Conti launches remortgaging service - 28th April 2008

Conti Financial Services, the UK’s leading overseas mortgage specialist, has launched a remortgaging service to owners of overseas residential property in 15 countries across Europe, Africa and the USA.

Remortgaging an overseas property can help to pay off UK or foreign debt, finance further property investment or possibly reduce one’s future inheritance tax liability. Conti says it also offers an alternative to people who feel under pressure to sell their property abroad because of the current "credit crunch". The strong euro means demand for European property has decreased, so owners are finding it more difficult to cash in their asset. One solution is to remortgage their property in Europe, where interest rates are lower, and use the currency-boosted proceeds to repay debt in the UK.

This is the latest development in Conti’s expansion plans for 2008. It already has 14 years' trading experience in offering expert packaging services for loans secured against overseas residential property, and can arrange finance on holiday homes, investment and retirement properties in over 45 countries, with more than 225 mortgage products currently available.

If someone owns a property in any of the countries below, and that property has no existing mortgage debt, or has an existing mortgage but the property has increased in value since it was purchased, they may be able to remortgage in order to raise funds through Conti.

Countries where remortgages are now available via Conti – subject to a client’s current financial situation and valuation of the property

Countries with Loan to Value:

Greece, Portugal, Spain - Max 80%
France*, Germany**, Ireland***, Italy, Monaco, Turkey, USA - Max 70%
Bulgaria - Max 75%
Cyprus - Max 60%
Canada - Max 65%
Cape Verde - Max 85%
South Africa**** - Max 50%

*Possibly up to 85%, if the client has an existing mortgage in place and dependent on the use of any additional funds; **Max 70% Employed or 56% Self-Employed; *** Remortgages are available between 70% to 80%; **** Any funds raised would normally have to remain in South Africa, subject to local Exchange Controls

Conti says that the biggest reasons for people to remortgage their property abroad (other than for home improvements) are:

• To repay existing debt in their home country by releasing equity from their overseas asset. For example, they could set it against their UK property in order to help get a better mortgage deal as lenders tighten their criteria.
• To reduce current monthly repayments on their overseas property by remortgaging it with a more competitive rate of interest (if available).
• To buy another property or provide the deposit for a property purchase in their home country or overseas.
• To possibly reduce one’s inheritance tax liability, where applicable, in certain countries (subject to local tax legislation). For example, in France and Spain, it may reduce your liability as there is a debt/bigger debt on the property.

Simon Conn, Conti’s Sales and Marketing Director, says: "We’ve built up a large portfolio of overseas lenders who not only assist with mortgages for house purchase, but can now also assist our clients with the re-financing of existing residential properties in fifteen countries and we hope to expand this list in the future.

"Despite the current 'credit crunch' and the strength of the euro, the market for overseas property is still buoyant and the majority of our local overseas lenders have not made changes to their lending criteria."

Additional options through the remortgaging service at Conti are:

• Loans with higher LTVs may also be available for home improvements to the existing overseas property.
• By combining one or more overseas property (plus possibly an existing UK property) 100% + mortgages may be available for any new property.

And in some countries 80 per cent of the rental income from an existing contract can possibly be taken into account.