Spanish purchase mortgages
Market Leading Spanish mortgages currently available:-
Product 1
- 80% of purchase price (70% of valuation and Exclusive Product not available direct in Tenerife!)
- 5 years Interest only available
- Up to 40 year term
- Rates from 2.7%.
- Borrow 100,000€ for as little as 233€ per month
Product 2
- 75% of purchase price (60% of valuation)
- Up to 30 year term
- Interest only for up to 5 years
- Rates from 1.74%
- Borrow 100,000 € for only 145€ per month
Product 3
- 60% of purchase price (60% of valuation)
- Up to 25 year term
- High income multipliers
- Rates from 2.79%
- Borrow 100,000€ for only 229€ per month
How much will a mortgage will cost and what documents will you be asked for?
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Loan to Value
Standard loan to values are up to 70% for non-resident Spanish Mortgages. However the purchase price is also a factor and regardless of what you may be told elsewhere, you cannot borrow more than the purchase price as the Spanish mortgage lender will also stipulate for example “up to 80% of purchase price.”
If a property you wish to purchase is on sale for 200,000€ then you may be able to borrow up to 160,000€ (80% of purchase price) so long as it this is not more than 70% of the properties valuation. The property therefore must value at 227,000€ to fit the mortgage lenders criteria.
Interest rates in Spain
Most Spanish purchase mortgages are variable rate and are based on the EURIBOR where your interest rate varies yearly. Your interest rate for the first 12 months is determined by the Euribor when you purchase, plus a fixed amount determined by the bank , ranging from 0.2 to 2.7%.
So, if the Euribor is 4.5% when you purchase and the banks rate is “0.75% above Euribor” your rate for the first year will be 5.25%.
Maximum Term and age
Spanish mortgage terms range from 5 to 40 years. Most banks expect the mortgage to be paid off by the age of 70 or 80 years although some banks do offer no limit on age.
Interest only Spanish mortgages
Interest only is available on a wide range of products and ranges from 1 year interest-only up to full term of 40 years interest only. Unlike the UK, no repayment vehicle is required by the bank offering the mortgage.
If you would like to know more about any aspect of Spanish mortgages for your property purchase in Spain, Contact us now for further information
