Well said Alison, it has been a really interesting thread and I'm sure many forum members have learnt a lot from it and like me will invest sooner rather than later! TC

Can anybody supply an independant solicitor details with knowledge of this development/area?
Im awaiting contracts.

Perhaps I should clarify a little further. I have no intention to cast doubt on the veracity of Dan and Reds claims to have in place a mortgage product with HSBC on the terms above. They may sincerely believe they have.

However HSBC's mortgage business for Egypt is a headed up by a lady called Maha Abdel Razek and the info in my earlier posts on terms etc came from her directly at a meeting I attended with her last week and a follow up email I received from her. I'm inclined to believe her.

I have not seen the Hania contract into which the HSBC mortgage is "written" but can only assume that if specific terms on fixed rates of 6.9% for 3-15 years being available are referred to in writing then one of two scenarios is possible. Either the developer is subsidising the mortgage himself or there will be something in the small print of the contract which gives the developer an out if those terms do not ultimately materialise. Either way buyers should be aware that HSBC Egypt is not be offering those terms to foreigners at present, and from what i was told has not done so in the past. The max term for non egyptians is in any event 10 years. People will obviously do their own research and draw their own conclusions.

I do believe however that buyers should not be overly concerned because the number of mortgage products is increasing and mortgages from several other providers may be available by the time of completion.

Dan is this a fixed rate of 6.9% of the total amount loaned throughout the mortgage term? If this were the case the APR would of course be much higher. If this is a genuine offer with an interest rate of 6.9% on the decreasing balance then this is a major breakthrough and you are to be congratulated on securing it. Can you please clear this up for the benefit of all forum members?

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Peter.

My intepretation is 6.9% flat rate per annum for the life of the mortgage, be it interest only or repayment (thus on a reducing balance). Hopefully Dan will correct me if I am wrong.

It looks like a standard mortgage agreement to me. Again as mentioned earlier there will hopefully be a lot more products on the market once Hania is complete, so purchasers will have more choice in terms of the mortgage product and lender they can go to (hopefully the international credit squeeze would have eased by then)

Rgds
RED

May be you check Ziad on the ll thread he is perfect

Thanks for the referal realestate, does he have his own thread/site?
Can anyone else recommend him as well or using him already?

Red

If youve any concerns i suggest you send the mortgage agreement (which i havent seen) by email to mahaabdelrazek at hsbc dot com and ask her to confirm these terms are in place for Hania buyers subject to status. Perhaps you would publish the response on the forum and that will clear the matter up once and for all.

I believe she will confirm the following are HSBC's main terms at present

-Max term for non egyptians 10 years (and last payment at aged 65)
-Currency USD or Egyptian Pounds only
-2% spread over 1 year usd libor (annual reset- which means interest rate resets each year at 2% over 1 year usd libor- ie a variable rate loan) - With USD 1 year libor at approx 3% at present this would imply a rate of 5% for the first annual period (note well below 6.9%)
-Completed projects only subject to DD at completion

As Peter says if Dan has managed to secure better terms than these then he is to be congratulated

Morning Sharkboy,

Here is the link to Zeiad's thread: http://www.totallyproperty.com/egypt...-egypt-25.html

He comes highly recommended by Alison (queenie40something) and is taking on more and more clients from the forum. Me next hopefully!

Regards
Linda

Looks like we are all waiting for contracts now, Don't know if to go with the lawyer the developer recommends or find a different lawyer. Anyone aware of what the standard charge is for the cost of a lawyer with regards to purchasing in Egypt???