that is long, drawn out and expensive.
4. Do not sign anything until your lawyer has checked the paperwork and your finances are in place. You could end up losing a deposit.
5. Do not get drawn into financial structures such as using companies and offshore havens to purchase the house until you have thoroughly understood the implications of doing so.
Buying a home or an investment property in Morocco is growing in popularity and in the last few years we have seen increasing demand for mortgages to purchase a Moroccan home. The ability to borrow money to do this however has not quite kept pace with the demand from Northern Europeans for cutting edge mortgage products. That said there is a mortgage marker available for non residents of Morocco.
Moroccan Mortgage Products
Mortgage lending in Morocco is at variable rate and on a repayment basis with very limited fixed rates available. Moroccan mortgages are linked to the TAUX which means that the rate of borrowing against which you pay interest will be reviewed twice yearly.
Moroccan Mortgages Loan to Values
Moroccan mortgage loans are up to 70% for non-residents of Morocco. The loan percentage is linked to the purchase price of the property.
Morocccan Mortgage Terms
Moroccan mortgage terms range from 12 to 25 years, are age and lender related. It is usual to have repaid the mortgage by age 70.
Moroccan Mortgages Costs
All Moroccan banks charge an arrangement fee for lending you the money, this ranges from 1% upwards. Other costs include mortgage taxes and some of the deed costs. You should allow in the region of 5% of the price of your house to cover your costs in Morocco.l. You should contract an independent Moroccan lawyer, not one recommended by your agent or developer, to help with the purchase and make sure you are made fully aware of the provision of costs for completion by your lawyer.
Buy Moroccan Dirhams Currency
Your Moroccan mortgage will be repayable monthly in Dirhams. To buy Dirhams at the best rates click here.
Moroccan Mortgages Underwriting
Mortgages in Morocco are only granted on a full documentation and status basis. Moroccan banks assess the lending against a percentage of your disposable income unlike UK banks that tend towards lending you a multiplication of your annual income.
Hints & Tips
1. Check your budget and make extensive mortgage enquiries before even travelling specifically to view Moroccan property. It would be a wasted trip and quite heartbreaking to see your dream home and discover you cannot borrow the amount you need to buy it.
2. Always use an independent lawyer to act for you. Do not go on the recommendation of your agent, developer or the seller.
3. Be prepared for hiccups along the way. Moroccan law differs from that which you are used to. The Moroccans use a Notary system that is long, drawn out and expensive.
4. Do not sign anything until your lawyer has checked the paperwork and your finances are in place. You could end up losing a deposit.
5. Do not get drawn into financial structures such as using companies and offshore havens to purchase the house until you have thoroughly understood the implications of doing so.
Cape Verde Mortgages
Cape Verde Mortgage Information
Buying a home or an investment property in Cape Verde has soared in popularity in the last few years. The ability to borrow money to do this however has not quite kept pace with the demand from Northern Europeans for cutting edge mortgage products. That said there is a wide and growing range of mortgage products available for non residents of Cape Verde.
Cape Verde Mortgage Products
Mortgage lending in Cape Verde is at variable rate and on a repayment basis or interest only basis. Cape Verde mortgages are generally linked to the euribor (European inter bank offered rate).
Cape Verde Mortgages Loan to Values
Cape Verde mortgage loan to values are up to 75% for non-residents of Cape Verde. The loan percentage is linked to the mortgage security valuation the lender assesses upon the property you choose or the price you are buying it for, whichever is the lower.
Cape Verde Mortgage Terms
Cape Verde mortgage terms range from 5 to 35 years, are age and lender related. It is usual to have repaid the mortgage by age 75.
Cape Verde Mortgage Costs
All Cape Verde banks charge an arrangement fee for lending you the money. Other costs including mortgage taxes and deed costs. You should allow in the region of 6% to 7% of the purchase price of your house to cover your costs in Cape Verde. You should contract an independent lawyer, not one recommended by your agent or developer, to help with the purchase and make sure you are made fully aware of the provision of costs for completion by your lawyer.
Buy Euro Currency
Your Cape Verde mortgage will be repayable monthly in Euros. To buy Euros at the best rates click here.
Cape Verde Mortgage Underwriting
Mortgages in Cape Verde are only granted on a full documentation and status basis. Cape Verde banks assess the lending against a percentage of your disposable income unlike UK banks that tend towards lending you a multiplication of your annual income.
Hints & Tips
1. Check your budget and make extensive mortgage enquiries before even travelling specifically to view Cape Verde property. It would be a wasted trip and quite heartbreaking to see your dream home and discover you cannot borrow the amount you need to buy it.
2. Always use an independent lawyer to act for you. Do not go on the recommendation of your agent, developer or the seller.
3. Be prepared for hiccups along the way. Cape Verde law differs from that which you are used. They use a Notary system that is long, drawn out and expensive.
4. Do not sign anything until your lawyer has checked the paperwork and your finances are in place. You could end up losing a deposit.
5. Do not get drawn into financial structures such as using companies and offshore havens to purchase the house until you have thoroughly understood the implications of doing so.
Buying a home or an investment property in Cape Verde has soared in popularity in the last few years. The ability to borrow money to do this however has not quite kept pace with the demand from Northern Europeans for cutting edge mortgage products. That said there is a wide and growing range of mortgage products available for non residents of Cape Verde.
Cape Verde Mortgage Products
Mortgage lending in Cape Verde is at variable rate and on a repayment basis or interest only basis. Cape Verde mortgages are generally linked to the euribor (European inter bank offered rate).
Cape Verde Mortgages Loan to Values
Cape Verde mortgage loan to values are up to 75% for non-residents of Cape Verde. The loan percentage is linked to the mortgage security valuation the lender assesses upon the property you choose or the price you are buying it for, whichever is the lower.
Cape Verde Mortgage Terms
Cape Verde mortgage terms range from 5 to 35 years, are age and lender related. It is usual to have repaid the mortgage by age 75.
Cape Verde Mortgage Costs
All Cape Verde banks charge an arrangement fee for lending you the money. Other costs including mortgage taxes and deed costs. You should allow in the region of 6% to 7% of the purchase price of your house to cover your costs in Cape Verde. You should contract an independent lawyer, not one recommended by your agent or developer, to help with the purchase and make sure you are made fully aware of the provision of costs for completion by your lawyer.
Buy Euro Currency
Your Cape Verde mortgage will be repayable monthly in Euros. To buy Euros at the best rates click here.
Cape Verde Mortgage Underwriting
Mortgages in Cape Verde are only granted on a full documentation and status basis. Cape Verde banks assess the lending against a percentage of your disposable income unlike UK banks that tend towards lending you a multiplication of your annual income.
Hints & Tips
1. Check your budget and make extensive mortgage enquiries before even travelling specifically to view Cape Verde property. It would be a wasted trip and quite heartbreaking to see your dream home and discover you cannot borrow the amount you need to buy it.
2. Always use an independent lawyer to act for you. Do not go on the recommendation of your agent, developer or the seller.
3. Be prepared for hiccups along the way. Cape Verde law differs from that which you are used. They use a Notary system that is long, drawn out and expensive.
4. Do not sign anything until your lawyer has checked the paperwork and your finances are in place. You could end up losing a deposit.
5. Do not get drawn into financial structures such as using companies and offshore havens to purchase the house until you have thoroughly understood the implications of doing so.
Spanish Mortgages
Spanish Mortgage Information
Buying a home or an investment property in Spain has soared in popularity in the last 10 years. The ability to borrow money to do this however has not quite kept pace with the demand from Northern Europeans for cutting edge mortgage products. That said there is a wide and growing range of mortgage products available for non residents of Spain.
Spanish Mortgage Products
Mortgage lending in Spain can be either at fixed or variable rate and on a repayment basis or interest only basis. Spanish mortgages are generally linked to the yearly euribor (European inter bank offered rate) which means that the rate of borrowing against which you pay interest will be reviewed yearly. Through Gibraltarian and Isle of Man banks we can provide mortgages in sterling for Spanish homes.
Loan to Values
Spanish mortgage loan to values are up to 80% for non-residents of Spain. The loan percentage is linked to the mortgage security valuation the lender assesses upon the property you choose not the price you are buying it for.
Equity Release and Re-mortgaging in Spain
Not all Spanish banks will consider allowing you to either remortgage once you have started your mortgage contract with them (you can always consider changing banks however) and releasing equity is again restricted to certain specialised lenders. Remortgageing and releasing equity can be a costly process and should only be done under advisement.
The Bank of Spain controls the activities of lenders in Spain and releasing further funds or changing the terms will incur further tax; bank and notary costs. Under Spanish legislation it may be prudent to mortgage to the maximum you require and include future needs to avoid the enhanced costs later on.
Spanish Mortgage Terms
Spanish mortgage terms range from 5 to 40 years, are age and lender related. It is usual to have repaid the mortgage by age 70 but this can be extended to 80 with some lenders.
Mortgage Costs
All Spanish banks charge an arrangement fee for lending you the money, this ranges from 1% to 2% typically and is payable at the Notary at completion. Other costs including mortgage taxes and some of the deed costs are deducted from your mortgage advance. It is rarely possible to add your costs to the Spanish mortgage unless your valuation level allows you to. You should allow in the region of 12% to 13% of the price of your house to cover your costs in Spain in full. You should contract an independent Spanish lawyer, not one recommended by your agent or developer, to help with the purchase and make sure you are made fully aware of the provision of costs for completion by your lawyer.
Buy Currency
Your Spanish mortgage will be repayable monthly in Euros. To buy Euros at the best rates click here.
Underwriting
Most mortgages in Spain are only granted on a full documentation and status basis however there is limited access to self certified lending. You should not expect the most favourable terms for this type of lending. Spanish banks assess the lending against a percentage of your disposable income unlike UK banks that tend towards lending you a multiplication of your annual income.
Hints & Tips
1. Check your budget and make extensive mortgage enquiries before even travelling specifically to view Spanish property. It would be a wasted trip and quite heartbreaking to see your dream home and discover you cannot borrow the amount you need to buy it.
2. Always use an independent Spanish lawyer to act for you. Do not go on the recommendation of your agent, developer or the seller.
3. Be prepared for hiccups along the way. Spanish law differs from that which you are used to. The Spanish use a Notary system that is long, drawn out and expensive.
4. Do not sign anything until your lawyer has checked the paperwork and your finances are in place. You could end up losing a deposit.
5. Do not get drawn into financial structures such as using companies and offshore havens to purchase the house until you have thoroughly understood the implications of doing so.
Buying a home or an investment property in Spain has soared in popularity in the last 10 years. The ability to borrow money to do this however has not quite kept pace with the demand from Northern Europeans for cutting edge mortgage products. That said there is a wide and growing range of mortgage products available for non residents of Spain.
Spanish Mortgage Products
Mortgage lending in Spain can be either at fixed or variable rate and on a repayment basis or interest only basis. Spanish mortgages are generally linked to the yearly euribor (European inter bank offered rate) which means that the rate of borrowing against which you pay interest will be reviewed yearly. Through Gibraltarian and Isle of Man banks we can provide mortgages in sterling for Spanish homes.
Loan to Values
Spanish mortgage loan to values are up to 80% for non-residents of Spain. The loan percentage is linked to the mortgage security valuation the lender assesses upon the property you choose not the price you are buying it for.
Equity Release and Re-mortgaging in Spain
Not all Spanish banks will consider allowing you to either remortgage once you have started your mortgage contract with them (you can always consider changing banks however) and releasing equity is again restricted to certain specialised lenders. Remortgageing and releasing equity can be a costly process and should only be done under advisement.
The Bank of Spain controls the activities of lenders in Spain and releasing further funds or changing the terms will incur further tax; bank and notary costs. Under Spanish legislation it may be prudent to mortgage to the maximum you require and include future needs to avoid the enhanced costs later on.
Spanish Mortgage Terms
Spanish mortgage terms range from 5 to 40 years, are age and lender related. It is usual to have repaid the mortgage by age 70 but this can be extended to 80 with some lenders.
Mortgage Costs
All Spanish banks charge an arrangement fee for lending you the money, this ranges from 1% to 2% typically and is payable at the Notary at completion. Other costs including mortgage taxes and some of the deed costs are deducted from your mortgage advance. It is rarely possible to add your costs to the Spanish mortgage unless your valuation level allows you to. You should allow in the region of 12% to 13% of the price of your house to cover your costs in Spain in full. You should contract an independent Spanish lawyer, not one recommended by your agent or developer, to help with the purchase and make sure you are made fully aware of the provision of costs for completion by your lawyer.
Buy Currency
Your Spanish mortgage will be repayable monthly in Euros. To buy Euros at the best rates click here.
Underwriting
Most mortgages in Spain are only granted on a full documentation and status basis however there is limited access to self certified lending. You should not expect the most favourable terms for this type of lending. Spanish banks assess the lending against a percentage of your disposable income unlike UK banks that tend towards lending you a multiplication of your annual income.
Hints & Tips
1. Check your budget and make extensive mortgage enquiries before even travelling specifically to view Spanish property. It would be a wasted trip and quite heartbreaking to see your dream home and discover you cannot borrow the amount you need to buy it.
2. Always use an independent Spanish lawyer to act for you. Do not go on the recommendation of your agent, developer or the seller.
3. Be prepared for hiccups along the way. Spanish law differs from that which you are used to. The Spanish use a Notary system that is long, drawn out and expensive.
4. Do not sign anything until your lawyer has checked the paperwork and your finances are in place. You could end up losing a deposit.
5. Do not get drawn into financial structures such as using companies and offshore havens to purchase the house until you have thoroughly understood the implications of doing so.
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