Insurance News Archive

European mortgages 'more competitive'

Brits looking to invest in European property can benefit from taking out their mortgages in Euros as a result of the "price stability" of the European Central Bank and other advantages of taking out local mortgages according to an expert.

Mathew Weston, manager of overseas mortgages at financial services provider Blevins Franks, said that the European bank's lower interest rates make European mortgages attractive.

He said: "Most 'established' markets such as France, Spain and Portugal offer lower and more affordable interest rates than what is currently available in the UK."

And it is not only the bank rates that have brought down interest rates but also the fact that "many lenders have also considerably slashed their margins".

He pointed out that French building societies could still offer long-term fixed-rate mortgages at rates below 4.5 per cent.

There are also other measures which mean that investment in Europe is appealing. In some countries investors are entitled to mortgage interest repayments if the property is rented out.

Some of the countries also protect the mortgage holder more than the UK.

18 Dec 2007