What are the arrangements for mortgages?
It is typically possible to borrow up to 80% of the propertys value on either an interest only or more usually a repayment basis. In certain circumstances it is also possible to borrow up to 100%. A typically repayment period is 20 years and in addition to variable rate borrowing, it is also possible to fix the interest rate for the whole of the loan period. As a very rough guide, a yield of 5% with a 30% deposit would be capable of repaying the loan in 20 years. Clearly the guaranteed index linked income, together with fixed repayments, provides a high degree of financial certainty. Euro mortgage rates are currently around 3.5% variable or 3.75% fixed at present. This clearly compares nicely with the 4-6% income.
