Surge in Foreign Property Purchases
The number of people considering buying a home abroad surged by 20% during September as confidence returned to the property market, a mortgage broker has said.
Overseas mortgage firm Conti said it had issued 20% more mortgage quotes during the month than it had on average during the first eight months of 2009.
It added that the average value of the mortgage applications it submitted to overseas lenders during September also rose to its highest level this year of £180,000.
The group said it usually saw an increase in activity at this time of the year, as people returning from holiday decided to purchase a place in the sun, but the jump this year had been more pronounced than usual.
It attributed the surge to people feeling more confident about the property market, while recent house price falls and record low interest rates have made owning a second home abroad more affordable.
The group added that many overseas mortgage markets had not been as badly effected by the credit crunch as the UK one, making it easier for people to borrow the money they needed.
For example, lenders in France are still prepared to advance 100% of a property's value to overseas buyers.
Clare Nessling, operations director at Conti, said: "The staycation trend may have reduced the number of Britons holidaying abroad this summer, but many of those who did venture overseas have returned home with plans to buy their very own place in the sun.
"Affordable prices, low interest rates, and a healthy appetite by overseas mortgage providers to lend, are all making it easier to buy property abroad.
"Easy access to the more traditional locations like France and Spain, together with good rental opportunities, are also contributing factors."
