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PROPERTY FINANCE

MORTGAGE TYPES
Spanish Mortgage Types

In Spain, as with any other developed mortgage market there are big differences in the costs and terms of the mortgages available. Not only do mortgage terms vary in their attractiveness from bank to bank, they can also vary considerably within the same bank, and even from branch to branch. So where do you start your search for the ideal home loan? The good news is that our partner IMS constantly monitor the mortgages available in Spain to ensure that their recommendation to you is up to the minute, accurate and tailor made to suit your requirements.

Repayment & Interest only mortgages

Mortgages are usually linked to a variable rate and on a repayment basis however we are seeing more Interest only, coming to the marketplace. Repayment mortgages are a combination of interest and capital being repaid monthly to the lender. This way you will see a gradual reduction in the outstanding loan on your property and a creation of equity within it. It is guaranteed to repay your loan if you maintain the repayments.

nterest only loans, as implied, only repay interest on the loan. At the end of the term the amount you borrowed initially is repayable as a lump sum. This type of loan is ideal for those who wish to have a lower monthly repayment and are often used by investors as it means that more can be borrowed or multiple properties purchased as your buying power is greatly increased. Remember though that at the end of the term you will still owe the amount you borrowed.Standard loan to values are up to 80% for non-resident mortgages in Spain and are always linked to the valuation of the property in Spain, not the purchase price.

Equity release and self certification

These long awaited mortgages are now available in Spain through us and are a great way of releasing the embedded equity in your property for further investment, debt consolidation or any other purpose you can think of. Having the ability to self certify your income removes the onerous requirements of producing reams of paperwork and is ideal for those with more complicated circumstances. The amount you can borrow via these types of loans is smaller than by conventional means but we are experiencing rapid growth in advice in these areas. Currently you can release up to 75% of your property value from Euribor + 0.75%

Low interest rates and protection of your UK assets can be some of the key benefits of borrowing in Spain. All alternatives should however be understood and considered before making a final decision. Spanish mortgage terms range from 5 to 40 years, are dependent on age and Spanish finance provider selected. Most Spanish banks will expect the mortgage to be repaid by age 70 but it is possible to obtain a mortgage in Spain up to age 85

Interest Rate Types

Variable rate:
Spanish variable rate products are generally linked to the yearly Euribor interest rate index and your rate will be reviewed yearly. Some offshore banks can provide variable rate mortgages in sterling secured against your Spanish property purchase linked to the Bank of England base rate.

Fixed rate

Fixed rate mortgages are now generally available with terms up to 5 years. Fixed rates are suitable for those who to budget their expenditure for a known period and not experience any surprises should bank rates alter.

Types of lending products available:

80% loan to value with up to 5 years interest only for a 30 year term. Rate from Euribor + 0.75%

70% loan to value full term Interest Only with Fixed rates available in Euros or Sterling.

65% loan to value Stated Income mortgages.

60% loan to value for equity release or re-mortgage with cash release facility and no age restrictions.

Flexible mortgage plan including offset and credit line facility up to 70% loan to value includes up to 10 years interest only facility

Self certification mortgage in Spain up to 60% loan to value for purchase & equity release

Offshore company held asset mortgages up to 70% loan to value for loans above € 500.000 including capital repayment holiday by negotiation

Equity release or re-mortgage in Spain up to 75% loan to value on a repayment basis up to 70% including an interest only facility

Commercial lending up to 70% loan to value

Construction mortgages up to 60% of value of completed project

Land mortgages for plots in Spain up to 50% of value

Many of these products are not available direct from the banks in Spain and will be subject to the lenders criteria and your status. Rates and costs are available in writing on request.

To apply for a loan or mortgage, you will need the following documentation:

Useful Links

Bank References

Bank Statements (for the last three months),

Breakdown of Assets and Liabilities,

Photocopies of Income Tax Declarations,

Salary Slips (last three months)

A Certified Statement of Accounts, if you are self-employed,

QUICK LINKS

Contact us NOW to find out more. - Call from Spain: +34 952 811 280
info@dallimore-marbella.com - www.dallimore-marbella.com