Spanish Mortgage

Spanish Mortgage

When you have found your ideal Spanish property for sale, then the next thing to think about is finance. If you are not buying the property with 100% of your own funds, then you will need to think about mortgages. As you are buying a property in Spain, then a natural step for many people would be to finance the purchase in Spain.

Our main advice would be to speak with somebody who is qualified to give mortgage advice. In this respect the Spanish mortgage market is much less regulated than in the UK, so please beware of “mortgage brokers” in Spain who not necessarily be qualified to give you mortgage advice. One way to counter this would be to call into Spanish banks that have English speaking staff, so that you can get quotes directly, or to find properly qualified mortgage brokers to advise you.

Due to the difficulties in the property market in the last few years, banks have generally become much more reticent to lend a high percentage loan-to-value mortgage than before. Although there maybe some cases in which a bank may give you a high percentage loan-to-value mortgage, it is increasingly common for them to not give a mortgage of more than 70% of the property value. Furthermore, many banks will require the purchaser to have the funds to cover purchase costs as well.

Nevertheless, if you are looking to borrow a high percentage of the properties asking price, there are some options available through property development companies. As many developers have a large amount of unsold properties on their books, which already have mortgages in place, when they drop their asking prices, it brings the sales price more in line with the mortgage that is available on the property. For examples of such properties, please click the link below.

Distressed Properties for Sale in Spain