Mortgage in Egypt

[Peter Mitry]

How many actual mortgages have you arranged through Egyptian banks for British clients? What LTV can you offer, over how many years and at what interest rate? If you can deliver a sound product you will get a lot of business; if not you will become one of the many companies who are trying to force the issue with Egyptian banks with little hope of success in the short term.

 

[Roger]

How many actual mortgages have you arranged through Egyptian banks for British clients? What LTV can you offer, over how many years and at what interest rate? If you can deliver a sound product you will get a lot of business; if not you will become one of the many companies who are trying to force the issue with Egyptian banks with little hope of success in the short term.

Hi Peter,

The details are in post #74.

Still can't compete with lending here (Ireland) and I believe the UK either, but I suppose if you can't re-mortgage or borrow at home it will offer an alternative (if it comes to fruition).

 

[realestatemart]

Hi everyone,

At long last we have been able to secure a genuine financial connection in the UK, for mortgages secured on properties built in Egypt.

The Terms:

The Loan to value is 60%

with terms between 7, 10 & 15 years.

Rate is 7.75%

Turnaround time should ideally be between 6 to 8 weeks, and we do have a solicitor for power of attorney should you need him.

With mortgage finance available now, we should start to see even better returns on investment property here on the Red Sea coast.

mmm I don't hink this is valid yet with Egyptian banks

 

[Access Worldwide Property]

How many actual mortgages have you arranged through Egyptian banks for British clients? What LTV can you offer, over how many years and at what interest rate? If you can deliver a sound product you will get a lot of business; if not you will become one of the many companies who are trying to force the issue with Egyptian banks with little hope of success in the short term.

Hi Peter,

We have literally just started to deal with this company, so cannot give you a case history. However, we are putting several through at the moment and will keep you all posted.

Like many of you, we have dealt with companies over the past year who promise the earth, but fail to deliver. We have checked this company out as best as we can, and they appear to be legit, even advertising on the TV (according to their website and agent bumph!)

Watch this space!

Have a good weekend

Alan

 

[Jeremy Sturgess]

Hi Peter,

We have literally just started to deal with this company, so cannot give you a case history. However, we are putting several through at the moment and will keep you all posted.

Like many of you, we have dealt with companies over the past year who promise the earth, but fail to deliver. We have checked this company out as best as we can, and they appear to be legit, even advertising on the TV (according to their website and agent bumph!)

Watch this space!

Have a good weekend

Alan

I think people are right to be sceptical at this stage. I hope these brokers are not asking for any fees upfront from prospective customers. If so it would be safer to assume it was not legit (particularly if they advertise on TV!)

 

[Peter Mitry]

I agree with you Jeremy; I have seen it all before. I will be at the front of the queue introducing my clients once the first deal is completed at a sensible interest rate. Until then we will advise our clients that there are no mortgages.

 

[Jeremy Sturgess]

I agree with you Jeremy; I have seen it all before. I will be at the front of the queue introducing my clients once the first deal is completed at a sensible interest rate. Until then we will advise our clients that there are no mortgages.

A good mortgage offer really helps in developing markets. Bulgaria and Cape Verde seem to have got their act together so why not Egypt. I am working v hard to get a sensible financing package together for our scheme in Gouna, Ancient Sands Golf Resort. I can get 10 year funding from Tamweel (not the Dubai Tamweel but Orascoms mortgage financing subsiduary) but only in Egytian pounds at v high rates and upto 65% LTV for foreigners and only on completed properties at registration which for most buyers is a long way off- ie no good for most people !- What I'm working on is to try to provide several providers to offer off plan purchasers funding in euro sterling dollars etc at sensible rates and over a longer term (15-20 years) and to cover payments needed during the construction period. I think it will come this year but probably only up to 65% LTV but things move mighty slow here as its all so new to them.

Jeremy

 

[wemyss1960]

link states TAMWEEL may open for business in July.

I would assume they will only work with very well established developers.

regards

Stuart

 

[queenie40something]

Hi Stuart - I have had to delete your link as it was directed to a post made in another forum.

I have found the article via Reuters Investing | Africa - Reuters.com

 

[wemyss1960]

MORTGAGE ALERT (genuine as it gets)

Basically if the land is owned (with title) by an individual or a development company then there should be no problem getting a mortgage

Maximum 60% loan to value

Capital and interest repayment basis in Egyptian Pounds

Rate unknown as yet (NOT GOING TO GUESS)

Maximum Term of 15 years

Loan must be repaid by age 65


Mortgages are definately not available in Sahl Hasheesh yet as land title is with the Egyptian Tourist Authority and cannot be transferred till the whole development is complete.



This is all the info I have till next week

Enjoy your weekend!

 

[NoMoreHotels]

Are these mortgages available on off plan properties or only on completion?

There is a lot of mis-information on this forum about the current mortgage situation. Some are basing their opinions on what they have read on other websites or heard rumours from over keen agents/developers.

Amlak is actually a broker for HSBC.

Tamweel has a licence to provide mortgages but currently has no product in place for the foreign market.

We have actively been sourcing a mortgage facility for our development Lotus Breeze. As we have had dealings with HSBC before and have built up good working relationships, we had a meeting set up in HSBC HQ in Canary Wharf with a senior member of HSBC Egypt to establish a mortgage facility.

Summary

Mortgages are available for foreign owners.
Max LTV at present 60%.
Mortgages currently must be in Egyptian pounds

The property has to be
· Completed
· Registered
· Have all utilities connected

At moment not available for offplan but Agreement in Principle (AIP) can be secured at off plan stage.

We asked for example of repayment and cost of purchasing for a one bedroom apartment at 300,000 EGP
(£30000 GBP approx )

Based on the information, we might finance a maximum of EGP 180,000.

The monthly payments would be approximately EGP 2,580.
Administration fees = 1.5% of the loan value.
Appraisal fees = EGP 1000+
Guarantee and Subsidy funs fees = 0.5% of the monthly instalment to be paid monthly.
Stamp duty = 0.25% of the outstanding loan value to be deducted quarterly.
Registration fees = depending on the property.

Please note that your customer must maintain a valid residency permit in Egypt valid for at least 1 year.

This illustration was based on a interest rate of 13.5%.

If you need information please ask and I will try to source the fact not the hype.

Adam Caan

 

[grays4u]

At those rates and charges looks like the mortgage market is yet if ever to take off.i would have thought no one could make a rental property pay at those rates if its not giong to hard anough anyway .this situation is only holding the market back and could realy slow down the market in the current world climate.as prices are staring to rise it will be interesting to see if investors start to look elsewhere

 

[Emu49]

Hi Peter,

We have literally just started to deal with this company, so cannot give you a case history. However, we are putting several through at the moment and will keep you all posted.

Like many of you, we have dealt with companies over the past year who promise the earth, but fail to deliver. We have checked this company out as best as we can, and they appear to be legit, even advertising on the TV (according to their website and agent bumph!)

Watch this space!

Have a good weekend

Alan

Have you got any news on the mortgages that you tried? Can you tell us if any of your customers managed to get a mortgage for an off plan project in Egypt?

 

[Sanchez]

I am very surprised that HSBC Egypt are offering mortgages.
I had a meeting with my personal banker only 3 weeks ago and he said they were not presently being offered to non egyptians.
They did offer me a 360 000 EGP personal loan, at about 14% pa.

Dave

 

[Peter Mitry]

Mortgages In Egypt

I am very surprised that HSBC Egypt are offering mortgages.
I had a meeting with my personal banker only 3 weeks ago and he said they were not presently being offered to non egyptians.
They did offer me a 360 000 EGP personal loan, at about 14% pa.

Dave

Our company has sold 5 million GBP in Egypt property in the past five months and we bank with HSBC. I think we would be the first to know if HSBC were offering mortgages to non residents and to the best of my knowledge they are not. Buyers beware! If you are promised a mortgage on completion make sure that you get a personal offer from the bank with the full terms and conditions before you proceed. Don't forget if you accept a promise from a Developer or Promoter it will be YOU searching for the funds on completion, not them. If a Developer is offering a personal finance scheme this is different; just make sure it is built in to your contract and have your lawyer check the terms and conditions.

 

[Emu49]

Our company has sold 5 million GBP in Egypt property in the past five months and we bank with HSBC. I think we would be the first to know if HSBC were offering mortgages to non residents and to the best of my knowledge they are not. Buyers beware! If you are promised a mortgage on completion make sure that you get a personal offer from the bank with the full terms and conditions before you proceed. Don't forget if you accept a promise from a Developer or Promoter it will be YOU searching for the funds on completion, not them. If a Developer is offering a personal finance scheme this is different; just make sure it is built in to your contract and have your lawyer check the terms and conditions.

So what happened to the mortgages being offer by WWD for DP1 & 2? Has any been processed? Surely no company can afford to lose 60% of the purchase price. What happens if the mortgage doesn't exist?

 

[lizzy2u]

if you do not have it written in your contract then you have to usume it was marketing talk from wwd who where hoping mortages would be in place on completion to date they are not .hence are you resposible for the 60% not wwd.so its all down to what is in your contracts.What are wwd saying is there any presure to complete are they giving time for you to raise funds.Just another of the many problems wwd have at this time they are trying to resolve time will tell

 

[Peter Mitry]

WWD Mortgages

So what happened to the mortgages being offer by WWD for DP1 & 2? Has any been processed? Surely no company can afford to lose 60% of the purchase price. What happens if the mortgage doesn't exist?

Good Question EMU; these mortgages were being offered by Egyptian Mortgage Alliance from Puerto Banus. I know that Jeff Scott is no longer with the company. Does anyone out there know of a mortgage which has been arranged through this company that has actually paid out, secured on the Egyptian property?

 

[wemyss1960]

UK Financing

if you do not have it written in your contract then you have to usume it was marketing talk from wwd who where hoping mortages would be in place on completion to date they are not .hence are you resposible for the 60% not wwd.so its all down to what is in your contracts.What are wwd saying is there any presure to complete are they giving time for you to raise funds.Just another of the many problems wwd have at this time they are trying to resolve time will tell

Free advice with no broker fees available to all forum members wishing to raise funds in the UK

 

[Peter Mitry]

Mortgages in Egypt

There is a lot of mis-information on this forum about the current mortgage situation. Some are basing their opinions on what they have read on other websites or heard rumours from over keen agents/developers.

Amlak is actually a broker for HSBC.

Tamweel has a licence to provide mortgages but currently has no product in place for the foreign market.

We have actively been sourcing a mortgage facility for our development Lotus Breeze. As we have had dealings with HSBC before and have built up good working relationships, we had a meeting set up in HSBC HQ in Canary Wharf with a senior member of HSBC Egypt to establish a mortgage facility.

Summary

Mortgages are available for foreign owners.
Max LTV at present 60%.
Mortgages currently must be in Egyptian pounds

The property has to be
· Completed
· Registered
· Have all utilities connected

At moment not available for offplan but Agreement in Principle (AIP) can be secured at off plan stage.

We asked for example of repayment and cost of purchasing for a one bedroom apartment at 300,000 EGP
(£30000 GBP approx )

Based on the information, we might finance a maximum of EGP 180,000.

The monthly payments would be approximately EGP 2,580.
Administration fees = 1.5% of the loan value.
Appraisal fees = EGP 1000+
Guarantee and Subsidy funs fees = 0.5% of the monthly instalment to be paid monthly.
Stamp duty = 0.25% of the outstanding loan value to be deducted quarterly.
Registration fees = depending on the property.

Please note that your customer must maintain a valid residency permit in Egypt valid for at least 1 year.

This illustration was based on a interest rate of 13.5%.

If you need information please ask and I will try to source the fact not the hype.

Adam Caan

Adam this is good factual information and is in line with our own research. However, it is a long way from the wild claims originally made by WWD which seems to be what the thread was about.