Saturday, 24 March 2012

Mortgage in Europe

mortgage europe
The average fixed rate for mortgage loans in the EU are 3.2% -6% per annum, loan term - 30 years, the amount of credit - 60% - 80% of the value of the acquired property.

According to experts, the easiest to get a loan in the UK, Germany, Spain, Cyprus, France and Israel. Prices varies for each country, for example, a small apartment (38 m2) in Germany can be bought for 14 thousand euros, a villa in Turkey (270 m2) - over 58 thousand euros.

The lowest mortgage rates are found in Finland and Israel (in the range 3,0-4,5% per annum). Mortgage rates in the "core" EU countries are also not high - an average of 3.1% -5% per annum. The other conditions for granting loans, in principle, similar to developed countries.

Countries with the most attractive terms on mortgages:

Country                     Size                      Term                     Rate
UK                                     up to 70%              up to 20 years      from 3.3%
Germany                  up to 60%              up to 20 years      from 3.9
Spain                        up to 60%              up to 40 years      from 4.3%
Cyprus                      up to 70%              up to 40 years      from 3.6%
France                      up to 80%              up to 25 years      from 2.9
Israel                        up to 60%               up to 30 years      from 3.5%

In what currency to take the credit?

It depends on the period for which you take the credit. If this is the period of 1-3 years, it may be more effective loans in euro exchange rate which reflects the relative weakness are the processes of recovery in the European economy. Choose will most likely have in the local currency or the euro. Thus, the borrower will bear the currency risk - if the borrower has the income of local currency or USD, because of fluctuations in loan will then go up, the fall in price.

To obtain a mortgage will have to incur high transport costs to visit a country where property is located. It is important to eliminate the visa problems - in the absence of permission to visit a foreign country it is senseless to buy in real estate. Also, if you do not know the local language, you have to pay for translation of documents and consulting services. These problems can be solved by real estate agency, who will have to pay a percentage of the transaction.

Despite some difficulties and inconvenience in obtaining a mortgage on overseas property, your money will be repaid a hundredfold, as far abroad offer more favorable conditions than in the country you live.

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