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If you need to raise finance to buy your property and don't wish to borrow against your UK home, then a Spanish mortgage
is an option. However in the current climate it can be hard to convince banks to lend unless you have a rock solid credit history and proof of earnings.
Generally speaking Spanish banks will lend up to 60% to non-residents. It can be possible to borrow more but this is becoming rare. Repayment periods vary, for some 15 years
is the maximum, but increasingly so, 20 and 25 year terms are available.
Interest rates are set at a percentage above the Eurobor (like our base rate), but bear in mind your new mortgage will be in Euros. How much
it costs you in pounds will fluctuate with the exchange rate. Also budget for the cost of sending money to your Spanish
bank account. This can be expensive and is often overlooked.
Remember that as well as finding up to 30% for your deposit, you will also need the funds to cover VAT, legal costs etc. It is sometimes possible to use the mortgage to meet these expenses but only if the bank valuation of the property is greater than the asking price. Construction Loans are available should you wish to build a house, but normally you are required to purchase the plot of land first. Banks will not usually finance a property constructed on a rustic plot.
If you require any help in finding and setting up a mortgage we will be happy to assist. We can also advise on currency exchange services. |
