SPANISH FINANCE
A Free Buyers Appraisal
Information designed for you
There are many ways to arrange for the payment of your Spanish property and countless banks and mortgage brokers offering you hundreds of different complicated mortgages.
As everybody's circumstances are different the only way to really know your options is to talk to an independent company who have experience with both Spanish property and how to best finance it. Making choices which are right for you and matching the right financial solution with your particular circumstances can and should save you thousands.
We can offer you a Free Buyers Appraisal showing you not only how much it will cost to finance your new Spanish home but also, more importantly, how to use the right combination of solutions to make your purchase as easy and cost effective as possible. Our Appraisals are without any obligations whatsoever and are available whether or not you are considering purchasing a property with us at Spain the easy way.
Spanish Property Payment Procedure
To secure any Spanish Property usually takes a €3000 holding deposit. Balance payments are generally as follows.
Resale Properties require the balance in full upon completion which can take anything from as little as 6 weeks up to about twelve weeks.
New Properties purchased direct from the builder usually require payment upon completion which is usually between 30 & 90 days depending upon the arrangements made with the builder.
Key in Hand Properties are new properties fully completed and sold by the builder. They usually require payment in full within 60 days. Upon payment of a deposit (usually between 10% & 30%) the payment periods can sometimes be extended.
Off Plan Property is usually financed with staged payments. Typically you may pay a deposit followed by two or three further payments as the property is built. Off Plan property can have a build time of anything from a few months to a year or more allowing you to plan your finances well ahead of time.
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Glossery Of Terms
Spanish MortgageSpanish Mortgages are currently cheaper than UK mortgages because the European interest base rate is lower than for the UK. Many buyers take advantage of this to part fund their Spanish property. The maximum allowed for a Spanish mortgage is usually up to 70% or 80% of the property value. Spanish mortgages are usually used as part payment for a property along with savings or an equity release scheme.
Agreement in Principle
A lender agrees to funds upon the verification of a borrower s details.
Base Rate
The rate of interest set by the Bank of England or the European Central Bank.
Bridging Finance
If you are moving to Spain full time Bridging Finance may be used to fund the payment of a Spanish Property whilst you are waiting to complete on the sale of a UK property. Bridging finance is often favoured by British people who are moving to Spain.
Capped Rate
A capped rate mortgage sets a maximum rate of interest that the lender can charge, but only for a specified period.
Concrete Construction
A property that has been built with conventional materials. Some lenders may refuse to lend or charge higher rates of interest, on Spanish property built using unconventional materials or techniques.
Deferred Interest Mortgage
A mortgage in which some or all of the interest is not paid for a particular period, usually at the start of the term.
Early Repayment Charge (ERC)
A charge levied by the lender as a penalty if a mortgage is paid off within a specified time period.
Equity Release
Funds released from the equity in your first property to go towards the payment of your second property - A very popular option for UK homeowners.
Expatriate
A person working in a country that is neither their country of birth nor nationality.
Fixed Rate Mortgage
A mortgage under which the rate of interest has been fixed for a specified period of time.
Foreign Currency Mortgage
A mortgage that is taken out in a currency other than UK Pounds Sterling. European base rates are currently lower than in the UK making them attractive to buyers of Spanish property.
Initial Fees
An estimate of the total fees payable for arranging a mortgage.
Interest Only Mortgage
The repayments on an interest only mortgage are lower than on a capital and interest mortgage because, as the name suggests, you pay the interest only for the duration of the term and the full loan amount at the end of the mortgage. These types of mortgages are particularly useful for people who wish to own a Spanish property but wish to keep their monthly mortgage repayments to the minimum.
Intermediary
A company which matches borrowers with lenders. An intermediary will usually receive a fee directly from the lender for these services.
Lender's Fee
A charge levied by a lender to cover the costs of arranging a mortgage.
Loan to Value Ratio (LTV)
The proportion of the property that the lender is prepared to loan usually expressed as a percentage.
Mortgage Valuation
A survey to assess the value of a property. This is the simplest type of property survey and is generally the minimum required by a lender.
Non Status Mortgage
A mortgage that is offered without the need for the borrower to provide proof of their income.
Refinancing
The paying off of one mortgage with the proceeds from a new mortgage, using the original property as security.
Remortgaging
This is where a new mortgage replaces an old one and both use the same property as security.
Valuation Fee
A fee charged to cover the cost of a valuation, typically paid by the borrower.
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