Spanish Mortgage - Options??

dmackay41

Any suggestions for alternatives (if any) other than a simple Spanish Euro mortgage??

My scenario is that I own my house outright, no mortgage and no debt. I am 50 and retired (ill health...but not terminal....). My gross income is £26K per annum. No other outgoings. My house is presently valued at £180,000, and I do not want to sell it if I have to.

I wish to buy a property in Spain for at least 120,000 Euros.

I have no dependents.

Present currency fluctuations aside, would it be better re-mortgaging my UK property to raise capital to buy the Spanish property, or trying for a Spanish mortgage and using my Uk home as security. Are these options?..or are there alternatives.

Any suggestions to this scenario???.....Thanks.

Conrad

I'd go for raising in the UK. There are just too many pitfalls in Spain and I wouldnt want a Spanish Bank holding my deeds. I just prefer the regulasted nature of the UK when it comes to such important deals.
Others will argue its good to know a Spanish lender is accepting a Spanish property as it indicates it must be a decent asset with no issues.

One thing I will say is we are going to see incredibly cheap property as so many Brits that have reserved property in the past now cant come up with the finance.

You seem like a sensible person, but just in case you need a pointer there are a few basic rules when buying abroad;

1) Never ever trust an agent. The ones that seem the nicest could well be the best con men
2) Never ever rely upon any statements unless they are writien into the legal contract at outset. So many people make this mistake ("you said there would be a pool" - only to find out it was just a proposal)

3) Always use a large city lawyer even though they cost more. Make sure its a big reputable firm. Small out of town one man bands can dissapear with your dosh and you wont ever get it back ("just pay the money into my account my dear, and I will take care of everything")

4) Be aware of what could change adjacent to your property

5) My number one tip - do not buy off plan. Fadesa, Spains biggest developer has recently gone bust, and many more will follow. BANK GUARANTEES are all but worthless - you wont be able to enforce them.
So dont take a developers risk - let them hand you over a fully built home before any cash changes hands.
Most developers rely on constant cashflow and Bank loans. Forget the glossy brochure that inform you the company is 100 secure, its all meaningless if one day you phone and find the phones have been disconnected.

Best of luck, and sorry if you already know all this