Spanish Mortgage Rates
Spanish Mortgage Rates are based on your income, your residency status, the valuation of the property and the purpose of your purchase. The most common funding offered to non residents is 80% of the Spanish property purchase price or valuation. This rate is the same throughout the Spanish mainland, the Balearic and Canary Islands of Spain.
Sourcing Spanish Mortgages
Although some banks only deal with Spanish residents, a number of banks offer mortgage to residents as well as non-residents through different mortgage interest rates and Loan To Valuation (LTV) of the property in Spain. Depending on the circumstances, the APR can be as low as 3% to an incredible 17% in some rare cases.
Proof of Income usually proves to be hurdle for applicants who are paid their salary in cash or those businessmen who have had their accounts taken care of by accountants to limit their tax liability. In such cases, it can be difficult to prove repayment ability to the banks. This is one of the most common problems faced by our customers and our advice on Spanish mortgage usually proves invaluable to our customers.
There are a number of lenders who advise their customers against renting out their new Spanish property, thereby depriving them of the additional income needed to pay their Spanish mortgage interest rates. We arrange all types of buy-to-let Spanish properties for temporary or permanent Spanish investments up to 80% of the property value for residents as well as non-residents of Spain.
All Spanish banks charge an administration fee for set the mortgage, which can be anywhere between £300 to as much as 2% of the purchase price of the property in Spain.
A number of people are attracted by the low introductory fees as well as special first year rates; however, mostly people find themselves paying approximately 3.5% over the Spanish Bank Rate every year. This is another reason that people must be very careful when choosing a Spanish estate agent who will secure the best deal for its customers rather than tying up with a bank for a profitable deal for themselves.
Spanish Mortgage Criteria
Banks differ their loan criteria for different types of property purchases in Spain.
One of them is the case of a straightforward residential property purchase where the banks will make an offer, which is great but the problem that arrises is that they only offer 50% of the actual Spanish property purchase price. This often proves to be problematic for mortgage buyers in Spain as the difference between the actual purchase price and the declared purchase price is often huge. We have dealt with a number of similar problems and leverage our experience and contacts in the Spanish mortgage market to offer fabulous flexible arrangements to overcome such problems.