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Nueva Andalucia Rises From The Shadow Of Marbella

Nueva Andalucia Rises From The Shadow Of Marbella

 Overseas Property In The Spotlight

Perfectly located just ten minutes from the famous Spanish resort town of Puerto Banus, Nueva in Andalucia has become increasingly popular with UK property investors looking to purchase a property in the Marbella region.

By day and by night, the area around the seafront has a varied choice of cafes, bars and restaurants, where visitors can sample some of the regions superb seafood, or simply enjoy a glass of wine and watch the world go by.

There are a number of older urbanisations throughout Nueva Andalucia, which consist of apartment blocks and town houses, all of which are very affordable.

The town’s coastal location, just over an hour in a car from the airport in Malaga, which has made it a popular destination for holidaymakers and foreign residents alike.

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Great news for international property investors, the strength of the UK pound (GBP)proved too much for weaker currencies and finished higher in March against all major currencies, according to the Currency Index.

Good exchange rates mean overseas buyers can now find property investment bargains in many countries.

The Currency Index have confirmed the opportunity for UK based international investors after examining local property markets around the world.

Excellent prospects for property investors include Australia and New Zealand where residential property price drops of 5.38% and 5.06% have respectively been observed and the Australian dollar currently has the most improved exchange rate, at over 4% cheaper.

In Europe, Greece has shown to have seen the worst property price falls with residential accommodation values 6.3% cheaper than previously. Spain has also seen property prices fall by 3.3%

Sterling (GBP) has become a strong currency and UK based property investors should be ready to cash in now whilst the exchange rates are good, there are some great bargains to be had, all you have to do is look…

Follow the link for listings of overseas property sourcing providers


Europe want control of UK mortgage lending

European Union Want To Regulate UK Buy To Let Mortgages

Eurocrats no longer concerned with the current Eurozone financial crisis, are sticking their noses into the UK Buy-To-Let mortgage market, with the proposal of a new EU Directive on credit agreements relating to residential property, formerly known as responsible lending and borrowing.

UK Landlords who had been investing in property prior to the 2007 credit crunch have witnessed the dramatic fall in the number of buy-to-let mortgage products made available since the peak of the market in July 2007.

Today (NOV 2011), investors only have access to a paltry 15% of the 3648 buy-to-let mortgage products that were available before the full impact of the credit crunch.

Now, to make matters worse, the European Union want some form of control for the UK Buy-To-Let mortgage market, as part of their proposed directive on credit agreements, reducing the already limited range of UK BTL mortgage products available still further.

The EU has set out plans to include UK Buy-To-Let mortgages with this regulation, changing the way property investors and landlords are assessed by lenders for their BTL mortgage loan.

Currently in the UK, the affordability of a Buy-To-Let mortgage is measured individually, by assessing the rent generated by each property against financing costs.

Typically a mortgage would be considered affordable by the lender if the gross rent covered between 120 – 135% of the finance cost of the mortgage.

This excess cover is meant to ensure that even if the interest rate rises or the landlord suffers a rental void they are still be able meet their mortgage obligations in the medium term.

In general it is a sensible system that aligns the affordability of the finance to the cash generative qualities of each investment property.

It also allows landlords on modest incomes to be able to purchase a property without having to rely on a substantial personal income to prove they can manage their investment.

This method of measuring affordability was only introduced in the mid 1990’s thanks to a number of lenders getting together to introduce the Buy-To-Let initiative to the property investing public.

Now, Europe wants us thrown back into the pre BTL lending dark ages.

The European Directive proposes that BTL lending will be regulated in the same way that residential lending is at present.

Under the new proposals, lenders will no longer be allowed to take into account rental income when assessing the affordability of a buy-to-let loan. This would have massive implications for the 1.3 million small landlords, many of which could face difficulties in refinancing their loans under the revised criteria.

The proposals are to be voted on in early 2012 and would become law by 2013 but who is the legislation trying to protect?

The latest figures from the UK buy-to-let mortgage market show that the current system is actually resulting in a lower rate of arrears on buy-to-let loans than on residential loans. (Currently 2.14% compared to 1.91% for buy-to-let loans).

These new European directives go against current UK thinking, with the Council of Mortgage Lenders, (CML) against regulation and institutions such as the Building Society Association are completely against the new European proposals. Even the UK Treasury examined the need for Buy To Let regulation 2 years ago and decided against taking any action.

The new European Union mortgage directive is primarily concerned with the protection of consumers and including buy-to-let is unjustified.

A buy-to-let mortgage is a commercial transaction and most landlords have enough knowledge and experience to make business decisions without protection from the law and without evidence of detriment to the consumer it is unnecessary to impose such a limiting European regulation.


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