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Overseas market protected from credit crunch? - 28 February 2008

As more statistics are published every week to worry homeowners and those who are looking to buy property in the UK, it is a relief to hear that there is also some good news to be had from statistics. It appears, from the latest survey conducted by www.holidaylettings.co.uk, that the overseas property market may be significantly less-exposed to the global credit crisis than the UK property system.

According to a survey of the overseas owners who have listed their properties on the specialist holiday rentals website, just 27 per cent of buyers remortgaged their UK property in order to raise the funds for their home overseas. In this case, with the majority of overseas buyers finding other sources of funding for their home abroad, it appears that owners are somewhat insulated from the tribulations of the finance system in the UK at the moment. This financial approach from overseas buyers will also allow them to protect their investments in the event of a crash in the UK housing market.

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This statistic indicates that overseas property buyers have used either their own savings in buying their place overseas, or have opted for local finance options to gather the funds for the property purchase. This again indicates a certain amount of insulation from the global credit crisis. In the UK we have had access to credit options with very few restrictions or controls, but in other countries, and in Europe in particular, the rules on getting and paying for mortgages are far stricter, which means that the exposure of the banking systems overseas is less-serious than it could be in the UK.

 

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