The wealthy property buyers are being targeted by some of the lending institutions in the UK, signalling some return to normality within the finance sector. This is being done through some of the high street lenders private banking facilities.
This sudden turn of events has come about as banks are keen to get back on track with some of their lending targets and big hitters can help bridge the deficit that developed during the darkest hours of the credit crisis.
LLoyds has aggressively cut its rates via its Cheltenham & Gloucester lending arm with a 1.9% cut in rates, allowing buyers 40% deposit, looking to buy property over €1,100,000 can expect a rate of 3.99%.
This is more in line with rates expected for much lower value purchases. I can understand why the banks are relaxing rates and encouraging wealthy buyers, with less chance of possible defaults and also jumbo loans will help them get to their projected net lending goals.
The philosophy has proven flawed in the past, as huge loans were handed out with as little as 5% deposit. Couple that with falling property prices during the Zenith of the credit crunch and you were left with a plethora of negative equity and banks looking at gaping holes in their lending book.
Luxury apartments and houses seem to be coming out on top with stronger prise rises seen within this sector. However our sales have been through 100% cash purchases and although we are focussing on the Spanish market, where mortgages are still notoriously difficult to get it does show that most people are shying away from finance of any stripe.
The market in Marbella, athough improved, will only start to gain real traction when a reasonable level of mortgage acceptance is seen once again.
