In the last few days we have seen how the world is preparing for the new economic crisis. Since the European Central Bank announced a rise in interest rates from 0.5% to 1.25%, many banks have increased their interest rates on the mortgages they offer.
However, despite the indications of the European market, states outside the European Union are also immersed in the same problem, taking solutions on their own as third states.
Thus, in the case of the United Kingdom, in order to combat the inflation of the British pound, the economic policies adopted by the government of Liz Truss have caused many banks to withdraw their low-interest mortgage offers in order to curb demand, the aim of which is to lower inflation.
Truss’s tax cuts are driving the pound to dollar parity, with the currency sinking and UK debt rising.
With the reality being that it is difficult to obtain mortgage credit, and, if obtained, at a much higher interest rate than in a previous scenario…
What solution is there for the British?
Certainly, this economic crisis does not affect all states in the same way, which means that mortgage variability may continue to exist in other states. Moreover, we must add the economic capacity of the citizens of each state: a British citizen is not affected as much as a Spanish citizen by the measures of the European Central Bank and even less by Spanish inflation.
Therefore, the best remedy for those who want a property is to take out a mortgage in the Balearic Islands.
Why get a mortgage in the Balearic Islands?
Because there is no cut in the mortgage offer in Spain and the maximum variation of the mortgage interest rate is at 3%.
Furthermore, as determined in the post about the profitability of real estate investment in Mallorca, a mortgage in the Balearic Islands is very attractive for the British citizen: he will obtain it with security and also with an interest rate totally affordable for his pocket, acquiring, in addition, a highly profitable product, which year after year increases its value (even in years of pandemic).
In conclusion, from Bufete Frau we recommend the arrangement of mortgages in the Balearic Islands: it is an economically viable, comfortable, safe product that ensures a high profitability, added to the quality of life offered by the Islands.
As experts in the field, do not hesitate to contact us in order to help you make the smartest investment today.