Loire, one of France’s most popular destinations among overseas property buyers Photo: Erminig Gwenn
UK is not the only country to be enjoying low mortgage rates this year, with a host of European destinations all seeing rates fall. For those looking to snap up a winter holiday home, then, the conditions are ripe for a cool bargain. Indeed, according to the latest Quarterly Index compiled by the OverseasGuidesCompany.com, buyers are taking advantage, with enquiries up 17 per cent year-on-year.
Which market is the most favourable? We round up the mortgage rates in the most popular expat hotspots…
Turkey – 6.4%
Buyers can find a mortgage in Turkey for a rate of around 6.40%. Despite recent political conflict, 2014 has been a year of significant growth in Turkey, suggesting that financially savvy overseas property buyers haven’t been put off snapping up the readily available bargain properties.
Portugal – 4.1%
Rates on offer in Portugal sit at 4.10 per cent. This is a reflection of the nation’s desire to safeguard its economy now things have started to move in a positive direction once again.
Angelos comments: “We have had close to 3000 enquiries about buying property in Portugal so far in 2014. The Algarve remains a popular choice for expats, especially those looking for a lifestyle change or a buy-to-let investment”.
Italy – 2.9% The popularity of the nation has been further fuelled by the European Central Bank’s (ECB) interest rate drop introduced throughout Europe, which has made it possible to secure a mortgage in Italy as 2.9 per cent.
Angelos explains: “There has been a reduction in all of the taxes involved in purchasing Italian property. Other reasons for its growing popularity include its lack of inheritance tax and no Capital Gains Tax after five years”.
Spain – 2.75%
Accounting for 24 per cent of all enquiries into OGC, Spain remains the most popular destination amongst expats, according to the Quarterly Index. There are good repossession properties still available and mortgage rates on offer from as little as 2.75 per cent.
France – 1.80%
This year, France has seen its popularity soar among overseas buyers, thanks to historic mortgage rates, despite other prevailing concerns. Indeed, trailing its neighbour by just a few per cent, France has accounted for 21 per cent of all enquiries to OGC so far in 2014. Another country benefitting from the ECB low base rate, mortgages in France can be secured for as little as 1.8 per cent.
Angelos concludes: “Although there are some fantastic rates available in long haul destinations, should you really wish to benefit from these record low mortgage rates, your best bet is to focus your search on Europe”.