How to Save on your Mortgage

As I’m sure you’re aware, for a lot of people, mortgages take up a big chunk of monthly bills. For the majority, family housing expenses occupy for than a quarter of their budget, so clearly saving money on your mortgage can only be a good thing.

Luckily, there are some actions that you can take to save money in this section of your family’s budget. Initially, double check the terms of your mortgage. It’s possible that you could qualify to refinance your mortgage at a lower interest rates, in the process saving hundreds a month.

Afterwards, review the mortgage note’s total payment term. You have to pay a greater amount of interest in the case of a longer payment term with smaller monthly payments. Discuss and make  the decision of whether or not saving monthly is a priority over saving money in the long term. Often families will choose a longer payment scheme so that more money is available on a monthly basis. Unless getting out of debt as quickly as possible is the goal, then a shorter mortgage note is often selected. Consider refinancing into a note with a longer or shorter term based on your decision. This can save you either hundreds every month, of thousands over the total length of the loan.

If you don’t think refinancing is the choice for you, there are still alternative ways to save. Look at how much monthly you are expected to pay into escrow. Often mortgage companies will overestimate expenses such as insurance and property taxes. Enquire about the possibility of an evaluation of the costs, which may then result in more monthly savings.

Research is key in saving money on your mortgage, but it is possible. So tread carefully and keep informed to maximise your chances of saving successfully.

If you have any further enquiries,  are interested in overseas mortgages or would like to take aout a mortgage abroad, get in touch with Conti - Mortages Overseas weither by exploring our website www.mortgagesoverseas.com or via telephone 08009700985

How to be a Successful Overseas Property Buyer

How to be a Successful Overseas Property Buyer

Investing in property can sometimes be stressful and a bit of a hassle but as most will tell you, once you’ve achieved it you will feel a huge sense of satisfaction. Here are some helpful hints and tips to minimise the stress and to maximise the satisfaction.

Think ahead and make a decision on what questions you want to ask your possible estate agent. Enquire about essential information, facts and figures. For example; the quantity of houses they’ve sold in the past year, where they were in relation to the area you’re interested in etc. Decent agents will be more than happy to give you such information and talk you through it all. A not-so-decent agent will not, and this should ring alarm bells.

Get organised! It makes overseas property purchase a lot simpler. Get a notebook or a folder where you can keep any advice or information you gather. This will create an invaluable source of data that you can easily access for reference purposes.

Unfortunately, the reality is that you have to anticipate extra costs and fees when buying a property overseas. Most will consider relevant taxes, down payment, bank funds etc. when, in fact, costs such as improvement bonds, school taxes (if applicable) and other location specific charges may be included. Think logically and think laterally to best predict such additional fees.


To ensure that you’re in the best possible position before buying, ask your estate agent for a checklist. Many will have pre-made checklists specifically designed for buying a house. Getting your hands on multiple versions of checklists from a couple of different agents means that you’ll be covered for basically all possible scenarios.

If you are planning on investing in a foreclosed home, it’s important that you make arrangements for repairs to happen. In quite a lot of cases, homes that are foreclosed have been left empty for a while before hitting the market, so it’s likely that they’ve been neglected on the upkeep front. They are likely to require HVAC (Heating, Ventilation and Air-Conditioning) system installation and you should be aware of the possibility of pests.

Be prepared to be a bit flexible. You may fall in love with a house but the location may not be great, or vice versa, you need to be aware of your budget. So be ready to search in another area or maybe try looking at a different type of home.

Establish clear long term and short term goals for yourself. If these goals aren’t met, search for another property. After all this is an investment and if it doesn’t meet your objectives, the investment’s unlikely to pay off.

Don’t place your purchase solely on one factor e.g. the view. You may love it, but if it’s subjective, others may not agree with you so you may end up missing out if you decide to sell the house in future. Try to ensure the property has multiple good points rather than just one. If you love it, go for it but try not to pay too much.
I’m sure you’ve already heard this but... Location, location, location! Location should be very high up on your priorities list. E.g. if you are investing in overseas property to set up a shop, if the location isn’t right you won’t get the customers.

Consider the asking price of the house when deciding upon your initial offer. If you have an accommodating seller, it’ll be simple to determine a final purchasing price that you are content with.

Get ready for some remodelling and some repair work, this way you get the most value from your property. seeing your investment’s value increase is incredibly satisfying and if you do it right, its value could increase beyond what you originally invested in it!.

Hopefully this has given you a little bit of an insight into the fact that buying property overseas isn’t as complex as it initially seems. The research stage could get confusing, but it will be worth it in the long term.
If you have any questions about investing abroad, buying a property overseas or taking out a mortgage abroad, get in touch with Conti - Mortgages Overseas either by exploring our website (www.mortgagesoverseas.com or via telephone 08009700985

Low house prices in Italy will stay low

According to one of the latest reports from Nomisma, Italian house prices are expected to drop again in 2012 due to the persistent recession and ongoing issues in the Eurozone. New Government plans are also predicted to help keep prices low for the foreseeable future.

The report expects the quantity of house sales to be at its lowest since 2000. It is thought that purchases may drop down to 529,306 (reduction of 12%). This estimate is based on the fact that the number of Italian property sales in the first quarter of this year dropped by about 20%. The same report demonstrates that the cost of a new house fell by 1.8% in the beginning of this year, and when compared to 2008, prices in the biggest Italian cities have fallen by 11%.

Nomisma has said.“The deteriorating economic context, coupled with more selective borrowing conditions and the widespread expectations of a wider depreciation than already recorded are the main reasons for the new halt to the real estate market.”

Bloomberg has predicted that the Italian economy may decrease by up to 2.4% this year, and that home sales are expected to fall further ‘amid rising unemployment and Prime Minister Mario Monti’s austerity measures weighing on consumer demand’

It was revealed by a Finance Ministry agency that, in June, the Italian property market posted its largest drop since the beginning of data collection in 2004  A new housing levy, marking the reappearance of tax on primary residences after four years, ‘won’t be an incentive for the market’ in coming months, stated the Agenzia del Territorio.

If you are interested in the Italian property market, would like to take advantage of Italy’s low housing prices or are interested in taking out an Italian mortgage, get in touch with Conti - Mortgages Overseas by exploring our website (www.mortgagesoverseas.com) or via telephone 08009700985

Cautious overseas property buyers stick to low risk countries

According to a property expert, the continuing economic situation is causing investors in overseas property to stick to nations viewed as ‘low-risk’ or ‘core-markets’ in an attempt to evade the ongoing Eurozone crisis.

Associate director of forecasting at DTZ, Matthew Hall has said that there are still  plenty of chances for potential  investors in property abroad regardless of the current state of the market.

Right now, a spectrum has evolved with polar ends. Those countries most and least affected by the economic crisis e.g. Nordic countries have experienced downward pressure on prices where the demand from investors is for ‘a very low risk, safe and stable type of asset’. People approach buying property in Spain with caution due to its recent Eurozone bailout and financial difficulties.

Mr Hall had this to say: "Core Europe and the safe haven markets have seen further downward pressure as investors flee the perceived risk in the most exposed European economies. The required rate of return as a result has been dragged down for property, so this has increased the attractiveness of core markets."

He then added that there is evidence that overseas property buyers are seeking out European countries that are likely to be a lower risk investment.  

Jones Lang LaSalle has recently shown that the British, German and French property markets have been increasingly dominant, together being accountable for 70% of European property investment in 2012 .  

Despite the persistent economic situation, several experts have agreed that the overseas property investment market is easily staying afloat

If you are interested in European property investment, buying a house abroad or in taking out an overseas mortgage, get in touch with Conti - Overseas Mortgages via our website (www.mortgagesoverseas.com ) or by telephone 08009700985

Plunging Prices of Portuguese Property

Plunging prices of Portuguese property

The latest numbers have shown that portuguese property prices are continuing to plunge.

Statistics Portugal’s most recent set of data has shown that prices of Portuguese property have plummeted by 8.9% in May 2012 in comparison to the same time the previous year. Global Property Guide has added that when taking inflation into account, the prices have in fact dropped by 11.3%.

In terms of quarters, value of property in May fell by 0.8% meaning that the new national average of Portuguese property is at 1,047 euros per square metre.

Apartment prices are falling at a faster rate than houses (10% drop compared to 7.2%) Suggesting that now may well be an ideal time to invest in Portuguese property as prices are so low.

If you have an interest in Portugal, buying a house in Portugal or taking out a Portuguese Mortgage, get in touch with Conti - Overseas Mortgages either by exploring the website (www.mortgagesoverseas.com ) or via telephone 08009700985

Wealthy French residents flee leaving behind a fantastic choice of property in France

The selection of luxurious high end homes in France has greatly increased due to the recent french presidential election. It has been reported by the Daily Telegraph that lots of french families are ‘fleeing a proposed new tax rate of 75 per cent on all earnings over one million euros’ (around £780,000).This means that quite a few fantastic french properties are now making their way onto the french property market, suggesting that now could be a good time to invest in high end french property.

One of the top overseas estate agents has revealed that its french sector has sold over 100 properties valued at at least 1.7 million euros within the past couple of months (A significant increase when compared to the same time period last year)

"The result of the presidential election has had a real impact on our sales. Now a large number of wealthy French families are leaving the country as a direct result of the proposals of the new government.” Says Alexander Kraft, head of Sotheby's Realty in France.

"These properties are then bought up by foreign investors looking for a stable real estate market like France to invest in.”

"It shows the high-end property market is holding up very well, even in these difficult times."

If you have an interest in the french property market, are interested in buying a house in France or would like to take out a french mortgage, please get in touch with Conti - Mortgages Overseas via our website (www.mortgagesoverseas.com ) or via telephone 08009700985.

Invest in your happiness: Buy a house!

The Office of National Statistics has declared that owning a home makes you happier based upon its first national subjective well being report. Many of the entries are not surprising e.g. just under half of people not in employment scored themselves as less than 7 (almost twice the amount of people with work) whereas having a partner gave more scores of 9 or 10 when compared to those who are divorced, widowed or single.

80% of adults that owned a home ranked themselves with a medium to high level of happiness which is quite a lot more than the 68% that don’t. Suggesting that some forms of  happiness can be derived from getting involved with property, despite the recession.

This aspect of the report depicts a British desire to own a home as many Britons aspire to buy property, yet despite general belief, the world wide economic crisis may actually help achieve this dream.

In recent times the pound has steadily been growing in strength, so when compared with the euro this month, buyers interested in European property have been getting the more for their money then they have been for the past 4 years, especially in countries with prices that have drastically fallen e.g. Spain.

"These factors, together with historically low interest rates, are making it more affordable to buy in Spain right now," says Clare Nessling, Director of Conti - Overseas Mortgages, which has seen enquiries for Spanish mortgages increase by a third in May and June this year. "And signs that the market is improving are starting to lift the confidence of prospective buyers."

If you want to find out more about investing in overseas property or taking out an overseas mortgage, get in touch with Conti, via our website (www.mortgagesoverseas.com ) or by telephone 08009700985

Frequently Asked Questions Conti - Mortgages Overseas

Frequently Asked Questions

Conti - Mortgages Overseas

I have never heard of Conti, are you safe to deal with?

Conti is the UK's leading independent overseas mortgage specialist and over the last 14 years has arranged thousands of mortgages for satisfied customers. As we are a mortgage broker, we are bringing applicants and lenders together, therefore your mortgage and property are with that lender, not Conti.

Can I rent the property?

Most lenders we work with do allow the rental of a property they are mortgaging. Certain conditions may apply and can vary by lender

How do I get good Legal Advice?

Conti works closely with 2 excellent law firms that specialise in the legal matters related to purchasing overseas. You can find their details on the Other Services page of our website to contact them directly and independently from Conti

How long will I have to wait to find out how much I can borrow?

Conti offers a free 'decision in principle' service, where you can find out how much of a mortgage is generally available to you. This service can be accessed via the website (click here) and takes no more than a few days

Are there ways I can use my UK property to fund the purchase?

At Conti we believe there are significant benefits in having a mortgage through a lender based in that country. However we often have clients who reduce the size of their required mortgage by putting down a larger deposit. This can be facilitated by using the UK property to raise money against. Conti can certainly assist you with this and can find more details on the Other Services page of our website

How long does it take to arrange a mortgage?

This can vary significantly by country and mortgage lender but broadly Conti is able to process the application within a week, subject to the applicant being able to provide all the details we need. It is then submitted to the lender for approval

How do I apply for a mortgage?

Simply click here or call 08009700985

What are the advantages in taking out an overseas mortgage as against raising equity on a property in the UK?

The main advantage of taking out an overseas mortgage is the lender will carry out checks on the property such as an independent valuation. The lender will also ensure clients have clear title and the property is registered in the clients' name upon completion.

Raising equity on a property in the UK may seem straightforward but buying an overseas property in 'cash' could present problems for the buyer if they do not ensure independent checks are carried out on the property. Sadly, all too often we hear of cash buyers where the heart rules the head and basic checks are overlooked, leaving them with a raft of problems such as boundary and title issues. Some may have bought a place in the sun but have had their fingers well and truly burned during the process.

Is it better to buy in the local currency or in Sterling?

Generally it's recommended to take out a mortgage in the same currency as you earn where available. However, if the intention is to rent out the property it may be beneficial to take out a mortgage in the local currency to avoid currency fluctuation costs.

What additional costs above the purchase price should I allow for?

This does depend on the country however it's usually best practice to allow for additional costs such as Legal fees, local or government purchase taxes, arrangement fees, surveyors costs, title searches and deed amendments etc. We generally suggest our clients allow an additional 10-15% on top of the purchase price to allow for these 'extras'

How much do you charge for your services?

Once you are happy with the quotation and wish to proceed we charge an administration fee of £95 for French mortgage cases and £145 for the rest of the world. We then earn commission from the lender that funds the remainder of our costs for processing and submitting the application. In some instances the lender either does not pay a commission or only pays a reduced amount. In these instances we do charge you a completion fee. Clients are always made aware of this at the quotation stage

How will I know how my mortgage is progressing?

A dedicated adviser will handle your mortgage application and will provide regular updates. You can also track the progress of your mortgage online at your own convenience.


For any further information on buying a property abroad, taking out an overseas mortgage or general help and advice, please do get in touch with Conti - Mortgages Overseas either by our website (www.mortgagesoverseas.com) or by telephone 08009700985

Expats: Handy hints and tips for moving abroad

If you want to buy a house abroad and think that an international money transfer would be the best way to fund it it would be worth reviewing the rules for import and export of your possessions.

Everyone has those items that hold huge sentimental value, be it a wedding video, family photo albums, a toy rabbit or a penny you found on the floor the day you won the lottery (I wish). So you should try to be aware of the sometime strict rules that  accompany the process of moving all your things abroad. It always pays off to be as informed as you possibly can.

For example, the transport of vehicles is often tightly regulated. You need to check on the age of car, whether it complies with local maintenance and emission standards among other things to ensure that you can import your vehicle with minimal hassle.

Pretty much all countries will have a list of forbidden objects that will vary from place to place so it’s worth double checking with a relocation expert early on and putting in a little bit of time and effort into research, as you never know what may be considered dangerous in another country. Another mistake people often make is with electrical items. There’s a possibility that your electronic goods won’t work abroad if there’s a significant difference in power or voltage.

It may seem obvious ( some people do forget!), but you should also ensure that any important documents, e.g. your passport, are in a secure yet accessible location. As it would be a pain to remember that your passport is hidden away with your china at the other end of the moving vehicle buried beneath 2 tonnes of old clothes, books, furniture and cuddly toys.

Clare Nessling, director of the UK’s leading overseas mortgage specialist, Conti endorses the use of meticulous planning when moving overseas. Since, with the economic recession, investors making the most out of low property prices overseas may be caught out and have their dream move postponed if they haven’t followed protocol to the letter. However, with common sense, helpful advice, support and a bit of expert knowledge, there’s no reason why moving to your dream home abroad can’t be an efficient experience with minimal hassle.

If you’re planning on moving abroad, buying a home overseas or are thinking about taking out an overseas mortgage, get in touch with Conti - Mortgages Overseas by exploring our website (www.mortgagesoverseas.com )

Top tips for buying an overseas property

Top Tips for buying an overseas property

Buying a property abroad is an exciting prospect, but one important rule applies - don't let your heart rule your head. The principles you would stick to in the UK also apply when buying overseas.

Follow Conti's 'Top Tips' to ensure that your buying experience is as hassle-free as possible.

1. Contracts
Never sign a contract that you do not understand (e.g. if it's in a foreign language). If two versions are provided, i.e. English & local language, ask your solicitor to confirm the English version is a true translation.

Always read the contract! Ensure you are fully conversant with the terms and conditions you are about to agree to. Specific points to be clear about include:

•   What deposit is required? Is it refundable and under what circumstances?
•   For new properties, what stage payments are required and when?
•   What is included in the price and what is the cost of the extras?
•   Check the due completion date

2. Arranging Finance
If you require mortgage finance, obtain an 'Agreement in Principle' for your mortgage before agreeing to purchase the property, or before signing any contracts and paying a deposit.

If you are arranging finance on the property, ensure that this is stated in any contract and, where possible, seek an 'opt-out clause' if the loan is not agreed (which will ensure any deposit paid is refunded).

Remember your overseas  mortgage will probably be in the local currency and you must consider the impact of fluctuations in exchange rates. However, if the intention is to receive rental income from the property, this may be in the local currency.

3. Specialist Advice
Always ensure that you seek specialist advice from independent solicitors, valuers, architects and surveyors before considering a purchase overseas. They should be proficient in your chosen country's laws and processes and also know the specifics involved in buying a property there. It is essential they confirm to you that all required permissions, licences and planning consents have been obtained.

4. Valuation
Before proceeding with the purchase (especially with a re-sale property, regardless of age), ensure an independent valuation of the property is carried out, which should point out any problems with the property - e.g. subsidence, damp, wiring defects - and could also highlight any possible boundary disputes.

5. New Build
If buying from a developer, what's their track record and how long have they been trading? Are references available from previous buyers? Check comparable properties in the area and any re-sales offered on the same development.

If the developer mentions 'rental returns', what are these based on? Check they're feasible and have been achieved in the past.

Before making any commitment, try to give yourself a `cooling off` period if you see a `must-have' property and are tempted to put down a deposit there and then. You must be sure that you're making the right choice.

6. Title/Property Ownership
Does the developer or seller have full title to the land or property? Ensure you do not inherit a debt on the property before you purchase, which your solicitor should also be able to check. For example, if the developer has borrowed money to build the development and this amount has been allocated against each plot as additional security to the developer's bank.

7. Location, Location, Location
Conduct thorough research about local facilities and transport. People gravitate to locations with a nearby airport, especially if it's served by a budget airline. But remember there are no guarantees that cheap flights will continue indefinitely in one location. Proximity to basic facilities like restaurants, shops and a beach are also important.

Talk to people who already live/own property in the area you like to get a better understanding of what it's like to live there. And consider the property off-season - many resorts (beach and ski) are seasonal and practically shut down when the tourists return home.

8. Local Money
Open a bank account in your chosen country and, where relevant, ensure you obtain a Certificate of Importation for the money you bring in from your home country.

Set up standing orders in your local bank account to meet local bills and taxes. Failure to pay your taxes in some countries such as France, Portugal and Spain, could lead to action by the authorities.

9. Extras
Bear in mind that bills don't end at the asking price. Lawyer's fees, IVA, local and national taxes, insurance, etc must all be met in your host country and can often add at least a further 10% to your cost of acquisition. Ensure you are, therefore, aware of the costs charged by the legal and government authorities for purchasing a property in your chosen country.

10. Tax
Check the inheritance and capital gains tax laws of the country where you are buying. For example, in France your children automatically inherit rights to your house; your estate may not automatically pass to your spouse and you may, therefore, need to compile a separate will.

If you take a mortgage out on a property in France or Spain, it may reduce your inheritance tax liability as there is a debt on the property.

If you rent out your property you will be liable for income tax

Conclusion
Remember - remain clear about your objectives. You must be sure about why you're buying and what you're hoping to achieve. Is it for retirement purposes, purely for holidays, or an investment? You may be undecided, e.g. had planned to buy in Spain for holidays and eventual retirement, but now have decided to go for an emerging market like Montenegro, where you hope to profit from the investment. Can you really afford the risk associated with this change of decision?

Conti specialises in arranging mortgages secured on overseas residential property in more than 45 countries. For information, please visit www.mortgagesoverseas.com