Spanish purchase mortgages
Market Leading products currently available:
-
- Product 1
- 80% of valuation up to 100% of purchase price
- Interest only available
- Rates from Euribor plus 1%
.
- Product 2
- 80% of valuation up to 90% of purchase price
- Interest only for up to 3 years
- Rates from Euribor plus 0.85%
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 80% for non-resident Spanish Mortgages and are based on the property valuation in Spain, not the purchase price.
If a property you wish to purchase is valued at 200,000 Euros, then you may be able to borrow up to 160,000 Euros as a mortgage (80% of valuation).
If in this case, the property was also for sale at 160,000 Euros then you are able to take a mortgage for 100% of the purchase price and need only pay the costs of the purchase (approximately 11%).
So, the maximum mortgage available in Spain is 100% but this is limited to only a few lenders.
Interest rate
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%.
Term
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
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
