Property Alert - Spanish Mortgages

Spanish Mortgages

When buying property in Spain and would like to finance your new Spanish property we are able to offer you a tailor made mortgage. Below you will find a summary of details related to Spanish mortgages.

Service

The Spanish mortgage service is offered through our partner Baydonhill International Mortgages; an independent broker with a team of consultants on-hand to provide you with a consultative, personal approach when sourcing a mortgage solution best suited to your individual requirements.
Due to access to a variety of competitive and exclusive products reduced rates and margins are offered which are not available when approaching lenders directly.
We work with a panel of lenders in Spain that provide us with dedicated underwriters who deliver a fast track service.
Our bi-lingual consultants have an in-depth knowledge of their specialist areas and expertise to guide you through every step of the financing process, making it as dimple and stress-free as possible.

Our Products

We offer Sterling and Euro mortgages for the purchase of offplan, new or existing properties.
Financing can be arranged for acquisition, construction, re-mortgage and capital raising.
We can offer interest-only and repayment Spanish mortgages on a variable or fixed-rate basis or a combination of both.
Many of our products do not have any early redemption penalties.
A minimum of 6 weeks should be allowed from application to a lender to completion.

Eligibility & Criteria

Full status and self-cert Spanish mortgages are available.
Terms can be from 5 to 40 years.
Spanish lenders assess eligibility on the applicant’s capacity to repay the loan. Approximately one third of monthly income can be taken up with existing mortgage, loan repayments and the proposed Euro mortgage.
No potential income from the property in Spain can be taken into consideration.

Acquisition Mortgages

Max LTV is 80% of the valuation (up to a maximum of 120% of the purchase price).
Variable mortgages are fixed for an initial period and then recalculated using the EURIBOR (European Interbank Offered Rate) plus a margin.
Mortgage Products include:

Repayment:

Variable rates from 4.42%, with margins from 0.9%.
Fixed rates from 5%

Interest Only:

Variable rates from 4.42% with margins from 1.10% (available up to a maximum of 40 years).

Stage payments for off-plan property

This Spanish mortgage is available through lenders, who will take a charge on your property in the UK to fund the building of your off-plan property in Spain.
Provided you are a UK home-owner with sufficient equity you may borrow up to 70% (to include your existing mortgage)
of the value of your property. These funds can be released immediately or drawn down in tranches when payment is required.
The loan can be in Sterling or Euros and the interest rates can be based on the EURIBOR or LIBOR.
The loan will be on an interest only basis for a maximum of 2 years with repayments due quarterly.

Capital Raising / Re-Mortgage

This product allows Spanish property owners to raise funds on property that they have already purchased or to repay an existing lender and release further equity.
Max LTV is 75% of the bank’s valuation.
This scheme is available to both employed and self-employed clients, regardless of the purpose of the loan.
Products are available for clients wishing to change from a repayment to an interest only mortgage at competitive rates.