Conti offers remortgage deals from 2.49%

Conti Financial Services is offering overseas property owners remortgage deals from 2.49%.

The overseas mortgage company says it is seeing an increasing trend among its clients who are considering refinancing.

The strength of the euro means that equity in second homes abroad is now worth much more when converted back into sterling.

Remortage rates start as low as 2.49% in sterling for properties in Portugal on a repayment basis at a maximum LTV of 70%.

Other rates include a 2.69% deal for Spanish property at 60% LTV and 3.09% in France at 70% LTV, both available on a repayment basis.

Clare Nessling, operations director at Conti, says: “Many home owners who have unencumbered properties, or who have seen some price growth since their properties abroad were purchased, are releasing equity to pay off debts back in the UK or to help buy UK property.

“Some are releasing cash to inject into their UK properties to bring down LTV ratios, especially if they’re hoping to switch to a new mortgage deal.”

She adds: “Others simply want to switch their overseas mortgage to a significantly cheaper rate and benefit from lower monthly repayments.”

Source: http://www.mortgagestrategy.co.uk/

Spain govt extends to 3 yrs mortgage postponement

The Spanish government will extend the partial postponement of mortgages to three years from two for the unemployed and for people who are having difficulty meeting mortgage commitments, the economy ministry said in a statement.

The measure will allow those worst hit by the Spanish economic downturn to postpone part of their mortgage payments for three years.

The government also announced it will extend and make more flexible the loans offered to small and medium sized businesses by state-owned credit agency ICO.

On Thursday, Spain’s biggest bank Santander’s (SAN.MC) chairman called for more flexibility in the way the ICO loans are granted, as well as an extension on their duration and on the number of beneficiaries.

“We are in agreement with the government and ICO itself that the conditions attached to these loans need to be improved and adjusted to reflect the reality of the market,” Emilio Botin told journalists.

Spain’s largest union CCOO said on Wednesday banks must start doling out credit or face state efforts to control lending.

The financial sector has been blamed for Spain’s severe recession by various business lobbies. (Reporting by Manuel Maria Ruiz; writing by Judy MacInnes)

Source: http://www.reuters.com/