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MORTGAGES IN SPAIN
In conjunction with Mortgages Direct, Spains leading mortgage broker
HOLIDAY HOME AND INVESTMENT MORTGAGES
Holiday home mortgages are generally for non-resident property buyers who do not live in Spain. The maximum borrowing amount is up to 70% of the property purchase price (or valuation if lower).
Lenders offer fixed, variable and, in some cases, mixed rates. For variable rate mortgages, the rates are based on the annual Euribor reference rate with a percentage margin added to this, for example, annual Euribor + 3%.
Investment mortgages are for those property buyers planning to rent out their property after purchase, or where the buyer already has at least one existing mortgage in Spain. If the banks believe that the property will not be for sole use by the owner or that a commercial activity will be carried out there, they would normally treat it as an investment mortgage. Generally speaking, banks will only offer 50-60% of the property purchase price (or valuation if lower) for these types of mortgages.
PRIMARY RESIDENCE MORTGAGES
Primary residence mortgages are for those where the property in Spain will be their main residence and they already pay Spanish income tax, or in exceptional cases are about to start paying taxes there. For this type of mortgage, it is possible to secure mortgages up to 80% of the property purchase price.
CONSTRUCTION AND COMMERCIAL MORTGAGES
DEPOSIT FUNDING
We can help raise capital to use towards your deposit for your Spanish dream home using equity in your UK property, without requiring you to sell or redeem your existing mortgage.
For this type of mortgage, the best products are where the banks will offer a loan against the plot of land (up to 50% of the cost, or value of lower) and also for the construction works (up to 70% of the cost, or value of the project, if lower).
In all cases, applicants must own the plot of land outright before any bank will lend. It is possible to purchase the land and sign for the mortgage at the same time, but most clients buy the land first. With the best products, the banks will pay up to 50% of the cost of the plot (or value if lower) as the first instalment, but usually only once the works have started.
If you are buying a property that banks will class as a commercial premises (offices, shops, hotels, B&Bs etc), we can offer mortgages to suit your purposes. The mortgages available are generally 50-60% of the purchase price (or valuation if lower) and conditions differ from those for residential properties.