If you have a Spanish mortgage with NatWest in Spain, you may be one of the thousands of their customers that have received a letter informing you that their mortgage facility will not be extended with you and inviting you to settle your mortgage balance with them.
As overseas mortgage brokers we have already assisted NatWest customers finding them alternative and competitive mortgage solutions for their Spanish property.
If you would like to receive a free initial information on to refinance your current mortgage with a Spanish lender, please call us on + 44 (0)20 3287 2800 or send us an email to enquiries@financialnorth.com
Kind regards,
Alberto Goldar
Managing Director
15 Dec 2016
3 Mar 2016
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.
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
10 Feb 2016
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
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