Obtaining financing to take advantage of one of the best moments in recent history for acquiring real estate has become one of the biggest hurdles for potential buyers to overcome. While only two years ago lending practices were at their most lenient, the sudden turnaround has been dramatic.

More so than ever before have personal credit ratings been such a prominent deciding factor of banks and lending societies. Screening potential clients to avoid future problems with repayments has lead to one of the most difficult moments to obtain financing.

While it is arguable that improved access to financing will assist in balancing the excessive falls in real estate purchases, it is expected to be only a matter of time before restrictions on lending practices ease. Many buyers are keen to access the current market to take advantage of the exceptional property prices available, yet are held back due to limited access to lending and long term employment security. (more…)

When relying on financial assistance when investing in real estate in overseas markets, understanding the differing practices between established and emerging markets can assist with obtaining the ideal loan for the type of market being entered into.

Emerging markets tend to be countries with a local economy developing at a rapid pace. Coming in line with their established market counterparts, property prices offer unbeatable bargains with rapidly increasing capital growth potential. The security of an established market coupled with a steady and affluent domestic sector enable slower growth and higher prices, yet with increased long term benefits.

Mortgage financing is not always available in many emerging markets, yet the low entry levels and property prices in these countries can often assist with avoiding the necessity of obtaining loans. The initial boom of the real estate market in Dubai provides a good example of an emerging market where financing assistance was not available. (more…)

The practice of a multi currency mortgage involves using the fluctuations in currency exchange rates to obtain the best interest rates on mortgage repayments. Switching a mortgage into a different currency when beneficial changes in foreign exchange occur, can theoretically reduce the amount of the loan, along with the amount of interest due to be paid on the loan.

Just as mortgages that are obtained in foreign countries for purchasing foreign property reflect the interest rates of that particular market, multi currency mortgages are designed to obtain the best conditions of the exchange market to the benefit of the client.

The ideal moment to switch between currencies is decided by specialist financial brokers, with a comprehensive understanding of the exchange market. Due to the volatile fluctuations of currency exchange rates, mortgages based on these principles are entirely reliant upon the direction of exchange rate movements and the specialist knowledge of the broker.

Many currencies may be used in multi currency mortgages, although most commonly they tend to switch between the Pound Sterling, US dollars, Japanese Yen, Euros and Swiss Francs. While it may seem like an ideal practice for reduced rate mortgage payments, many risks can be associated with these loans. (more…)