Throughout the first quarter of 2016, 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, with a base rate of 0.042% and banks have reduced their interest rate margins to the extent where rates are now lower than this time last year. The opportunity to lock in rates at such low levels for such long periods remains extremely attractive for foreign investors.
“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.” – Financial North February 2016 Newsletter
+44 (0)20 3287 2800
Lucas Fox partners Mortgage Direct look ahead to why 2016 is going to be a good year for property investment based on low interest rates, more competitive lending and Spain being singled out as a growth market in the international press.
“We are hearing from many agents that the year has started strongly, which is encouraging. It has certainly been a busy period for us at Mortgage Direct and the mortgage market continues to get more competitive with attractive fixed rates and more banks entering the market.” – Mortgage Direct February 2016 Newsletter
Best available fixed rates for Mortgage Direct’s non-resident clients:
Up to 10 years at 2.15%
Up to 15 years at 2.50%
Up to 25 years at 2.95%
Current Mortgage Conditions
Mortgage Interest Rates
Euribor (0.005%) + 1.3% to 2.5%
Currently 1.305% to 2.505%
Maximum Borrowing (lower of valuation or purchase price)
Fiscal Residents 80%
Non-residents up to 70%*
*Depends on client’s profile and country of residence.
1 Euro = 0.777 GBP
1 Euro = 1.127 USD
For any questions or client enquiries:
+34 963 156 011