euro mortgages for a house in ibiza

rainee

hi
we are looking at buying a house in ibiza for later on in life would rent out for the times we were not there (although that is very hit or miss)
the banks over there state the max they can loan is 60% of the price. does anybody know of any companies that do it slightly higher ratio
many thanks

Ian_W

Rainee,
In the absence of any other replies I'll take a stab - which may have the effect of getting your query noticed by others.
My general understanding, as a former owner of property in Spain, is that local banks will usually lend 80% LTV, whether 60% is something particular to Ibiza I don't know, but Banco Santander, Sol Bank and the other main ones all offered up to 80% mortgages in the Canaries. Is the deal you're being offered on a new development through the builder?
Second question is why a Euro mortgage from an overseas bank? There are a good number of UK lenders who will now lend on overseas property. Although our interest rates are not as low as the euro zone the repayments would be in £'s so you have no charges or risks in terms of currency fluctuations like you would repaying in €'s. The other alternative, if you have enough equity in your UK property is to remortgage it and pay for the property that way.
Post some more details.

rainee

Hi Ian
many thanks for that.
Its an old property as new ones are very expensive. Ibiza's prices are much higher than mainland spain for property.
I've just bought a couple of magazines today which are listed all 3 options you have so its down to working out which is better for us.

Ian_W

If you want any further info, though I'm probably a little dated, post again or PM me.

When we bought pre-€uro the thinking was to get your finance in the currency you earn in, so we had both a small mortgage from a UK [offshore branch] bank on the Spanish prop and a remort on our own prop. Low € interest rates might have changed that advice.

You often get posts saying Spanish house prices are down on these forums but like the UK it's localised. The island's, certainly Canaries and from what you say Ibiza, are still rising.

Sounds like a nice plan you're putting together, best of luck with it.