Spanish Mortgage | Mortgage in Spain
Many financial institutions and European banks will lend for mortgages on Spanish property, so it is advisable to look around beforehand if you need a mortgage in Spain. Security of the loan can be obtained from your property in the UK, or on your property in Spain. If you do need a mortgage, and decide to take one out in Spain, there will be a 1% fee of the value of your Spanish mortgage for registering the mortgage with the Spanish authorities. Your lender will probably charge a valuation fee together with a fee of around 1% of the mortgage value to cover their costs in arranging the loan. Getting a mortgage in the UK reduces the costs involved in setting up the mortgage, but the interest rate would be higher.
Using a mortgage broker in Spain >>
If you get a Spanish mortgage which will be paid from your income in the UK, you may be exposed to exchange rate fluctuations, which could work for, or against you. You may well wish to engage the services of a foreign exchange specialist who will be able to ‘buy’ Euros at a fixed rate. The disadvantage of a Spanish mortgage is the high set up charges and the taxes payable to the Spanish authorities. The advantage was always the low interest rates, but due to lowering rates in Britain, there is not much in it at this time. Normally, a Spanish bank will lend up to 70% to non-residents, but an 80% Spanish mortgage can now be obtained in some cases.
We are able to offer an excellent mortgage service by using various banks to get you the best offer. Clients are not required to buy through Citrus Iberia, we will act totally independently whoever the selling agent is. Should clients receive a mortgage offer from one bank, we can use it to ‘barter’ with other banks as often, another bank will improve on your original offer.>>
Before entering into a property purchase, or applying for a Spanish mortgage, you should always consult a tax advisor, and a lawyer. (See Taxes on Spanish property >>)
Spanish Mortgages for new villas
We also supply new villas from 61,000 Euros! Mortgages can be arranged for up to 75% of the combined cost of plot and villa. Contact us for more info.
