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Expat Investor : January February 2009
PROPERTY INVESTMENT Expatriate mortgages made simple We offer mortgages from international and UK-based lenders to give you the best rates, complemented by a first-class service. To enquire please call, send an email or visit our website for more details. Expat Mortgage Plans is a trading name of Bellwood Prestbury Limited which is authorised and regulated by the Financial Services Authority. Tel. +44 (0) 1242 584558 EXPATRIATE MORTGAGES Lender Bank of Scotland International Barclays Bank Halifax Irish Permanent International NatWest International NatWest Mtg Service Royal Bank of Scotland Royal Bank of Scotland Int Woolwich 7.35 7.14 4.75 6.5 5.19 5.19 4.44 4.44 5.49 Rate % Max. % Fee Notes firstname.lastname@example.org Fast Facts 80 0.5-1% Lifetime tracker and fixed rates available 22519 80 75 75 Varies Varies - 80 0.5-1% Fixed, tracker and SVR Fixed and tracker rates No products currently available Fixed and tracker rates. Min £50k 95 £0-£1499 Standard mortgage range available 95 £0-£1499 Standard mortgage range available 80 0.5-1% 80 Varies Fixed and tracker rates available Standard mortgage range available Figures compiled: 3/1/09. Source: MoneyFacts www.moneyfacts.co.uk Expatriate = UK residents working abroad short-term and buying a property in the UK. Lender may allow property to be let. OVERSEAS PROPERTIES Lender Banco Halifax Hispania Barclays Bank HSBC Investec Private Bank Leeds BS Lloyds TSB Location Spain Spain Portugal, Italy & France France, Spain, Malta France, Italy, Spain, Portugal, Monaco & Guernsey Gibraltar, Spain, France Newcastle Building Society Norwich & Peterborough BS Currency Euro Euro Sterling, euro Fast Facts 22520 22500 Euro, Maltese lira or selected major currency 22503 22517 Sterling, euro France, Spain, Portugal, Australia, NZ, Canada, US, Dubai, Currency of choice Hong Kong, Singapore & UK Gibraltar Royal Bank of Scotland International International Private Finance Source: MoneyFacts Buying a Spanish property Darren Fretwell, Head of UK Sales International Mortgages at NatWest International, updates expats on the Spanish property market and the means to secure a mortgage. and many property developments have been built to attract those who want to purchase a permanent place to visit. Like the UK, however, Spanish A number of studies clearly show Spain continues to be the number one destination for UK citizens looking to purchase a property overseas, and it’s not difficult to see why, with its proximity to the UK, a healthy supply of properties available and let us not forget the climate plays its part as well. As the global economic downturn suggests 22 EXPAT INVESTOR ? the number of individuals looking to buy overseas has fallen recently, now may well be the time for those still interested in purchasing overseas to look again at the Spanish property market. The popularity of Spain’s expansive coastline with UK holidaymakers, particularly from Alicante to Marbella, is still strong January/February 2009 property prices have fallen, and market commentary suggests they look likely to continue to fall in the short term. Those looking to purchase may want to factor this in to the price they pay. Having the cash available to move quickly enough to access the best bargains can be advantageous, but there is nothing stopping these individuals seeking to raise finance on the property through a mortgage in six or 12 months’ time. For those that do not have the full cash amount, mortgages are still available, and whilst some Spanish banks may now choose not to offer overseas buyers funding, a number of UK banks, such as NatWest International Personal Banking, are still operating Gibraltar & Southern Spain Spain France, Spain, Portugal, Italy, Florida, South Africa, Bulgaria Sterling Sterling Euro, sterling Euro, sterling, US dollar 22505 22506 22516 22509 22510 22518 22500 Barclays Bank 22502 22503 22507 22507 22510 22510 22512 Investec Private Bank Fast Facts 22517 Irish Permanent International Fast Facts 22504 Leeds Building Society Fast Facts 22501 NatWest International Fast Facts 22507 Fast Facts 22500 EURO MORTGAGES Lender Bank of Scotland International Fast Facts 22519 www.expatmortgageplans.com Fast Facts 22010 Notes Rate linked to EURO LIBOR + 1.20% with option to set rate for 3, 6, 12 months. Max 70% LTV. Interest only or capital repayment. Min £400k. Max term 20 years. Arrangement fee up to 1%. Redemption charge applies. Rates also available on same terms in US dollars, Swiss Francs and HK dollars. Rate linked to Barclays Bank 3 month LIBOR rate applicable for a 90 day interest period. For house purchase only. On an interest only basis, max 65% LTV, advance £500k, term 5 to 20 yrs and fee 0.5%. Redemption charge applies. Barclays Euro Current Account required. Rates also available on same terms in dollars, Yen, Swiss Francs and Hong Kong dollars. Rate is based on EURIBOR +1.25% to 2%. Max 70% LTV. Upfront fee of up to 1%. Min adv of £1m in euro equivalent. No redemption fee penalty. Also available on same basis in US$, Swiss Franc, Japanese Yen. Managed multi-currency also available. Rate is based on EURIBOR + 1.24%. Max 75% purchase & remortgage. No redemption fee payable. Fee 1% (min €1.5k) Irish € product. Rate based on EURIBOR + 1.45%. Max 75% LTV. No fee. No redepemption penalty payable. Rate is based on 3 month LIBOR + margin. Max 60% purchase & remortgage, on repay ment or endowment basis, max term 30 years. Income multiples 3.75 x joint plus 1 x 2nd or 2.75 joint. Minimum advance £100k in euro equivalent. No redemption penalty payable. Fee – refer Mortgages for borrowers who are paid in euros to purchase or remortgage their main UK property Source: MoneyFacts FOREIGN CURRENCY LOANS Lender Location Bank of Scotland International Barclays Bank Investec Private Bank UK property UK property MOVING RATES Fast Facts 22519 22500 UK & selected European property 22517 Irish Permanent International NatWest International UK property UK property Royal Bank of Scotland International UK property Currency switching allowed on all major currencies Source: MoneyFacts in the market and are keen to assist potential buyers. An interesting current feature for property hunters is the increased number of repossessions in Spain. As repossessed properties they are being offered at heavy discounts, and it is unsurprising that they are being snapped up quickly. Gaining access to these deals is not as straightforward as it may seem – it is not simply a case of logging on and viewing all the available properties. Estate agents may have significant numbers of properties – too many to list on a website – and the real bargains may only be found by a direct visit. It’s therefore essential to build contact with these people if you want to see a good range of available properties. In progressing with a view to buying the property of your dreams the buyer does need to be wary and must take their own professional advice for this purpose. For example, true title must be established, you need to understand the significant fees that apply when buying property and take care regarding the unusual, such as checking any expatinvestor.com 22504 22507 22510 All the information on interest rates published in Expat Investor is checked regularly and to the best of our ability. However, rates do change on all accounts sometimes frequently and we advise readers to double check those interest rates which they find appealing before beginning any transactions with the deposit-takers concerned. alterations to the property been registered with the town hall. Indeed, has the local authority provided all relevant permission and licenses for the property to be built in the first place! These points may be overlooked. Therefore, it is vital that the purchaser obtains not just an independent valuation but also an independent lawyer who will operate with the client’s best interests at heart when checking the deal. In effect, purchasers should not get carried away when buying their holiday home; they must ensure they have the same mindset they would have when buying their UK residential home. The availability of properties at lower prices, coupled with a general over-supply of properties in Spain, puts the UK purchaser in a particularly strong position at the moment. Developers may be open to offers and potential UK buyers may think that at the right price – whilst recognising that there are no guarantees prices will not fall further – Spanish property could be becoming an attractive proposition. Fast Facts 22905
March April 2009