How is the interest rate structured?
The interest rate is linked directly to the currency’s equivalent of the London Interbank Offered Rate (LIBOR). The lenders will charge a fee to cover costs and make a profit. The margin is negotiable and dependent on many factors, including the loan amount, risk profile of the applicants and the loan to value (LTV) ratio. The margin is generally between 1% and 1.75%. A competent broker should be able to negotiate favourable margins and costs for you.
