Brexit has further affected those looking to purchase a property outside of the UK.
Prior to the property bubble burst in 2007, Britons eager to snap up a home in the sun on the continent were given access to a huge range of mortgages. But over the last decade, the market has changed more than a little. Today, the debt crisis and the Brexit vote have made it more challenging to secure the finance you need to put your name on a stunning second home, whether it’s on the beautiful coast of Spain or in an authentic village in Greece.
The first factor to hit the lending market for Brits seeking to buy abroad was the debt crisis. In 2007, property prices were on the rise and developments were springing up across Europe in the most popular spots. But the financial crisis led to prices plummeting, planned construction work being halted, and left families unable to make their repayments. It meant that banks have become more cautious and risk-averse, making it more difficult to find a willing lender and in the wake of the crisis the number of Brits buying homes in Spain halved.
Uncertainty and the weakening pound means you’ll get less for your money, with prices rising by about 10% since the referendum. If you thought your budget would be stretched before Brexit, you’re going to face further pressure now and it could get worse when you consider currency fluctuations.
Coupled with the risk-averse attitude of the banks, the impact of Brexit is affecting Brits seeking to lend to buy abroad.
The good news is that there are still options for Brits looking to buy that dream holiday home and it can still be a worthwhile investment option if you pick out the right property. Whether you’re choosing to buy a property to turn into a family home or to rent out on the market, there are still lenders that are open to you.
EU Property Solutions can act as your advisor for securing either a residential or commercial mortgage. Free from conflict of interest, we’re able to source the best lender and terms with your situation in mind. With our expertise and industry knowledge, it won’t be too much trouble to find a lender that will offer the backing you need to buy abroad.