Overseas mortgage products
Interest only mortgage available on Bulgarian real estate
Piraeus Bank London, the UK branch of one of Greece’s leading financial institutions, Piraeus Bank, has launched an interest only euro mortgage product on Bulgarian property exclusive to the UK and Bulgaria.
The last few years, especially since EU accession in January 2007, have seen Bulgaria become one of Europe’s most popular real estate investment locations. Over 30,000 Britons have purchased properties already with the majority of those being off-plan investments. The new interest only product for up to 10 years available from Piraeus Bank London will appeal to property buyers looking to maximise their potential financial gains.
Irini Tzortzoglou, head of retail banking, comments, ‘The low property prices in Bulgaria have made the market extremely appealing for investors. Many are buying properties off-plan with a view to obtaining capital gain and rental income from tourism once completed. Offering a finance product which combines a 10 year interest only period and one which takes into account up to 30 per cent of projected rental income is highly exciting for investors.
‘Piraeus Bank is increasingly being recognised in the UK for tailoring its mortgage products to the needs of today’s buyer. The Bulgarian property market is dynamic and fast paced and we strive to ensure that out finance products develop in line with the market.”
piraeusbank.co.uk.
Spanish bank withdraws non-resident mortgage lending
Spanish bank Banesto, part of the Santander group, has recently taken the dramatic step to withdraw all of its own non-resident mortgage lending. The only product it will offer to foreign applicants is a self-certification loan which they are administering on behalf of GMAC.
This news comes just weeks after Caja Mediterraneo (CAM Bank), one of the largest providers of non-resident mortgages in Spain, instructed some of its branches to accept no further non-resident mortgage applications for the time being following a spate of false mortgage applications.
Heather Chambers, director of International Mortgage Solutions Ltd (IMS), Spain’s largest non-resident mortgage broker comments, ‘This is clearly a case of once-bitten-twice-shy for Banesto. It is sad that due to certain unscrupulous brokers supplying false paperwork to the banks in order to push through an application so they can earn their commission, the ethical buying public has to suffer. However, we must applaud this action as it should serve to prevent and dissuade both clients and the brokers involved repeating such practices in the future.’
Heather continues, “It is a fact that as the Spanish mortgage market opens up and further flexibility is offered, including self-certification, the depth of the credit analysis undertaken has also increased. The Spanish banks are tightening up and at IMS we have noticed how pedantic they have become about documentation provided, and quite rightly so. Lenders will also now check liabilities and credit files back in the applicant’s country of residence, something that didn’t take place previously. Scottish Widows, part of the Lloyds TSB group, has taken the extra measure of registering a non-resident loan granted in Spain back in the UK on the client’s credit file. The climate is certainly changing and those practitioners operating on the wrong side of the law will have to clean up or close down.”