CURRENT MORTGAGE RATES AND CONDITIONS FOR INTERNATIONAL OVERSEAS BUYERS

The conditions for buying property in Overseas remain very attractive to clients, with continued low interest rates and in many cases favourable exchange rates.
We offer a wide range of mortgage solutions for non-resident and resident investors with flexible, competitive terms, pricing and repayment options.
Overall, the average spread above the Euribor has reduced from 3% to 1.35% in the last 3 or 4 years.
A 5 year fixed interest rate starts at 1.75% in some countries, depending on the personal financial circumstances of the mortgage applicant. The opportunity to lock in rates at such low levels for such long periods remains extremely attractive for foreign investors.

                                                                                                                                                    Source: ECB

Most of our customers could pay the purchase of their property overseas with cash, but due to these low interest rates, the majority of them prefer to leverage their investment, as they can obtain higher returns for their capital in other investments.
Lenders have increased their lending appetite over the last 2 years, but they do require that all mortgage applications be fully and properly documented.
At Financial North, we aim to reduce the paperwork whenever possible and to mitigate the language burden, so you can enjoy peace of mind with a clear and transparent finance application process.
For some customers the best option to obtain a competitive mortgage is to establish a private banking relationship in the course of the purchase of a high value property overseas.
The essentials of a private banking relationship are that the client deposit a significant amount of financial assets to the bank such as cash, bond or equities portfolio. The private banker will then agree a strategy to manage this portfolio to generate a return to match the customer’s appetite for risk.
Please do not hesitate to contact us at enquiries@financialnorth.com if you would like to discuss your best finance options with us.

Kind regards,

Alberto Goldar
Managing Director

FINANCIAL NORTH – Q1 2016 Newsletter

The conditions for buying property internationally remain very attractive to clients with continued low prices and in many cases favourable exchange rates.

The Euribor has never been lower, 12 Months Euribor base rate is 0.042% and banks have reduced their interest rate margins to the extent where rates are now lower than a year ago 

                          

A 15 years fixed interest rate starts at 2.5% in some countries, depending on the personal financial circumstances of the mortgage applicant. The opportunity to lock in rates at such low levels for such long periods remains extremely attractive for foreign investors.

Variable margins on international repayment mortgages are still in the region of Euribor + 1.5% to 2,5%.

As a brief summary of the mortgages available in those countries with higher demand:

COUNTRY	MAXIMUM % LTV	MIN. FUNDS AVAILABLE FOR PURCHASE *	COMMENTS
SPAIN	70%	44 % * of purchase price	Min. mortgage €150,000. Mortgage transfer to another lender allowed. No equity release or buy to let.
PORTUGAL	80%	32 % * of purchase price	Minimum mortgage €200,000. Mortgage transfer or buy to let allowed. No equity release.
USA	70%	40% * of purchase price	Minimum mortgage €300,000 Different mortgage products available per state.
FRANCE	85%	25 % * of purchase price	Minimum mortgage €250,000. Mortgage transfer, buy to let and equity release allowed.
ITALY	80%	35 % * of purchase price	Minimum mortgage €300,000. No mortgage transfer, equity release or buy to let available.

*These are estimates as it depends of several factors; local taxes, customer’s financial profile, etc.

For customers with their main property in the UK and sufficient positive equity, we can assist them refinancing mortgage to release equity up to 80% LTV, in order to have sufficient funds for the purchase of their properties overseas*

For the next months, we expect international mortgage rates should stay more or less as they are, with excellent products on offer to most non-residents.

2015 has been described in some corners as the year of the strong sterling, as the British currency zipped up against the euro from a rate of 1.28 on the 1st January, hitting a rate of 1.44 in July and close to this again in November.

2016 so far, on the other hand, has already shown an enormous switch in the £/€ exchange rate and being more stable for the USD/€. Sterling had begun weakening in December 2015, as a result of positive sentiment surrounding the European Central Bank (ECB), but experts could not predict the speed at which the British currency would then devalue in January.

Please do not hesitate to contact Financial North if you require further information on how we can assist you on your property purchase overseas at enquiries@financialnorth.com or give us a call at + 44 (0)20 3287 2800.

Kind regards,

Alberto Goldar
Managing Director

HOW TO AVOID THE EXPECTED BAD NEWS THAT WILL AFFECT YOUR POCKET?

The Euribor, the European equivalent for Libor, is at its historical minimum rate and it is likely to go higher in the near future. In this event, it would have a direct impact on your mortgage payments and on your economy.

Either if you currently have an Spanish mortgage with variable interest rate or you or one of your customers is going to apply for a new one, we can offer the following limited promotion for residents up to 80% LTV and non-residents up to 75% LTV:

• Fixed interest rate at 2,5% for a maximum period of 15 years
• Fixed interest rate at 2,75% for a maximum period of 20 years
• Fixed interest rate at 3% for a maximum period of 25 years.

The maximum mortgage term is conditioned on the age of the main applicant, as it must be paid off before he/she reaches 75 years of age. This offer is subject to final approval of the lender’s credit department.

Please do not hesitate to contact us at enquiries@financialnorth.com or at 020 3287 2800 if you would like further information on how you can lock your mortgage payments in the future.

Kind regards,

Alberto Goldar
Managing Director

FUNDING SOURCES UP TO 100% LTV FOR HNW CLIENTS WITH PREMIUM PROPETIES IN SPAIN AND FRANCE

These are available on properties in Spain and France:

• Minimum loan - € 1 million

• Minimum property value - € 1 million

• Maximum Loan to Value - 100% LTV – 50% LTV would be guaranteed by the property (mortgage) the additional 50% would be guaranteed by borrower’s financial assets deposited with and pledged with the lender (charge taken).

• Minimum Assets Under Management with the chosen lender: € 1,000,000 (pledged & cannot be withdrawn until the 60% of the loan is paid off)

• Interest rates from 1.5% margin over 12 month EURIBOR

• Interest only period: Up to 10 years

• Maximum 30 year term on an Interest and capital repayment basis. No age limit or restrictions.

• Property may be owned by an SPV based in the UK, France or Spain, but the beneficial owner must be the one establishing the banking relationship.

• Appraisal estimated cost 0.15%

• Early redemption fee from 0,25 %

Above all the client must demonstrate that they have a private banking profile and be willing to develop their relationship with the bank.

We also provide mortgages from 100,000€. Please give us a call at +44 (0)20 3287 2800 for further information, or you can send us a brief explanation of your finance requirements to enquiries@financialnorth.com

Wishing you a very successful summer time!


Kind regards,


Alberto Goldar
Managing Director

MORTGAGES FOR NON-RESIDENTS UP TO 70% LTV

We have included in our mortgages panel a new lender that offers a highly competitive mortgage terms to acquire properties in Spain.

The conditions are:

• Interest rate: Euribor + 1.60%
• No arrangement fee
• No mortgage floor
• Up to 70% of the valuation
• Term up to 25 years

In order to qualify for the best interest rate the lender requires:

• Your need to have a net income after taxes above 2,000 €
• Life and home insurance with the lender
• Use of credit card with the lender more than 12 times a year.
• Pension plan with annual contribution over 600€
• Salary paid into your lenders bank account.

If you do not meet all this criteria, the interest rate can go up to Euribor + 2.20%

Please do not hesitate to call us at +44 (0)20 3287 2800 for further information, or you can send us a brief explanation of your finance requirements to enquiries@financialnorth.com

EVEN BETTER FINANCE CONDITIONS

Either for investment or for your own leisure, it is probably the best time, for many years, to invest in a property in Spain.

Property prices are still lower than 2007 and currency exchange rates are favourable for many international customers.

Additionally, Spanish lenders are becoming more flexible when approving mortgages to non-resident buyers and are starting to face competition from international lenders active in the Spanish premium market.

A 20 year fixed interest rate mortgage, starts at 2.9% for residents in the Country and from 3.9% for non-residents.

Variable interest rates for non-residents can start as low as 2.5% for the first year and then from Euribor + 1.75 % for the rest of duration of the mortgage, being the Euribor at its historical lows. 
Variable interest rates for residents in Spain start as low as 2% for the first year and years after from Euribor + 1%.

LTVs can go up to 100% when listed financial assets are deposited and pledged with the lender, during the duration of the mortgage. For this product, an interest only mortgage is available for up to 10 years.

Otherwise, they can go up to 70% LTV for non-residents using just the collateral of the property they are acquiring.

Your interest are ours, as international mortgage brokers we endeavour to provide a high level of service and to complete the property transaction in an efficient way, liaising directly with your sales team if required so, supporting them all the way. 

Please do not hesitate to call us at +44 (0)20 3287 2800 for further information, or you can send us a brief explanation of your finance requirements to enquiries@financialnorth.com

CRE FINANCE

Financial North arranges and executes financing for transactions in the commercial real estate sector in UK, Germany, France and Spain.

We focus on providing a full set of value added transactional support services to our clients and our aim is to obtain maximum results from financing institutions.

We are specialists in financing highly complex transactions, ensuring that transactions close despite intensely complicated processes.

We work across all assets classes including offices, logistics, hotels and leisure, residential (for rent), office, mixed use out of the mentioned assets.

Our aim is build long-term relationships with our clients, which enable us to understand their wider strategic goals and structure optimal financing solutions.

Your loan application follows the following process:

• Underwriting.
• Sourcing and Negotiation of Lender’s Financing.
• Oversight of lender's Due Diligence Process.
• Tax and Structuring optimization.
• Closing.

We provide:

• Professional and personalized support.
• Comprehensive market and industry knowledge.
• Local expertise and experience. 
• Tailored financing and term structures.
• Reliability and constant loan process updates.
• Constructive collaboration on an equal standing basis.

Please do not hesitate to call us at +44 (0)20 3287 2800 for further information, or you can send us a brief explanation of your finance requirements to enquiries@financialnorth.com