Obtaining a Spanish Mortgage need not be a stressful experience, although in many instances it can be - without the correct advice. At www.MortgageShop.com we deal with all Spanish banks, all of them with different rates and criteria. Loan-to-value percentages, range from 50% to 100% dependent on the bank and whether you are a resident or non resident. The most common funding we offer for non residents is 80% of the property purchase price or valuation, and we are happy to confirm that you don't have to be Prince Charles to qualify for this which we find is rare in Spain.
Some banks we find will only deal with residents of Spain, some with only non-residents and some offer the mortgage to both groups through a different percent LTV (loan to value) and interest rate. The APR can start as low as 3.00% rising to a staggering 17% in some extreme cases. Proof of income is often a stumbling block for mortgagees. This is due to the fact that if in the case of you being paid in cash or if your accountant has worked wonders to mitigate your tax liability, how can you prove to a bank that you can afford the repayments? This is just one common area where our advice proves invaluable.
At www.MortgageShop.com we also offer a form of no limited proof of income mortgages, where reams of documents are not required. We also pride ourselves in offering rare to find adverse mortgages in Spain where UK debts and poor credit ratings are not taken into account. These types of mortgage are not offered by the banks to High St customers.
/ Administration fees
All of the Spanish banks charge this fee, which is basically a fee for the bank arranging the mortgage. This can vary from £250 to as much as 2% of the purchase price or valuation of the property. There is also, in many cases, an early repayment charge, known in the UK as a redemption penalty, which can be as much as 2% of the amount repaid for early cessation of the mortgage. Many people are enticed by low introductory fees, and a special first year rate; they can however find that they are paying 3.5% over the average every year. Be careful, we know the estate agent has a contact that is absolutely fantastic but why don't you let an Independent company source the best deal for your circumstances rather than let a property company tie up a deal for the benefit of themselves and the bank!.
This is another area where the banks differ widely in their criteria. If it is a straight forward residential property purchase then most banks will make an offer, this is however often only 50% of the actual declared purchase price. Mortgages can be found for all of the following (although no one lender will offer them all).
Buy to let
Multiple property purchase
Loan to build
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