Best buy rates for remortgaging overseas property - now even better! - 9th February 2009

Conti Financial Services, the UK's leading overseas mortgage specialist, is now offering overseas property owners remortgage deals from as little as 2.49%.

More than two million Britons currently own a property abroad and Conti says that the number of clients looking at the refinancing options available in many overseas markets is increasing, particularly in the eurozone, whether for French property mortgages, mortgages in Spain or property loans in other countries. Not only are the rates getting better and better, but the strong euro means that equity in second homes abroad is now worth a great deal more when converted back to sterling.

Best remortgage deals for overseas property
Clare Nessling, Conti's Operations Director, says:
"Many people 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 their loan-to-value ratios, especially if they're hoping to switch to a new mortgage deal.

"Others simply want to switch their overseas property mortgage to a significantly cheaper rate and benefit from lower monthly repayments. These new rates offer fantastic value."

Conti is not suggesting that overseas property owners should increase their level of debt; rather that they should examine the cost of their existing debt and whether that cost can be reduced. If their existing overseas property has increased in value since they purchased it, this could be an opportunity to maximise that gain by removing some of the equity and converting it to sterling.

Mortgages for France, Spain, Italy and many other countries
Conti always recommends that a mortgage overseas and the income used to service the mortgage repayments are in the same currency, so that you're not at the mercy of fluctuations in exchange rates.

If, for example, you're renting out the property and receiving rent in the local currency to meet the mortgage repayments in the same currency, movements in exchange rates won't affect your ability to keep up the payments. And in some countries, 80 per cent of the rental income from an existing contract can be taken into account when remortgaging the overseas property.

Another benefit of remortgaging an overseas property is that it's possible to reduce your inheritance tax liability. In certain countries (subject to local tax legislation) such as France and Spain, it may reduce your liability as there is a debt/bigger debt on the property.

Conti's remortgaging service is available to owners of overseas residential property in 15 countries across Europe, Africa and the USA, including mortgages in France, Italian mortgages and Spanish property mortgages. For more information, please visit www.mortgagesoverseas.com