Anyone know anything about Spanish mortgages?

locopoco

I have been looking up spanish mortgages for the last few hours. I am a FTB who wants to buy in Spain as I plan to move there in three years. if I were going by UK rules I could afford an apartment worth £100000 if I got a 100% mortgage and obviously a bit more with a small deposit.

Most of the things I have read though state that in Spain they will only lend 70% Does this mean I have to find a £30000 deposit (as well as the 10% for fees, taxes etc)? It will take me years to save that amount!! If that is the case, is there any way I can raise that money in the UK? Or is it the case that the only people who can afford to buy in spain are those on very high incomes or those with some equity already that they can release?

Any additional help or answers to my questions would be brilliant! :j

locopoco

*********bump************

YorkshireBoy

I've just UK googled "spanish mortgage" and it has returned thousands of hits - many from companies I've never heard of so I'd be wary.

However, on the first page of hits I've seen references to 80% & 85% LTV mortgages so your 70% may be innaccurate. I've also seen interest rates of 3%!!!!

There are links to Leeds & Holbeck BS and LloydsTSB, and also the channel4 website.

As there is a LloydsTSB on almost every high street, I'd probably start there and use them for the basics. Then develop your knowledge by researching the finer points on the internet.

What about attending local Spanish property exhibitions? There's one a week in West Yorkshire where I live - check local press. Just ignore the property salesmen and make straight for the legal "experts". Remember - DON'T SIGN ANYTHING!!

One further tip - search the internet for chat forums regarding Spain. I used to belong to a couple when we took holidays on the Costa Blanca. These are frequented by ex-pats as well who have done what you are doing. I don't know what area of Spain you're looking at but if its the Costa Blanca maybe have a look at...

https://www.torrevieja.co.uk & https://www.torrevieja.com & https://www.lamarinaforum.com

HTH
YB

karenj

Also try https://www.andalucia.com. You can pick up a wealth of information from this site if you pose the question I am sure someone will be able to help. Don't even bother with the surinenglish website.

MoneyMachine_2

Make sure you use a good broker if possible - preferably one who is recommended to you.
A couple who are friends of mine paid a massive broker fee about 3 years ago when buying a property in Florida - something like £3000 as they assumed this was the norm - foolish - but it happens and there will be plenty of people lining up to make some cash out of you.
I am currently registering as a mortgage broker with Personal Touch Financial Services. I know their brokers do broker Spanish Mortgages but you'd have to find their broker in your area. Its somewhere to start.
The contact number for the lady who deals with all Personal Touch's Spanish mortgage business is called Lesley Allison and her contact number is 01564 206638. She should be able to put you in touch with a broker.
Personal Touch are a reputable firm and are authorised and regulated by the FSA so maybe worth a try.

http://www.personaltouchfs.org.uk/33/Contact_Us_65.asp

Good Luck with it and post back to say how you get on, whatever you decide to do.
MM

jvmills

At the moment it is the case that banks will only lend around 70% LTV. This does always mean that the maximum you can get is 70% however, as the Spanish banks do not use the sale price, but rather their own valuation as to how much they will lend against a property.

So for example, you may find a flat for sale at120,000, haggle the price down to 100,000 (more than likely in the current climate). The bank may value this at 130,000 regardless of the sale price. So you can borrow 70% of 130,000 = 91,000.

Therefore in this example you only need to find another 9,000.

This is just an example though!!! Speak to local agents and brokers before getting your hopes too high. More Spanish Mortgages info here.

Good luck.