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Spanish Non-Resident Mortgages
Non resident mortgages in Spain are both common place and easy to arrange. Of course the key criteria is whether you have the income or wealth to support the Spanish Mortgage. As a non resident of Spain you are usually able to borrow up to 80% of the value of the property.
However the bigger the percentage the more difficult it is to secure the finance. Most banks in Spain are happier lending 70% of the value. If you have got a fairly large deposit and are able to put down 50% of the value then a non resident mortgage is easy to get. Not a formality, but very easy.
How does a loan to valuation work on a Non Resident Mortgage in Spain?
Simple, if the property you are buying is valued at say €100,000 you are able to borrow 70% of that value, i.e. €70,000. This is regardless of whether you are actually paying €100,000 or €70,000. Some banks are getting stricter on their lending criteria as non resident property purchases are slowing down. Many of the banks will now only lend 70% of the lowest figure i.e. the valuation or purchase price. It's best to check this detail with the bank or mortgage broker.
Interest rates on nearly all Spanish non-resident mortgages are linked to the central base rate in Europe, the Euribor. As of today, the Spanish Mortgage Interest Rates are lower than those in the UK.
Before proceeding with a Non Resident Mortgage in Spain it may be worth considering raising money against your UK property. This has the advantage of being immune to any currency fluctuations.
In any Country there are Tax Implications when you own a property in Spain and having a non-resident mortgage may or may not help your tax position as a foreign property owner. Please check this with your Solicitors.
View a full list of items you will need to complete your Spanish mortgage by viewing our Spanish Mortgage Checklist.