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Mortgages in Spain are far easier to get now than they were just 10 years ago. You will even find a large number of UK Banks with branches in the main tourist and Expat areas.
This doesnt mean that you should ignore getting a mortgage with Spanish Bank but you may find it easier to deal with a Bank that is affiliated with your Bank at home.
One of the main things you need to consider when taking a Mortgage in Spain is that the repayments will be in Euros not pounds. As most UK property owners in Spain get paid in pounds it means that they are venerable to any changes in the two currencies.
For example when I first purchased a property in Spain with a Mortgage (in euros) the exchange rate with
the UK was ¬1.59 for every pound. The exchange rate today is around the ¬1.40 mark meaning the mortgage payments would have increased by 12%.
All the leading Banks in Spain are willing to provide Mortgages to Non Residents and each of the Spanish Lenders will have a specific range of products and terms that it is able to offer you.
As a rule of thumb you will need a deposit of about 20% of the value of the property that you are intending to purchase along with a further 10% of the purchase price to cover the expensive Spanish property buying costs.
You should also note that there are hardly any Non Status Mortgages in Spain and all Banks will require you to prove that you have the income or wealth to cover your Spanish Mortgage.
One final thing to remember is that Mortgages in Spain are generally linked to the Euribor. The Euribor is the Central European Interest Rate. Over the last few years the Interest Rates on Mortgages in Spain have been significantly lower than those in the UK. |