March 14, 2010 – 11:28 am
Spanish banks begin to relax lending criteria
Spanish Banks are slowly relaxing their lending criteria, with one or two offering more attractive deals and higher LTVs. A spokesperson for Kyero explained: “Most banks use a debt / income ratio of either 35% or 40%, although we work with one bank that uses 50%. This really helps those clients who struggle to get mortgages elsewhere due to having a higher ratio of regular outgoings on mortgages, loans, credit cards etc. to net disposable income (the “debt / income ratio”).
“The interest rate is as low as Euribor (annual) + 0,66% (the lowest we have come across to date), with 0,5% bank opening commission and 0% redemption penalty for partial redemption”.
The eurozone base rate has remained at 1% for some time now, meaning that borrowing in Spain is still cheap. With the recovery in Germany faltering and ongoing problems in the so-called PIIGS group of countries (Portugal, Italy, Ireland, Greece and Spain), it is very unlikely that there will be a sudden hike in rates. This more relaxed attitude may help the property market in Spain, Tenerife and the Canary Islands.
By Angela
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Posted in Economy, General, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized
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Tagged banks, borrowing, Canary Islands, Euribor, interest, mortgages, Property, rate, Spain, Spanish, Tenerife|
August 14, 2009 – 2:51 pm
European property prices set to improve?
Property prices across Europe are expected to fall at a slower rate as the economy starts to level out, according to a report released by Invista Real Estate Investment Management. Conditions for the economy in the eurozone during the first half of this year were the worst since it was formed, although signs are that things are starting to improve.
The European Central Bank reports that more European banks have increased their lending, while the cost of borrowing has fallen sharply. The report says that improving property yields could increase the long-term attractiveness of investing in property.
Tim Francis, director, Continental European strategy and research at Invista, says: “With improved visibility on bottom-of-the-cycle valuations, we are in a better position to judge market pricing against fair value. This will assist in identifying attractive investment opportunities across these markets, some of which are experiencing distressed selling.” We expect deal flow to improve during H2 2009 as the other mature continental European markets including Spain and Tenerife catch up.
By Angela
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Posted in Economy, General, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized
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Tagged attractive, bank, borrowing, Central bank, cost, European, eurozone, investing, Investment, lending, long term, opportunities, prices, Property, Spain, Tenerife, yields|
