Moscow. June 10, 2010. International mortgage broker Lowell Finance release a regular report for the April-May, which provides information about the dynamics of changes in interest rates on overseas mortgage for Russians, and also provide information about the preferences of Russian buyers towards the countries and type of properties when using a mortgage financing.
Changes in interest rates on mortgage loans in Europe still remain insignificant. Reduction of rates ranged from 0.10% to 0.25%, depending on the lender and the country. Activities in April and May increased, due to traditional seasonal increase in demand for overseas properties for buyers from Russia and CIS countries.
For the last 2 months the main demand among clients of Lowell Finance who use a mortgage financing when buying overseas property, was for 2 countries: France, 47% of the total demand, and country, not previously analyzed by Lowell Finance - Italy, which immediately aroused interest in obtaining a mortgage and took second place in demand from clients of Lowell Finance. Every 5-th request for a mortgage among the company's clients accounted for Italy. Interest in obtaining a mortgage also comes to Spain (9%), Cyprus, Greece, UK, and Germany, these regions act for 19% of the total demand.
France remains one of the favorites markets for property purchase with mortgage financing for Russian buyers. Fixed rates on mortgages in France for Russian buyers, currently available from 3.05%, variable interest rates depending on the bank are from 2.4% and available for up to 25 years. The maximum LTV for Russian is 80%. In April-May the main demand in France used proposals located on the Cote d'Azur - more than 65% of our clients obtain a mortgage to purchase real estate in this region, the most preferred locations: Cannes, Antibes and Nice. Paris is in interest from 22% of clients, the remaining 13% comes from Normandy, Provence and the French Alps. It should be also noted, that about 35% of clients, are buying property in France as an investment, and do it because of the stable rates in the rental market and lowest interest rates for mortgages.
In high demand Italy. More than 60% of clients of Lowell Finance obtain a mortgage to purchase property in the north of Italy on Lake Como, Maggiore, Stresa and in their neighborhoods. 25% of requests were for Tuscany, and about 13% are for 2 cities: Rome and Milan. More than 60% of clients chose as the object of financing villas and budget of purchases was more than 750.000 euro in the half deals. However, only 16% of all clients considering a property in Italy as an investment, and in 84% buy property as a holiday home.
High demand for mortgages for purchasing overseas property by buyers from Russia in 1-st and 2-nd quarters of 2010 motivated by lower interest rates on mortgages in France, Italy, Spain, UK, compared by mortgage rates in Russia between 8,5-12% in Euros. It is interesting to note, that according to statistics of Lowell Finance, more than 60% of clients have savings in Russian banks in amounts, which are sufficient to purchase a property without mortgage, but taking the mortgage is expedient in view of higher interest rates on deposits in Russian banks, compared with rates for overseas mortgages.
For additional information please contact:
+7 (495) 744-0039, Kirill Dolginskiy, Managing director of international mortgage broker Lowell Finance
Lowell Finance - the first international mortgage broker in Russia, company works with more than 85 banks and private lenders that provide mortgages for property buyers from Russia in the 13 countries in Europe and the USA
