September saw a record number of mortgage intermediaries signing up for overseas mortgages, according to ContiRegistrations with the company increased by 69% last month compared with the previous monthly average for this year, bringing the grand total of registered intermediaries to more than 8,500.
Conti says that despite the difficulties of the UK property market, demand for homes overseas is alive and well for British investors, and it appears that an increasing number of people are seeking a little slice of life overseas. The company experienced a 33% increase in enquiries from prospective buyers during September, with France, Spain and Portugal still topping the list of hot spots. The holiday season may be over, but it appears that trips abroad this summer have inspired many people to buy their own place in the sun.
Bargain prices and low interest rates are making it more affordable to buy property abroad, and the growing strength of the pound against the euro is boosting the budgets of those looking to buy property in the more traditional locations like Spain and France. Easy access, together with good rental opportunities are also adding to the attractiveness of these locations.
Perhaps that’s why so many intermediaries are tapping into this market and considering it seriously as a new source of revenue. Despite the situation in the UK, brokers might be pleasantly surprised by the healthy appetite of overseas institutions to lend to foreign investors.
Clare Nessling, director at Conti, says:
“If you’ve not yet considered the overseas mortgage market as a new source of income, it’s an excellent time to do so. Commission rates start at 25 per cent per case, but higher levels can be achieved when volume increases or through membership of a qualifying group or network.”