UK foreign mortgage demand up 8% a year

British overseas mortgage demand has risen 8% in the last year, says a leading agency.

Spain still remains top, with 45% demand in Quarter 2, 2015, although that is down 9% on the first quarter, according to figures from overseas mortgage specialist, Conti.

France is in second place with 31% of inquiries, followed by Portugal on 18%. Investment in all three countries has been buoyed by the growing strength of the pound against the euro, which recently hit a seven and a half year high and is making property around 10% cheaper for British buyers. A €200,000 holiday home now costs £142,857 compared with £158,228 a year ago, a saving of £15,371 on currency rates.

Conti Director, Clare Nessling, says, “With the strong pound boosting buyers’ budgets, a little slice of life overseas is proving to be even more tempting, especially when you compare the cost with overheated parts of the UK market. Record low borrowing rates and bargain prices are also luring investors to overseas property markets, with a sizeable shift in interest for Spain in particular over the last six months.”

Prices of Spanish property is still falling overall, according to the latest Spanish Real Estate Trends report from ST Sociedad de Tasación (ST).

The average price of new and resale residential property dropped 3.1% in the year to June 2015 to €1,284 per square metre and fell 2.4% in the second quarter of the year, and is the second quarter running to see falling prices.

Many British buyers who are looking to invest in Spanish property are gaining increased confidence and those who have been putting their plans on hold are now considering making a move in order to benefit from bargain prices, says Conti.

Meanwhile, former UKIP MEP and TV chat show host Robert Kilroy Silk is selling his Spanish 10-bedroon villa and estate, near Casares, for an estimated €12 million.

The 368,000 square metre estate, which includes two adjoining cottages and two swimming pools,is being marketed through Villas and Fincas estate agent, the Olive Press reports. The main picture is from