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05/08/2008 00:00:00

Baydonhill PLC, the FX, overseas property and mortgage specialist, today urges British property investors to consider Euro mortgages as a potential alternative to raising equity on their UK properties in order to pay for second homes in Europe.

Lucie Jeffery, International Mortgages Manager at Baydonhill, said:

“Buyers seem to be sitting on their hands, hoping the pound strengthens against the euro in the next few months – but that’s not looking likely. But there is another option available to them – the Euro mortgage.”

“There are a range of advantages when you choose a Euro mortgage. The majority of your sterling can be left in the bank as you can take out a Euro loan with maximum LTV of 90% in France and 80% in Spain, Italy and Portugal. You’ll only need sterling for the initial deposit, notary fees and valuation fees.

“There are some great Euro mortgages on the market now. Many products are now without early redemption penalties, which means you have the option to redeem the loan at no charge after the first year, should the sterling have significantly have strengthened by this stage. Also, due to lower base rate and therefore lower repayment rates, monthly euro loans will be significantly less than they would be for the same mortgage in the UK

A Euro mortgage, for a term of 20 years (with no early redemption penalties) exchange rate £1 = € 1.25, could look like this:
- Property Cost: £ 120,000
- 80% LTV: £ 100,000
- Deposit: £20,000
- Other fees: Notary fees, valuation fees
- Monthly payments at a rate of 4.305% = € 777 = £ 499 per month

Lucie Jeffery continues:

“Eligibility in the Euro Zone is not calculated in the same way as in the UK, where income multiples are used. Debt-laden buyers may have problems obtaining Euro loans, as the standard eligibility criteria states that total monthly commitments (including total mortgage repayments and or/rental payments and any personal loans) may not exceed 33% of total monthly income. All loans are full status meaning that applicants will need to provide full proof of all income and outgoings when submitting an application.

“That said, many international lenders seem to be loosening their grip on required documentation, opening up their products to a greater market. This is in stark contrast to the UK situation (and does not include the Spanish market, which has seen withdrawal of several products, especially high LTV products).”

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Note: Photography available on request, please contact mark@rostrumpr.com

About Baydonhill

Baydonhill is the UK's only publicly listed foreign exchange and overseas mortgages specialist. Based in London and established in March 2000, the business prides itself on a strong track record of exemplary customer service. www.baydonhill.com

PR Contact

Mark Houlding

Rostrum Communications

mark@rostrumpr.com

+44 (0)7773 782 520

Buyers beware soaring Euro, warns Baydonhill

11/07/2008 00:00:00

Buyers beware soaring Euro, warns Baydonhill

Baydonhill PLC, the AIM-listed FX and overseas property specialists, today warns prospective holiday-home buyers of the sharp rise in prices due to the current strength of the euro. Compared with last year, on average house prices in France or Spain now cost an extra £26,000, a steep increase from £133,600 to £160,000.

Wayne Mitchell, CEO, Baydonhill said:

“Over the past year, the euro has strengthened dramatically and seems set to continue to rise. With the pound currently at an all-time low against the euro, the implications for those thinking of buying a house abroad on a tight budget are worrying.”

“However, there are several ways to ensure the lowest price possible. By using a foreign exchange specialist, you can fix your exchange rate so that the company buys you euros if they fall to a designated price. Exchange rates can also be fixed at the outset of buying a property to avoid suffering as a result of currency fluctuations.”

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Note: Photography available on request, please contact mark@rostrumpr.com

About Baydonhill

Baydonhill, formerly The 4Less Group, is the only full-service financial services provider to the overseas property industry listed on AIM. The company provides an integrated service to private clients, IFAs and corporates looking to purchase currency or overseas property. Group services include overseas mortgages, foreign exchange for lump sum and regular monthly payments and overseas buildings and contents insurance. www.baydonhil.com.

Contact

Mark Houlding

Rostrum Communications

mark@rostrumpr.com

+44 (0)7773 782 520

Attention wine buyers

07/05/2008 00:00:00

Baydonhill Plc, the AIM-listed FX and overseas property specialists, today warns wine dealers that the continuing strength of the Euro represents a very real threat to their margins and business models over the next 3-6 months.

The price of wine to the consumer could rise by a further 10 per cent this year after the strength of the euro has added as much as £1 to a standard bottle in recent weeks, as well as increased duty introduced in this year’s Budget, which added 14p to a bottle of wine.

Neil Harrowell, Senior Account Manager at Baydonhill Plc, warned:

“Exchange rate fluctuations are a constant problem for most importers because of the time scale between tasting, ordering, taking delivery and payment. And occasionally, because of cashflow constraints within small businesses, these payments can be delayed for a number of months, compounding the possibility of them being adversely affected by movements in exchange rates.

“By entering into a forward contract, a business can guarantee the exchange rate on a given currency for a given date, or range of dates, in the future with no upfront cost. Also, a forward contract creates certainty from uncertainty - enabling importers to accurately calculate their pricing.”

…ends…

Note: Photography available on request, please contact mark@rostrumpr.com

About Baydonhill

Contact

Mark Houlding

Rostrum Communications

mark@rostrumpr.com

+44 (0)7773 782 520