Spanish Mortgages

Click here for an in principle decision for a Spanish mortgage

Espana Home

Europe remains the most popular holiday destination for Britons, accounting for over 80% of visits abroad, with Spain topping the charts at 13.8 million visits in 2004, and some of those now have a Spanish mortgage on their own piece of Spanish real estate.

It all started in the 1980's with a surge in tourism to the Costa Blanca and Costa del Sol beach areas, and is still going on today, with over 67,000 holiday home bought in Spain during the years 2002 and 2004, and most of them needing Spanish mortgages to purchase.

The inflated value of UK homes has enabled UK home owners to capital raise the necessary deposit needed  to enable a Spanish mortgage to go through, and the "cheap flight" airlines have helped with the commuting aspect.

Euro mortgage rates have helped immensely with Spanish mortgage interest rates coming in at about 2% less than their British equivalent, and there are now suntanned middle aged commuters in every local UK pub, propping up the bar with stories about the warmer winters and healthy lifestyle.

Last year there were about 60,000 Britons picking up their pension in Spain.

The maximum loan to values on Spanish mortgages are typically a lot lower than in the UK, which means mortgage deposits of around 20% are often needed. The most common means of raising the 20% is by remortgaging the UK home (in some cases the Spanish property can be bought outright, without the need for a Spanish mortgage, if there is sufficient equity)

Although it is possible to have a sterling mortgage secured against a Spanish property, the SpanishEuro mortgage is so much lower that is simply doesn't appear to make any sense, and the Spanish banks are fighting over the business to be had with issuing Euro Spanish mortgages to an ever increasing clientele.

Could this be the reason for Banco Santander buying out the UK based Abbey bank.

The process of buying in Spain is complex, and anyone contemplating this route would be well advised to enlist the help of the experienced advisors available. Many UK brokers have now relocated abroad to supply the demand for English speaking mortgage brokers who can steer the way through and deal with the banks and legal bodies on the buyers behalf.

Getting a Spanish mortgage is only part of the issue, the buyer must also allow between 10% and 12% for other legal fees and taxes.

If you click the link above, you can send your details to a group of UK brokers based inn Spain, who can make contact with you to provide help and information, and arrange your Spanish mortgage for you.