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Spanish Mortgages are very easy to arrange now. 10 years ago it was much more difficult to find reasonable Mortgage information in Spain and many of the Banks were not geared up for foreign property ownership.
Now however it is a different kettle of fish with many of the UK lending Banks offering Spanish Mortgages through their Spanish Branches and affiliated Banks.
If you are heading off to the traditional holiday home hot spots such as the Costa del Sol or the Costa Blanca then you will find some very familiar UK Banks on the high street.
The dilemma most people are faced with is whether to finance a property in Spain with a Spanish Mortgage or buy re-mortgaging their home in the UK.
One of the obvious pitfalls of taking on a Spanish Mortgage is that the mortgage payments will have to be made in Euros and not pounds. This in turn leaves you open to any changes in the exchange between the Pound and the Euro.
Interest on most Spanish Mortgages is also pegged to the Euribor which is the benchmark rate for the European money markets.
As a Non Resident property owner you will also be liable to various Spanish Property taxes which dont directly affect your Spanish Mortgage but it does have an effect on the running costs of your holiday home.
There are no 100% Spanish Mortgages, most Spanish Lenders will expect or require you to put down a deposit of at least 20%. Some of the Banks even require as much as 50% of the value to be put down as a deposit.
Spanish Lenders are slowly offering more products to the market but please do not come here expecting a huge choice of Spanish Mortgages.
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