Financing a Property in Spain
There are a number of ways to finance your dream home in the sun – releasing equity in your UK home for example, or taking out a mortgage with a foreign bank. Whichever you decide upon, View Spanish Properties will be on hand throughout to help ensure the finance is in place as quickly and as easily as possible.
Releasing equity
If you have equity in your home here in the UK (by ‘equity’ we mean if your house is worth more than the mortgage you have on it) you could consider re-mortgaging as a means of releasing funds. It’s worth noting that with this method you may be increasing your overall debt – but on the plus side, the money you release will be going straight back into your property in the sun.
Arranging a mortgage
You can approach the many foreign High Street banks direct about a mortgage. Or, if you prefer, we can introduce you to an advisor or broker from one of our partners who will talk you through the need-to-know and the good-to-know of borrowing in your preferred country. In Spain for example, you can take out a mortgage of up to 60% of the valuation of the property (subject to status).
Currency Exchange
Transferring money abroad from the UK? Our partners, Global Currency Exchange Network, can save you both money and hassle. One of the UK’s leading foreign exchange companies with 20 years experience in the sector, they’ll secure you the best exchange rate and make sure that all payments are made on time.
We offer one to one viewing trips to Spain for £99 per person including flights, transportation, hotel and meals.
Purchasing a Property in Spain
It’s a proven fact that there is very little new property being built under £100,000 to replace the genuine bargain resale homes being snapped up in this most popular price range.
This means good quality property in prime locations is getting much harder to find and property prices will now slowly creep up, it’s simply called supply and demand.
There are some excellent new properties, bungalows and detached villas now being built in the £100,000-£200,000 price range and our group has full access and keys to the best ones all along the Southern Costa Blanca, Costa Calida and Costa Del Sol coastline.
Many people can pay cash and we recommend you use the excellent services of the specialist money transfer companies such as Global Currency exchange. They can normally improve in the region of 2 to 3% on the exchange rates from your high street bank or building society therefore saving you thousands of pounds on the actual purchase price of your home in Spain, just mention our name for preferential terms.
It may be sensible to go to your present mortgage lender, bank or reputable local financial adviser to see if you can raise all or at least 50% of the purchase money from the UK before you view, especially due to recent stronger sterling exchange rates, we also offer Spanish-based mortgages.
Spanish mortgages
In partnership with Fluent Finance Abroad we can help you get Spanish mortgage on all the properties we offer for sale. The bank of Spain advise that non-residents are allowed a maximum of 60% loan to value.
You have to be very wary of some higher rates being offered as normally the strict lending criteria and personal credit checks can be severe, plus the rates can be much higher than the 60% loan to value mortgages.
Please contact us at any time to discuss various finance options, we can advise you and set the wheels in motion before you go out to view.
We have direct contact with all the major Spanish banks and can assist you in arranging a suitable Spanish mortgage facility at sensible rates.
Normally clients request up to 50% of the property valuation, having the remaining amount available in other funds.
For private buyers the Spanish banks normally require the following to assist in getting the acceptance arranged quickly:
- Last P60
- last three payslips
- three months bank statements
- and normally and Experian personal check is also required
For those on pensions requiring a Spanish mortgage they will need proof of your monthly pension and usually do not offer finance facilities if you are over 74 years old.
For self-employed clients you will require:
- last two years annual accounts
- last two years tax calculations from the inland revenue
- six months bank statements
- a basic Experian personal credit check
Please contact us at any time for further information.
Obtaining Spanish mortgages can be much easier than you may think, and we can arrange all this on your behalf.
