Rates on mortgage markets of Europe and the USA

Analysis of the current state of interest rates on mortgage markets of Europe and the United States up to March 2010. March 2010 March 2010 reaffirmed the opinion of the company's mortgage Lowell Finance, that the preconditions for a serious global changes in interest rates in major international markets, mortgage lending in the current moment. In most regions of the analyzed banks' tendency to a slight decrease in interest rates, as well as simplification of mortgage lending international buyers, and the dynamics of changes in interest rates follows the fluctuations in the major financial indices Euribor, Libor. Spring is traditionally the high season demand from buyers abroad from Russia and CIS countries at its height, and characterized in this year's increase in the number of transactions and an increase in the number of issued mortgage loans and the demand for them. Appeared on the market customers with pent-up demand, kopivshemsya almost a year, which drew attention to the activity in the major European markets: France, Spain, UK, Italy, Cyprus applied to these markets in order to acquire property for recreational and investment property abroad. Solvency of customers still relatively high, and therefore, to obtain mortgage financing is warranted. There are some limitations, as noted in the February report, the Greek banks have more opportunities to reduce the amount of credit. At the same time, extensive real estate markets such as Bulgaria and the United States, which are popular with buyers from Russia, notes some positive trends that allow us to speak about the beginning of the recovery processes of the mortgage market in these countries for 3 - 4 quarter of this year . International financial markets are the U.S. economy is recovering gradually, slowly, but the situation was corrected, this was the main indicators such as inflation, budget deficit, the real estate market indexes, as well as unemployment. Changes in the basic discount rate the Fed does not occur, although in February, was raised the discount rate from 0.5 to 0.75, which relates to the lending Federal Reserve banks. These changes should not lead to tighter financial conditions for households and businesses, according to the Fed, and not preceded by the inevitable increase the base rate, which is the main tool of monetary policy the Fed. However, the increase in base interest rates in the long term 4-8 months is definitely there, which will certainly impact on future changes in interest rates the ECB and the Bank of England, which, of course, affect the situation with the international lending abroad and rising mortgage rates. Prospective borrowers should assume that now receiving a loan to buy property abroad with a floating interest rate risk a substantial increase in loan payments in the long run 1.5 - 2 years is estimated as high. While rates on fixed loans now seem the most preferred in most European countries such as Britain, France, Spain, Portugal, Cyprus, Italy and others, allowing you to fix the fees for the entire loan term at historical lows. During March 2010 we can note the following directions and interest of property buyers abroad from Russia and CIS countries with a mortgage financing: The greatest demand is for two countries: France 37% Spain 26%, the share of demand in total, compared to February 2010 year slightly changed, increasing the percentage of Spain (21% in February) and decreased in France (45% in February). 2 countries enjoy the same interest, it is the United Kingdom and Italy, 11% of total demand. The remaining 11% comes from four areas: Austria, Greece, Portugal and Cyprus. We elaborate on the preferences of home buyers in several countries, namely France, Spain, Great Britain, it is possible that information on the budget for the purchase, acquisition of the regions in these countries could be useful for professionals and consumers considering these markets for investment or buying a property abroad . France For over 3 consecutive months, France is the most popular destination in terms of purchasing real estate and mortgage lending abroad by customers Lowell Finance. Demand as the credit products offered by the schemes leaseback, and the elite real estate lending, funding for which is obtained from considerations of minimizing tax payments. Refinancing real estate loan secured by real estate available in France, demand almost all of the products, depending on the individual situation of each client. Along with the ability to obtain a loan of up to 80% of the appraised value and the low fixed APR of 3.15%, and variable from 2.3% per annum rate of the euro, the situation with a mortgage in France, continues to be one of the most favorable in Europe. Of regional preferences remain the most popular Cote d'Azur, this region accounts for 38% - of the total demand in France, Paris claimed 23% of customers, high interest accounts for about 31% at 3 in the region, including Langvidok, Pyrenees Atlantiques and Normandy, 8 % fall in the French Alps. 30% of customers make a purchase of real estate with a mortgage, the cost of 300,000 to 750.000 Euro, the same value of less than 300,000 euros. 15% of clients receive loans on real estate worth 750.000 - € 1,500,000 and 23% of the cost of more than 1,500,000 euros. Depending on the type of property: 55% of customers in purchasing a property in France opt for apartments, 29% for residences or villas, 16% considered the commercial real estate in France: mostly - retail space on the Cote d'Azur or Paris. Motivating clients receiving a mortgage in France in March included: purchase of property for their own holiday - 42%, investments and recreation - 38%, only the investment objectives - 20%. Spain delays associated with processing applications for mortgage loans are one of the biggest limitations in lending in Spain, the period of consideration for the loan in a Spanish bank can reach 1 - 1.5 months. However, credit, up to 60% of the appraised value of the property at the moment it is possible to obtain, and the delay in reviewing the dossier usually occurs only in cases of large amounts of a possible loan, which is not always a problem for borrowers in Spain. Mortgage rates in Spain for the current month have not changed. Minimum fixed rate loan at 4.15% for 12 years, is now available in parts of regions in Spain. The margin of Spanish banks remained at the same level and have not changed over the past 3-5 months. At the moment look attractive loans with floating interest rate, if possible early redemption of, in other cases, a mortgage loan with a fixed interest rate is preferable, carrying less risk of changes in interest rates over the medium term. Equally high demand in March, used objects in the regions of Costa Blanca and the Costa Brava for 33% of clients were seen as a mortgage broker place to buy property in Spain this coast. Interest in the Costa del Sol showed 22% of customers. In March, among the regions in which there was interest in Spain were also in Madrid 7%, and real estate in Tenerife 5%. About 34% of the loans account for objects, valued at 750.000 - € 1,500,000. About 27% of the cost of 300,000 - 750.000 Euros, while the remaining 39% - equally account for objects worth less than 300,000 euros (19.5%) and the same to the objects of more than 1,500,000 euros. It may be noted that all the loans received in March were in the range of 50-60% of the appraised value of the property, and the motive for the acquisition of 89% of cases had been buying property for their own recreation. The argument for buying still remains a wide selection of offers, best condition for the acquisition to date, and returned pent-up demand for buying property in Spain. Great Britain Great Britain at the moment demand in terms of lending, but in view of the restrictions that are introduced banks for international buyers, mortgage financing is not available for all categories of buyers. Restrictions on lending in the UK are mainly related to the objects of property worth up to 500,000 pounds, which are the stages of construction - for such facilities, there are certain difficulties in obtaining mortgage financing. The size of a possible loan in the UK can not exceed 70% of the appraised value at the moment, banks are on average willing to lend up to 60% of the appraised value of property in the UK. Mortgage rates in the UK have shown a general decline in average of 0.1 - 0.2% compared with February 2010. Minimum fixed rate loan at 3.3% in GBP for a period of 5 years is now proposed for certain categories of borrowers in the UK. Among the clients of Lowell Finance, applying for a mortgage loan, the company sought in March 2010, used the facilities in London, 100% of demand accounted for apartments in central London. The average cost of purchased mortgages at the object was 1,347,000 pounds, and size to attract loans from 50 to 60% of the appraised value. At the same time the main motivation for 75% of cases were relax and investment in the remaining 25% of cases - Holidays and accommodation in the UK. USA Together with conflicting data on the bankruptcy of the new banks in the U.S., the mortgage market returns to some optimism that this year the situation will stabilize. Note that currently the situation with lending in the U.S. is characterized by almost complete absence of all credits to international buyers of apartments and condominiums in Florida, California and Nevada, and New York State, such trades are made, but there are certain limitations, including the objects the pledge. At the same time a number of banks is beginning to attract international buyers in Florida, returning the loan program without your income. Community Bank, located in Miami returns providing the loan with a fixed rate of 6.5%, for 30 years, without evidence of income. It is worth noting that for customers from Russia, this program works with some limitations, but this sign is seen as positive, to change the situation and to improve lending in the next six months. In March, lending to customers in the United States Lowell Finance claimed was not including in the form of significant limitations in terms of lending by U.S. banks. In such cases, customers are considering buying real estate in the U.S. without involving mortgage financing. For more information and advice you can get online www.GFPI