Spain
Spain continues to hold the top spot for overseas property purchases. The market has grown consistently since March 2014. There hasn’t been much diversification when it comes to the areas that are the most popular. The Balearics and Almeria have the highest demand followed by Barcelona, Catalonia and Asturias.
Lending terms:
- Maximum 60% to 70% LTV.
- Interest rates from approximately 1.35% variable above 12 month EURIBOR in the first year and 2.95% fixed over the mortgage term
Cyprus
Cyrus is becoming more popular with expats due to the great climate and low living costs. The Paphos region remains popular, and buyers tend to have a budget of between €200,000 and €250,000 that can purchase a three-bed villa with a pool.
Lending terms:
- Maximum 60% to 70% LTV
- Interest rates from approximately 4.75% variable.
France
Despite fears around Brexit, France remains a very popular destination for expats. Many Brits still choose to retire in France, and it is also a popular destination for a holiday home. The falling property prices, outside of Paris, and the record low-interest rates continue to make France an attractive destination. The Dordogne, Lot-et-Garonne and Lozere have seen prices fall by as much as 10%.
Lending terms:
- Maximum 80% to 85% LTV.
- Interest rates from approximately 1.80% variable above 12 month EURIBOR and 2.25% to 2.50% fixed over the mortgage term
Portugal
The Portuguese government has helped to increases the demand from overseas property purchasers by offering specific initiatives such as the “Golden Visa” scheme for non-EU investors and the Non-Habitual Tax Residency scheme for European expats. These incentives combined with a low cost of living and good weather have kept Portugal at the top of the list for expat properties.
Lending terms:
- Maximum 70% to 80% LTV.
- Interest rates from approximately 1.80% variable above 12 month EURIBOR in the first year
Italy
Italy remains a firm favourite thanks to its warm climate and excellent food. A wide range of property types are on offer ranging from ‘rustici’ that can be purchased for as little as €20,000 in Calabrai to ‘Casa di campagna’ which are country houses, often over three floors, costing around €750,000 when fully renovated.
Lending terms:
- Maximum 60% to 70% LTV.
- Interest rates from approximately 1.35% variable above 12 month EURIBOR in the first year and 2.60% fixed over the mortgage term
USA
Even as Americans are looking at purchasing second homes abroad due to the behaviour of the Trump administration, expats continue to buy properties.
Lending rates:
- Maximum 70% LTV (75% in Florida).
- Interest rates from approximately 5.00% fixed for the first five years
- With a deposit of 40% or more, this can reduce to approximately75%
Other popular countries
- Canada (maximum 65% LTV)
- New Zealand (maximum 70% LTV)
- South Africa (maximum 50% LTV, 70% if SA Expat)
- Thailand (maximum 70% to 75% LTV)
- Turkey (maximum 70% to 75% LTV)
Please note that interest rates and annual lending terms will vary subject to a client’s overall financial profile and property valuation.
If you are considering purchasing a property overseas, we recommend downloading our guide.
