A Lithuanian bank has teamed up with a Dublin broker to offer mortgages to Ireland-based natives of the Baltic country to buy property back home. SEB Vilniaus Bankas, which is a subsidiary of Sweden's SEB bank, has just launched the scheme in conjunction with Asset Finance and Mortgage. It is understood to be the first venture of its type in Ireland. Diarmuid McAuliffe, managing director of Asset Finance and Mortgage, said his company had approached SEB to initiate the service and spent most of this year finalising the details of the partnership. It enables Lithuanians to complete mortgage paperwork here, and receive approval without having to travel home. During the summer, SEB Vilniaus Bankas had a representative in Dublin to discuss property deals in Lithuania with immigrants. Mr McAuliffe said the test-run had indicated a sizeable level of interest amongst Lithuanian ex-pats in obtaining mortgages to buy at home. The 2006 census revealed that there are almost 25,000 Lithuanian nationals living in Ireland. "The typical apartment costs about €200,000 in Vilnius, but outside the capital property can be bought at competitive prices," added Mr McAuliffe. He said he expects the average mortgage to be raised by Lithuanian clients will be in the region of €100,000. Lithuania has experienced a boom in property prices in the past couple of years. According to international estate agents Frank Knight, the price of residential properties in Vilnius rose almost 22pc during the first quarter of 2007, compared to an 8pc rise in the same period in 2006.
Source: Irish Examiner
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