Financial Services
Hudson International Marbella work with a number of Independent Financial consultants who have expert knowledge and experience in dealing with both Spanish residents and non- Spanish resident buyers. They are always up to date with current offers and can advise you on what finance option is best for you. We have also included answers to some frequently asked questions for your information:
Q. What is the maximum borrowing level in Spain?
It is possible to borrow up to 80% of the property value however this cannot be higher than the purchase price eg. Property purchase price is 300,000€, property values at 450,000€ , 80% loan to value is 360,000€ however maximum borrowing is 300,000€.
Q. Can I borrow on an Interest Only basis ?
Yes, you can borrow up to 80% on an Interest Only mortgage. The term for the interest only period varies from 5 years to 25 years depending on the Bank.
Q. What is the interest rate for Spanish Banks?
Rates vary depending on lender and loan to value required. It is variable rate and linked to the euribor (Euro Interbank rate) and reviewed either monthly or annually dependant on the mortgage.
Q. Are there restrictions on the borrowing in relation to income?
Yes, monthly repayments cannot exceed 1/3rd of your NET monthly income, after tax and liabilities. It can be assessed on more than one income.
Q. How many years can a mortgage run?
Mortgages can be arranged up to 40 year term or to age 80 whichever is earlier subject to normal conditions
Q. Is the term affected by age?
Yes, maximum is to age 80
Q. Are there redemption penalties?
Some banks charge a 1% redemption penalty for early cessation however you can make partial repayment with no penalties.
Q. What are the costs of borrowing in Spain?
The banks charge an arrangement fee of between 1%-2% of the value of the loan and deducted from the advance. There are additional costs depending on the amount of the loan. Your lawyer will provide details of exact costs prior to completion.
Q. Can the monthly repayments be made in sterling?
If the mortgage is with a Spanish bank then the repayments are in euros. Sterling mortgages are available through banks in Gibralter.
Q. Can a mortgage be raised to buy off -plan?
The mortgage can only be raised once the property is completed.
Q. Are non-status mortgages available in Spain?
Yes, non status mortgages are available for 60% loan to value for EU residents.
Q. Is it possible to re-mortgage a Spanish Property?
Yes, it is possible to a maximum of 60% loan to value for non-residents and 70% loan to value for residents.
Our fully UK trained mortgage consultants are independent and work with a panel of banks & building societies to get the right deal for you. They can also provide you with information on all the insurance products available to you in Spain.
For all UK financial services please contact www.hendersonstone.co.uk