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.

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CONNECT OVERSEAS
2nd Floor, Stirling House
21-25 Station Lane
Hornchurch
Essex
RM12 6JL

Tel: 01708 676133
Fax: 01708 438712


You may also register as an introducer and earn a little commission (proc fee)


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
07894 875669 (mobile)

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

check their website


regards

Stuart (UK mortgage broker - Primary Mortgage Centre)

(SEND ME A PM IF YOUR CLIENTS WOULD RATHER RAISE FUNDS BY WAY OF A REMORTGAGE IN UK)

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.

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PROPERTY SHOP INC. International Property Brokers
EGYPT REAL - Your One Stop Shop for Hurghada Property

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

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

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.

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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

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

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?

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PROPERTY SHOP INC. International Property Brokers
EGYPT REAL - Your One Stop Shop for Hurghada Property

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.

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EGYPT REAL - Your One Stop Shop for Hurghada Property

Author of: Propertastic's Complete Guide to Hurghada Property and Egypt's Red Sea Riviera Real Estate

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.

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