Guide To Spanish Mortgages
Despite extensively reported difficulties Spanish Mortgage, lenders are still lending and property prices are currently very realistic in Spain with most sellers now willing to negotiate with buyers particularly those with their finances already arranged.
We provide a free advice and approval in principle service so before you go house hunting you will know what your maximum budget is, what cash deposits you will require and how much the entire process will cost with no nasty surprises at a later date.
We will advise you on how to find out if a property in Spain has an existing loan you can take over and explain the benefits and drawbacks of doing this to you.
Being fully prepared will enable you to negotiate hard with sellers in the knowledge you are in a strong position to buy and have the ability to move quickly without putting at risk your deposit monies. Contact us today for your no obligation quote.
You don't need to shop around contact us today and with a quick conversation we can save you time and money by telling you immediately what you can borrow and how much it will cost.
Spanish Purchase Mortgages product overview
Spanish mortgages are available for non residents up to 70% of valuation
Most banks now link to a percentage of purchase or valuation whichever is the lower but it is still possible in some circumstances on a case-by-case basis to achieve up to 100% of purchase price as long as client can prove they had the funds to buy and are taking advantage of a high valuation rather than required this level to purchase
The majority of banks in Spain have dropped loan to values for non-resident buyers to 60% so for widest choice of lender and product 40% cash deposits plus costs will be required.
Spanish mortgages are normally variable trackers. Most lenders link to the 12 month Euribor plus a margin above. Your overall rate or TAE is determined by the Euribor being used within the month you complete. The Euribor rates for completions and reviews are published by the 5th of each month by The Bank of Spain
If you are linked to the 12-month Euribor it is most likely your rate will only be reviewed once a year. This provides stability of payments for a full 12 months and protects against short-term rate increases. In a decreasing interest market, however you will have to wait for your next review to feel the benefit of any drop in rates
For clients who prefer to be linked to shorter term rate reviews a few banks use the 6 month, 3 month and 1 month Euribor
Limited access to interest only is available to take payment pressure off early years. Fixed rates may also be available.
Abbey National UK owned by Santander offer a Spanish mortgage from their telephone mortgage centre for up to 80% of valuation for UK home-owning residents. Clients can only apply direct further information is available at Abbey Spanish Mortgages
To find out what product what might suit you
contact us now for a free quote.
Equity release and re-mortgaging
Both equity release in Spain and a re- mortgage of your existing Spanish mortgage are possible and can provide you with benefits. For further information on what can be achieved see our pages
To find the most suitable re-mortgage product for you
contact us now
Download our free Spanish remortgage information sheet (pdf) here
Risk Criteria's
All mortgages in Spain are full status at present. This means full paperwork will be required by the bank to assess loan applications. Most banks work on debt to income ratios and asses you against incomes seen on latest tax documents. All banks will want to check your liabilities from normal country of residency and will then check total debt payments including new loan do not exceed their specified percentage of your after tax incomes. Each bank may assess you differently we have each banks criteria at our fingertips and can quickly guide you to most suitable lender based on your personal circumstances. For your free consultation contact us now.
For a realistic view on what you could borrow, mortgage costs and what rate you could anticipate
contact us Today
For more general budget information please use our free mortgage calculator or Spanish mortgage illustrator to get an idea of how much the repayments would be.
Contact Us
There's no need to shop around! Contact us via this website to ask us a question or to arrange an appointment to discuss your options.
Testimonials
I know that this was an especially difficult case. But you came through for us, in what has been very worrying times for us all with the recent credit crunch.
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Spanish Mortgage Info
Want to buy in Spain, but not a resident? Find out about our Spanish mortgage products.
Be prepared... the Spanish purchase and finance process is more complex than in the UK.
Spanish mortgage FAQ
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