Just in case you don't spot it or go directly to the forum these days, ladies and gents, this latest Finance Watch blog will be relevant to many of you. Suggest you give it a read.

Debbie,

I've sent an email but really after your assessment of the current state of the mortgage market in the Czech Republic?

I am buying on Central Park and have been told that larger deposits are becoming the norm and 85% LTV will be a thing of the past by Xmas. Is this your experience?

Hi John

Debbie is out of the office at the moment, but I'm sure will respond to your email on her return.

Cheers

We are in the process of putting out an update concerning the Czech Market.

I have been contacted by all three brokers who have raised concern over the possibility of the LTV's dropping in Czech.

I would suggest that you contact the brokers at your earliest convenience to discuss this.

Kindest regards
Debbie

Hi Deborah,

Should I try and secure a mortgage now for the "Golden Brook" development in Brno. I understand from looking at the i-PA site, that the "whats next document" comes out May 09, and white finish completion around Sept09.

I was under the impression that I should apply for a mortgage 6 months prior...should that be around Feb 09 or earlier? Based on the information you have implied around falling LTV's, should I apply for the mortgage now?

I was looking to use Star finance, and a several months back were suggesting a 100% mortgage.

Thanks,
Chris.

Hi Chris

We will be emailing all investors in the Czech Republic tomorrow with the latest information - we're just gathering everything together. This will contain advice on what you can do in the light of the latest news.

Cheers.

Raiffeisen Bank have reduced LTVs to 75% with immediate effect( used to do up to 100% for foreigners). GE will be lowering theirs too.
So, not sure if the other banks will follow suit

It might not stay like that for long if those banks that drop their LTVs start losing business. I would have thought Czech republic is the least likely of CEE to have property prices dropping.

It is a matter of liquidity. The bank managers here do not want to offer lower LTVs, it is just that , at the moment, the banks are worried about lending to each other.
Bank lending criteria has stiffened here and it is now necessary to demonstrate slightly higher income to obtain a mortgage.

Hi Chris

I would suggest contacting the brokers and discussing this with them. The impression that all three did give me that they at the moment can still find banks to offer acceptable LTV's.

They stated that if a client applies now and a more preferential LTV is offered then this could be held once the application can be signed.

I think you first point of call is to contact the brokers and discuss your requirements with them.

Kindest regards
Debbie