Buy to let Mortgages in Spain are easy to arrange, particularly for a non resident. The main issue surrounding the buy to let mortgages is whether you have the financial clout to support your mortgage application.
The lower that the loan is with regards to the value of the property the easier it will be to obtain your buy to let mortgage. For example any buy to let mortgage that is higher than 80% of the value of the property is hard to get, any buy to let mortgage that is only 50% of the value is fairly easy to get.
The actual value of the property is not necessarily what you are paying for it! The value is what a qualified and recognized valuer places on the property. This figure could be higher or lower than the price you are paying.
If the Valuation figure is lower then you can only borrow a certain percentage of the lower figure. If on the other hand the value is higher then you can borrow a percentage against the value irrespective of what price you are paying.
Normally the interest rates on buy to let Mortgages in Spain are pegged to the Euribor which over the last few years has been lower then the interest rates set by the Bank of England.
Before you fully commit yourself to a buy to let property or portfolio in Spain, remember to check out your position with regards to capital gains tax, inheritance tax and your exposure to any currency fluctuations between the Euro and the Pound.
