UK homebuyers are increasingly looking abroad to buy property and seek mortgages, according to Assetz Finance.
The firm has also observed a shift in the type of buyers looking abroad, with many more buying a foreign property to live in, rather than as an investment.
Assetz Finance has observed a 10% rise in the number of enquiries from those looking to purchase a home overseas in recent months, with France and Spain proving particularly popular.
Assetz says part of the attraction is a widening range of products from European lenders in stark contrast to the UK market, where product ranges have been cut considerably.
“With a growing number of French and Spanish lenders now widening their offerings, buying a home overseas has become an increasingly accessible option for those looking for a change of lifestyle,” says Katy Hepworth, overseas mortgage manager at Assetz Finance.
“While it’s important to remember that obtaining a mortgage overseas is a very different process compared to that in the UK, with the right advice and careful research, buyers can secure some excellent deals in the current market place.”
She says French banks and building societies are offering 95% and 100% LTV deals, and many offer mortgages with no set-up fees.
Assetz Finance also claims many overseas buyers are looking to live in their foreign home, rather than using it as a holiday home or investment.
Late last year, the split of those investing abroad and those planning to live in their overseas home was fairly even, according to Assetz, but since the beginning of 2008, those wanting to move to Europe outnumber investors by five to one.
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