Investors considering buying or remortgaging on the Continent should move quickly to avoid a further interest rate rise, according to Savills Private Finance International.
The European Central Bank held rates at 4% earlier this month but Savills says there is good chance of a rise to 4.25% in September. Savills says some overseas lenders have already confirmed an increase in rates of at least 0.2% from next month, but borrowers could beat a potential rate rise by taking up a fixed rate deal now. Miranda John, international manager at SPF, says: “It is possible to fix for long periods of up to 20 years but there are early repayment penalties during the fixed phase so this option isn’t for everyone. It might make sense for long-term investors though.” Savill...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
