Loan secured against overseas properties.

guerlain

Good evening,

I need 25000 pounds and was wondering if you could give me some advise. Considering my annual income (22000) any bank will give an unsecured loan right? but I own a few properties in Spain, will any bank give a loan secured against these overseas properties?

Best regards

DevCoder

No bank will give 110% against your annual incomings, I assume you meant no bank will give me an unsecured loan.

The trouble with overseas properties is that the valuation process is more expensive to ensure the collateral, thus the credit facility will be more expensive and the Loan to Value ratio will be far lower.

You could seek a loan in Spain against the properties then SWIFT/FP the monies.

guerlain

Thanks krisdorey for your quick answer.

Many of the Spanish banks are reluctant to lend any money because of the current economical situation, that´s why i´ve been looking for other options.

The trouble with overseas properties is that the valuation process is more expensive to ensure the collateral, thus the credit facility will be more expensive and the Loan to Value ratio will be far lower

Besides this, do you reckon any British bank will lend me the money?? I need 25000 pounds and the value of the properties is around 140.000 pounds

thanks a lot.

DevCoder

Some might, I might be looking outside the UK mainstream though, maybe banks with european wealth management (Barclays, Soc gen, Santander, BNP Paribas et cetera)

gb12345

guerlain wrote: »

Many of the Spanish banks are reluctant to lend any money because of the current economical situation, that´s why i´ve been looking for other options.

And any non-Spanish bank is likely to take a similar stance



They might be worth 140k now, but if the prices continue to drop , why would they want to take the risk if they can lend to someone with better security.

Then add in the difficulties and costs in repossessing and the problems that they would have in selling it afterwards.

Brock_and_Roll

Guerlain, you are going round the boards with this. As has been pointed out elsewhere:

1) You have absolutely no hope of getting an unsecured loan of the amount you want given your current income.

2) There is no hope of getting a British bank to take property in Spain as security.

3) There is very little hope of getting a Spanish bank to advance funds secured against these.

As you have previously been advised the obvious and easiest solution is to sell one of these properties.

gb12345

Original thread is here https://forums.moneysavingexpert.com/discussion/4472235=

@OP, you're not going to get a different answer just by starting a new thread so why waste everyone's time?

DCFC79

Thought I recognised the Username, you wont get a different response by starting a new thread. The last reply on the other thread was to sell 1 of the houses which will give you the money you require plus a small pot of cash to put away for the future.

iolanthe07

It is very difficult to sell properties in Spain at the moment. Those that do sell have to be heavily discounted.

DCFC79

iolanthe07 wrote: »

It is very difficult to sell properties in Spain at the moment. Those that do sell have to be heavily discounted.

Yes theres also that as well yet I dont see another option for the OP.

Thrugelmir

iolanthe07 wrote: »

Those that do sell have to be heavily discounted.

Not a discount. The selling price is the market value.