BRITS TO BENEFIT FROM EUROPEAN RATE REDUCTION

The second half of 2014 is gearing up to be a bumper year for holiday home sales in European hot spots, thanks to a fall in the value of the euro and arrival of conditions for cheaper home loans in June, both of which make buying conditions for British buyers even friendlier.

Richard Way, Editor at The Overseas Guides Company said: “The changes came about after the European Central Bank historically imposed a negative interest rate for banks keeping money on deposit, and at the same time reduced the central re-financing rate to 0.15 per cent from 0.25 per cent, which typically influence mortgage rates set by banks.

“This is the sixth ECB rate cut in the last two-and-a-half years and means the monthly payment of a tracker mortgage on a €300,000 loan by is around €240 a month less compared to in the autumn 2011. Meanwhile, Sterling has hovered around an 18-month high against the euro, adding further impetus to the buying power of Britons in depressed property markets, such as Spain and France.”

Filed under: http://www.theleader.info/article/43931/

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