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Jet-to-let scheme takes off

Oceanico has joined forced with Barclays bank to offer a tailored mortgage on its developments in Lagos, Portugal. The deal offers a two-year interest rate free period combined with a two-year capital repayment holiday, dependent on a 30% deposit.

Oceanico says that with a strong lettings market, buyers also stand to make enough for the first two years of their purchase to cover costs for the third year when the mortgage repayments begin.

Simon Burgess, Oceanico Developments director, says: “This arrangement represents a unique opportunity for investors.”

The last phase of the four-star properties went on sale last week at two Oceanico resorts, Estrela da Luz and Vila Baía in Praia da Luz with prices ranging from e155,000 for a studio apartment to e585,000 for a three- bedroom deluxe apartment.

Oceanico says the popularity of buying property abroad continues apace with more than 112,000 Britons doing so in the past 12 months. More than 10,000 have bought in Portugal and reaped the rewards of capital appreciation rates in excess of 10% over the past three years.

Research from the Association of Hotels and Tourist Developments in the Algarve reveals that four and five star resorts achieve the highest occupancy rates for rental in Portugal at 67%. Based on this finding, a four or five star apartment rented out for that time would translate into 35 weeks&#39 rent per year for buyers.

Burgess adds: “We are catering for a new breed of investors who are turning to foreign shores to make their pounds go further.”


The Mortgage Mole

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Vesta secures full FSA permission

The grant of permission under part IV of the Financial Services and Markets Act 2000 means that Vesta will be an authorised organisation from Mortgage Day, October 31. The notification follows Vesta&#39s minded to approve letter which it received early last month. Mark Leaper, managing director of Vesta Money, says: “All our hard work on compliance […]

MPs told of KFI concerns

At a discussion at the House of Commons last week sponsored by GMAC-RFC and chaired by Labour MP John McFall, the lender&#39s chairman, Stephen Knight, raised the issue and called for action. Knight says: “I think the FSA has done a fabulous job and agree with about 90% of what it has done but KFIs […]

Torys propose Stamp Duty cuts as environmental incentive

In a speech on the environment, Tory leader Michael Howard explained that he saw adjustments to Stamp Duty as “a powerful incentive to increase home energy efficiency”, working in the same way that energy efficient cars benefit from reduced road tax. Howard says that Britain must face up to its ageing, inefficient housing stock, at […]


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