Update on market over last month

• New innovative mortgages now available in Spain
• Moroccan mortgages become available to foreign investors
• 75% mortgages now available in Ireland

Although banks throughout Europe have become more conservative in terms of their lending over recent years, they have become more aware of the immediate need to stimulate the housing economy with some innovative finance proposals. Nowhere has this become more evident than in Spain, where many mainstream mortgage lenders have now found themselves as reluctant real estate agents due to the high number of repossessions that have taken place.

In some of Spain's best loved regions such as Costa del Sol, Costa de Almeria, Costa Calida, Costa Blanca, Costa Azahar and Ibiza there are now new mortgages in place to help entice property buyers. The main benefits of these innovative mortgages is that you do not pay any mortgage payments for the first 3 years of the loan, and finance is available up to 80% of the property's purchase price (the amount showing on the Escritura). Currently there are no fixed rate mortgage options available, as all the mortgage rates offered under this scheme are available on a tracker rate mortgage based on Euribor.

Many people now believe Morocco is fast becoming the Riviera of North Africa, and off the back of this popularity mortgages have now become available to foreign investors. Finance is available up to 60% of a property's purchase price with interest rates starting from 5.07% variable, and 5.82% Fixed. Unlike most banks this particular lender does not require a credit report, however all applications will need to fit the lender's affordability criteria with the new mortgage payment needing to be less than 35% of their net income.

A few months back Irish mortgages were typically available at around 6% interest rates and up to 60% Loan to value. Surprisingly recent movements by Irish lenders have made their mortgages much more favorable to foreign investors, with lending in Ireland now up to 75% of the property's purchase price, with interest rates starting from just 4.25% variable, and 5.35% Fixed.

This month we launched www.connectoverseaspro.co.uk which is a free overseas mortgage website for property agents and mortgage brokers.

Key benefits on the service include:

• Its free to use, with no membership fees.
• Free online access to over 300 mortgage products in more than 30 different countries.
• Great rates of commissions, enabling brokers to earn 25% of all qualifying case fees.
• Free access to mortgage lending criteria, helping brokers to pre-qualify their clients before applying.
• An online quick quote facility that allows brokers to create a personalised mortgage illustration for their client.
• A free decision in principle service.
• First class support from our team of mortgage specialists throughout the entire mortgage process.

Click here for more information

Geoff Simmonds (Connect Mortgage Group).