Highlights
Mortgage enquires for Greece more than double
Favourable terms offered to foreign investors in Australia
Look out for Northern Portugal and the Balearics Islands in 2011.

Greece's domestic financial difficulties have been well documented over recent months which has forced many property sellers to be realistic on price. Recently we experienced a high volume of enquiries for Greek mortgages, as many investors are now starting to capitalize on these favourable market conditions and buy properties from distressed sellers at bargain prices. New build properties in Greece are currently low in numbers as most developers have unsurprisingly suffered during the financial crisis, meaning there is potential for the market to pick up over the medium to longer term once the dust has settled on the recent financial difficulties. Although banks are being selective with regards to lending it is still possible for foreign investors to obtain mortgages up to 70% of the property's purchase price, with interest rates available from a very competitive 3.29%.

According to recent data compiled by the Real Estate Buyers Association of Australia, £14.5 billion properties in Australia were purchases by foreign investors during the peak of the global financial crisis in 2009, with the figure widely expected to increase over next 5 to 10 years. Interest rates in Australia have risen in recent months, with the cost of mortgages increasing considerably for many local buyers. As a consequence many Australian property firms are now targeting more foreign investment, as they recognise more favourable financial terms available to them. Interest rates on mortgages available to foreign investors start from just 1.59% with lending widely available up to 70% of the property's purchase price. It is therefore not too surprising to learn that last month Australia entered our top 10 enquiries list for the first time.

Whilst most UK citizens who buy property in Portugal traditionally go for homes in The Algarve or Silver Coast, Northern Portugal is growing in popularity with the city of Porto and surrounding areas becoming a hotspot to look out for in 2011. Unlike most popular Western European countries mortgages in Portugal are currently available to foreign investors up to 80% of the property's value, which means investors who are able to buy properties with a discount of 20% or more, may be able to secure 100% funding for the property purchase. Interest rates on mortgages in Portugal start from just 3.12%, with fixed and variable rate mortgages available over periods ranging from 6 months to 25 years.

The Balearic and Canary Islands is another place to look out for in 2011, as Spanish locations have always proven very popular with UK buyers and holiday makers. Unlike mainland Spain the Balearic and Canary Islands have not suffered the same fate with an oversupply of new build properties, and offer an upside potential for buyers looking for a holiday home in the sun. Interest rates in these areas start from just 2.73% with finance available up 80% of the property's purchase price. Some mortgage products also have the added benefit of no mortgage payments to be made within in the first 3 years of the loan.

For more information on available mortgages click here