Mortgage in Egypt

[wemyss1960]

Here is some recent contact I had with an overseas mortgage broker.

Dear Stuart,

Further to our conversation please find a copy of our pre application form, basic guide to mortgages in Egypt and a copy of our terms of business.

Once we receive the pre app we run an affordability test and if possible issue a confirmation along with terms and conditions. Clients must use our lawyer who carries out the legals and due diligence. His costs are approximately £1,000 per property.

Our fees are £395 per property.

I have sent your details to Nett, our liaison manager and she will contact you soon regarding our introducer agreement.

I look forward to working with you.

Best regards.

Stephen Marcon.

_________________________________________




Dear Stuart


I understand from one of our Advisers that you are interested in being an Introducer for Connect and we would be pleased to welcome you.


I have attached a copy of an Introducer Agreement, signed by our Director, which will need to be completed and signed by you and a copy returned to us (preferably by email to me, or by post/fax to the office address).

Included is information about my role and how I can assist you, how to introduce clients to us and about the web tools that we can offer should you wish to take advantage of them.


I look forward to hearing from you.

Kind Regards
Jeanette Potts
Client Services (Introducer Liaison) Manager
)

------------------------------------------------

It is not possible to attach any docs as I have not posted enough.

check their website

 

[Peter Mitry]

Hi Stuart what assurances do you have that this company will be any better than Egyptian Mortgage Alliance? When asked the question by RA EMA could not cite one single mortgage offer from an Egyptian bank.

 

[awahee123]

It would be good if they did provide mortgages.Is their main office in the Uk or is this a branch?.

 

[wemyss1960]

They are UK based with UK and International mortgage advisers.

Typical mortgage
deal for: EGYPT
Typical Rate : From 8%
Loan purpose : Residential and investment
Min Loan : N/A
Max Loan : 60% loan to value.
Term : 10-15 years
Max Age : 65
Repay method : Capital and interest
Currency : Egyptian Pounds
Additional Info : To obtain pre approval, proof of land ownership required and name of developer.We have Egyptian lawyer who will carry out due diligence.



regards

Stuart

 

[dave99]

Nothing here to prove anything

Nothing here to prove anything is any better than we already know.

Anyone can start the process but I doubt this will get very far yet.

.
.

 

[wemyss1960]

Does you know anyone who has tried for an egyptian mortgage?

If so,did they fail the affordability criteria or was it a poor or no credit history?

Did they really have any money?

I'm not really sure why anyone with enough equity would not remortgage their uk property? Criteria not so strict and rates are much better.

I have just completed 2 remortgages for friends buying in Palm Beach Piazza!

regards

Stuart

 

[awahee123]

I think for Europeans this would probably be the best way so far to remortgage on their current property,probabaly faster as well.

 

[Peter Mitry]

Many Brits looking to invest in emerging markets are often stretched at home on the lending criteria and prefer to look for mortgage finance in the country they are buying in.
Although the mortgage rate on Stuarts example looks high at 8% am I right in thinking that as this is an Egyptian pounds mortgage the borrower would benefit from the strength of the pound when transfering funds?

 

[propertastic]

I can't see how anyone can offer mortgages in LE at 8% when the interbank rate is currently at 8.75% - the bank offering it would be losing money on the deal.

If the mortgage was in GBP, USD or EUR, then it would make sense, but not in LE.

 

[dave99]

Lending Criteria

Many Brits looking to invest in emerging markets are often stretched at home on the lending criteria and prefer to look for mortgage finance in the country they are buying in.
Although the mortgage rate on Stuarts example looks high at 8% am I right in thinking that as this is an Egyptian pounds mortgage the borrower would benefit from the strength of the pound when transfering funds?

From what I've been told the criteria for lending in Egypt will not be very different from other countries in that the whole financial circumstances of the potential borrower will be taken into account so being strectched at home (UK) will cause problems in other countries.

The only value that I can see in taking a mortgage in Egypt is to get a lower rate of interest than you can get anywhere else, by using the new property as security - if this is not possible then there is no point even going down this route.

Most mortgages around the world will only offer to lend of something that exists, which is no good for buying off-plan. If the property is just about complete AND has been registered then it may be worth the effort, or if it's the only way to raise a large amount of cash (maybe over £50k).

If a potential buyer thinks that getting in early (say 18 months before completion) is worth doing by borrowing, then a mortagage is a non-starter.
A UK personal loan, or re-mortgage on other property is the only option if cash is not to hand.

Payment profiles from the developer often only cover a period of say 18 months so the payments are relatively large.

.

 

[awahee123]

I think as we've all said before the best route is to get a remortgage on your original property in whatever country you live in,it certainly looks like the best way forward.
The main problem is always going to be the lender not wanting to lend until the property is complete,so it's really any good for resale properties, as most off plan developments would have little left to sell by the time the development was complete.That is my personal opinion.What does anybody else think?.

 

[propertastic]

Remortgaging is definitely the way to go for those people who have existing property - it will be much simpler to arrange and interest rates will be a lot lower.

You're right about the offplan situation but, if the figures are right that the best mortgage that will be available is 65% LTV, then this is what most buyer's would need upon completion.

If you consider that most developers want 50% upon completion and then the buyer will need to pay for legal, air conditioning and furniture at that point, then the 65% would be roughly how much the buyer needs when he or she needs it in order to complete a purchase providing that he or she is able to come up with the first 50%

I have seen several surveys during 2007 that says that there are a lot of younger buyers who can't get into the property market in the UK who are interested in buying abroad. For them, getting an Egyptian mortgage would be their only option.

 

[awahee123]

Hi Nick,

It is catch 22, if you have a property to remortgage definately the best way forward.
If you are a first time buyer you do face certain problems especially if you need a mortgage.Maybe some of the larger developers will be in a position to arrange 10 or 15 year mortgages directly,However this is probably one for the future,they will only look at this route once the Cash buyers have dried up.

 

[jeremy bright]

looks like there now is mortgages available to non Egyptians property companies are offering them now like this one i have found


Mortgages

For those investors who wish to take delivery of the apartment and who may need financing, mortgages for up to 65% LTV can be arranged and with competitive interest rates. All mortgages are subject to status and will be delivered by several local banks by our associate mortgage brokers in Egypt.

 

[scubadoo]

Mortgages

For those investors who wish to take delivery of the apartment and who may need financing, mortgages for up to 65% LTV can be arranged and with competitive interest rates. All mortgages are subject to status and will be delivered by several local banks by our associate mortgage brokers in Egypt.

Tell us more, what have you found??

 

[queenie40something]

Hi I also received an email that contained

Following on from our previous emails we are delighted to announce that before the official launch of this exciting new development there will be a number of apartments where we can offer either staged payments or a mortgage.

This is excellent news as it means clients who did not have access to capital to purchase outright, and thereby get in at the lowest possible price ,can now do so and obtain best possible plots and price.

This is for Marsa Alam development.

 

[J4hurghada]

For all us that have bought that is great news, with morgage's being avalable it will certainly put the prices up.

 

[NICKY P]

Ive got 10k-12k to use as a deposit but i dont want to remortgage my property in the uk.Has anybody got any idea how to finance the rest while paying installments with rental income

 

[queenie40something]

Ive got 10k-12k to use as a deposit but i dont want to remortgage my property in the uk.Has anybody got any idea how to finance the rest while paying installments with rental income

Hi Nick - can you not get a personal loan??

 

[cin7166]

Hi Nick,

I'm going for a personal loan for my one, 6.4% so over two years I'm only paying around £1300 back on interest.