How To Guides
- Childbirth & Education
- Legal Formalities
- Pensions & Benefits
- Property & Accommodation
Did you know...?
... Telefonica are NOT the only service provider of Telephone Lines, Internet Access or Mobile Phones?
Tumbit recommends Telitec Communications. Find out how Telitec Communications can help you here!
- Airports and Airlines Spain
- Paramount Theme Park Murcia Spain
- Corvera International Airport Murcia Spain
- Daily brief -Friday 28 August 2015
- When Expat Eyes Are Smiling
- Meet Wincham at The Homes, Gardens & Lifestyle Show, Calpe
- QROPS 2014
- Spain Increases IHT in Valencia & Murcia
- Removals to Spain v Exports from Spain
- The Charm of Seville
- Gibraltar Relations
- Retiro Park : Madrid
- Wincham announce opening of Marbella office
- Community Insurance in Spain
- Calendar Girls
- Considerations when Insuring your Boat in Spain
- QROPS – HMRC Introduces changes that create havoc in the market place
- QROPS – All Change From April 2012
Spanish mortgage lending relaxed
Spanish Banks finally seem to be relaxing their lending criteria, and a few of them are now offering more attractive deals and higher Loan to Value (LTV) percentages. But, that said, it does seem that many banks are still being cautious when it comes to assessing a client’s affordability – or suitability to repay any loan awarded.
Whilst the majority of banks today use a debt / income ratio of between 35% - 40%, a select few offer 50% which helps those borrowers who struggle to get mortgages elsewhere due to having a higher ratio of regular outgoings on mortgages, loans, credit cards etc... to disposable income – which is what is meant by the term ‘debt / income ratio’.
The eurozone base rate has been static at 1% for some time now, and as such borrowing in Spain is still cheap (if you are successful in getting a loan or mortgage). Now that any signs of an imminent financial recovery in Germany is slipping away and that there are problems with the economies of the PIIGS countries (Portugal, Italy, Ireland, Greece and Spain), it is very unlikely that there will be an increase in rates in the very near future.
As far as the exchange rate is concerned, the figures are roughly the same as last month. Dual-currency mortgages are available, which means that clients can opt to pay the mortgage in pounds sterling instead of Euros and avoid any currency fluctuations.
If you are considering buying a property as your main residence, we can offer a mortgage which is up to 80% of your bank’s valuation. This means that if the valuation is higher than the purchase price (Which is common in Spain – especially in today’s market), then it is possible to borrow up to 100% of the purchase price, which is something that has been impossible during the recession.
The interest rate is as low as Euribor (annual) + 0,66% (the lowest we have come across to date), with 0,5% bank opening commission and 0% redemption penalty for partial redemption.
One more benefit is that borrowers can choose to have up to 2 years’ interest-only repayments. The same lender also offers remortgage products. Terms are available up to age 75 with maximum 45-year duration.
The only disadvantages with this product appear to be the compulsory insurances and that the client’s income needs to be paid into an account with the bank.
For more information on this particular loan, or indeed any of our other mortgage products, then please contact us (via the link to our own page, above) and one of our Independent consultants will get back to you at your convenience.
- What is the Euribor ?
- How to Buy a Timeshare in Spain
- Buying from an Estate Agent vs a Property Finder
- Choosing an Estate Agent
- What is an ICP and Why do I need one ?
- Should I Take Out Life Insurance ?
- The Catastral : The Tax Value of a Property in Spain
- Court valuation of Spanish Properties
- Landlords : The Tenant Eviction Process
- What is a Community of Residents and what does it do ?
- Transforming Your Underbuild
- Do buyers need a survey if a property is guaranteed?