Brits with  overseas property are raising mortgages on their  properties abroad as the  credit crunch bites and finance is severely restricted in the UK.  Assetz Finance is now offering a remortgaging service for holiday homes,  after a 50% increase in enquiries regarding cash-raising  mortgages on European property since the start of the credit crunch.

Whilst credit has dried  up to a large extent in the UK, overseas property owners are realising  the potential of their overseas property investments as an alternative  way of raising cash. Many want to buy property in the UK but don’t  have the large required deposits. Others want to use the  funds to help their children in buying their first home, or to raise  funds to help them out of the credit crunch.

Mortgage brokers in the  UK are able to partner with Assetz Finance, to help their clients to  raise deposits for property purchases in the UK. Brokers are then able  to access the many deals currently available with high deposit  requirements for their clients.

Katy Hepworth, Overseas Mortgage Manager at Assetz Finance comments:

While interest rates  have risen in Europe and borrowing is no longer available at 3-4% as it  has been in the past, European lenders are still doing business as  normal and most have not tightened their lending criteria. They are in  a position to continue lending whilst their UK and US counterparts are  severely restricted, and British holiday home owners are beginning to  take advantage of this opportunity.

A French holiday home  owner could raise £100,000 using a 20 year Euro mortgage from a French  lender at a rate of 5.4% for an interest only mortgage and 5.25% for a  capital repayment mortgage, both of which are readily available.

This entry was posted on Friday, July 31st, 2009 at 15:54 and is filed under World. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.