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12 Jun 2012
Mortgage rates are falling in Austria as the country's 10 year borrowing costs dropped to a record low of 2.08% last week as the markets signalled a strong vote of confidence in the Austrian economy, the Austrian property market, and its strong ties with big brother Germany to the north.
The robust economy and low national borrowing costs has led to some record deals for Austrian mortgage borrowers looking to take advantage of the Euro's weakness. Raiffeisenbank is currently lending money on residential property in Austria to UK buyers at 65-70% loan-to-values. Current variable rates are just 2.75% while 5 and 10 year fixed rate mortgages are available at Euro-era lows of just 3.5% and 4.125% respectively. All Austrian property mortgages are on a full repayment basis over a maximum of 20 years.
Commenting on the borrowing rates, Mark Warner Property (www.markwarnerproperty.com) MD Giles Gale, says "With these competitive rates and a more favourable Euro/GBP exchange rate, many of our customers are choosing to leverage their Austrian property rather than paying cash. If you expect the Euro to fall further then your debt will be slowly eroded in sterling terms. Even in the event of a total Euro breakup your property will be re-denominted in 'New' Austrian Shillings or 'New' Deutchmarks - both of which are likely to soar in value."
For further information or to speak to one of our advisors please visit www.markwarnerproperty.com
- Ends -
Media enquiries, please contact:
Giles Gale
e: gilesgale@markwarnerproperty.com
- Ends -
Media enquiries, please contact:
Giles Gale
e: gilesgale@markwarnerproperty.com