Cape Verde - Mortgage Types Available

Apply for a Cape Verde mortgage now.

Assetz Finance offers its Cape Verde Mortgage Service to all clients purchasing through the specialist Cape Verde property agent Assetz Cape Verde, or via any other Estate Agent or Developer.

It can be time consuming looking for mortgage products offered on overseas properties and in fact with Cape Verde, as it is a very new market, it would be pointless as no lenders will be offering their mortgage deals directly to the UK general public but only through experienced international mortgage brokers. And what’s more, all brokers offering mortgages in Cape Verde will have exactly the same alternatives available as the number of lenders offering mortgages to non residents is so very limited.

Not all websites are up to date with the most comprehensive information on what is available as there are constantly new developments in the finance due to the newness of the market. We hope that the below information will give you an idea of what is available and we endeavor to keep our website up to date with all the newest deals however we do advise that you call us directly on 0845 400 8000 to discuss exactly what is available on any current day.

CURRENCY

The mortgages offered by Cape Verde lenders are in Euros.

RATES

The rate will be variable as no fixed rates are currently available. Variable rate mortgages in Cape Verde work very much like tracker mortgages in the UK.

For the term of the mortgage the interest rate will be based on a fixed margin above the Euribor¹ index. This fixed margin is typically between 3 and 4.5% depending on your circumstances and level of income.

This currently gives a variable rate of between approximately 7 and 8.5%.

¹ EURIBOR stands for the Euro Inter Bank Offered Rate. This is the rate at which European banks can borrow from each other for a set time period, 3, 6 or 12 months. Most Cape Verde lenders chose to use the Euribor 6 month index as their base rate.

The advantage of having a variable rate linked to the EURIBOR is that your bank cannot keep your payments high if general money markets fall in Europe - the bank can only charge their set margin above the current level of the EURIBOR. To check the latest EURIBOR rates, use the link: http://www.finfacts.com/Private/dbn/dbn.htm.

LOAN TO VALUE (LTV)

Most banks are happy to offer a maximum loan of 75% of the purchase price or valuation price (whichever is lower) to non residents. However, this may be slightly higher for some borrowers depending on their income and situation.

The mortgage will not include the purchase/legal costs.

Most banks will not guarantee the LTV that will be offered until the borrower submits a full mortgage application - decisions in principle are very rare.

INTEREST ONLY MORTGAGES

As yet there are no interest only mortgages available in Cape Verde. We will keep you posted as this develops.

RE-MORTGAGES

For investors who want to get onto the Cape Verde property ladder early whilst there are still plenty of excellent deals but who are unhappy with the limited mortgage options available we can offer a re-mortgage service in the future. In this way investors can buy properties in Cape Verde using the lending available at the moment (secured on the Cape Verde property or by re-mortgaging/taking a loan in the UK) and in a few years time when the mortgage market has developed further can return to Assetz Finance in order to secure a re-mortgage in Cape Verde either on the unencumbered property (if you purchased using UK finance) or to re-mortgage onto a better deal offered by the lender at that point or by another lender if they are offering a better deal at the time.

COSTS INVOLVED

In Cape Verde the conveyancing costs for the purchase of an off plan property including all taxes and charges and the registration of the mortgage come to approximately 8%.

In addition to these compulsory costs, you will need to think about appointing your own legal representative, a specialist, bilingual Cape Verde property solicitor based either in the UK or in Cape Verde (we can recommend and put you in touch with one of our panel of solicitors if you wish). This solicitor will be able to offer you advice on inheritance and tax that you will not receive within the 8% conveyancing costs. This legal advice will of course come at an extra cost.

Cape Verde lenders do not charge valuation costs so there is nothing to be paid up front to the lender. They do however always charge a 1% (of the mortgage amount) arrangement fee.

In addition to this mortgage cost all borrowers must take life insurance to cover the Cape Verde loan. The life insurance premiums will depend on the lender however these are not significant costs. You will also need to set up buildings and contents insurance. Assetz Finance can assist you with all of your insurance needs.

Assetz Finance does charge a small administrative fee in order to help us cover all of our time, administration and courier costs. This is a one-off fee of £150.

To our knowledge, there is no other company in the market offering as comprehensive a service as Assetz Finance without charging a fee of some type. This is because the commissions received by brokers from Cape Verde lenders are very minimal and cannot cover all the time and resources required in order to be able to offer the type of high level, impartial advisory service that we do. Our non-charging competitors are subsequently unable to offer the amount of time and assistance that our services involve and that UK purchasers of overseas property require. In comparison to other overseas mortgage brokers that charge a fee, we have found that Assetz Finance consistently charges less and we have received continual praise on the value for money we provide to our clients.

Please be aware that this site was last updated on 4 June 2007. We endeavor to keep this information as up to date as possible as we are aware that websites that are not up to date are very misleading.

One last thing to bear in mind...

Please think carefully before securing any debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or other loan secured on it.

When securing a debt against your foreign property please remember that:

1. your foreign property may be repossessed if you do not keep up repayments on any mortgage or loan secured on it.
2. changes in the exchange rate may increase the sterling equivalent of your debt if taken in another currency.

For all mortgages and loans, irrespective of their location, please be sure that you can afford the repayments before entering into any credit agreement.

The figures and information quoted on this site are believed to be correct at the time of issue and are subject to change without notice. Any quotation supplied is NOT an offer of a mortgage.

In accordance with the Data Protection Act 1998 all personal data handled by Assetz Finance will be processed fairly, lawfully and in the best interests of our client. The information and personal details provided may be disclosed to companies who have an agreed partnership with Assetz Finance and who will be able to offer you financial and property services that you require. These companies may be located in your country of purchase or the UK.

Please be aware that it is a criminal offence to give misleading or incorrect information in connection with a loan application. Specific actions may be taken to prevent fraud.

To speak with a member of the Assetz Finance team please call 0845 400 8000.

Calls to this number are charged at local rather than national rate so that if you are not based around Manchester you will not pay more. Calls will be charged at normal international rates if you are calling from abroad.