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The Cheapest Way to Finance Your Spanish Property

By Michelle Thomas - Fri 2th Apr 2010

Due to the recent collapse of the construction industry and the surplus of property on the market in Spain, many banks are desperate to turn their ‘assets’ back into cash and as such are offering attractive discounts properties that they own or may have repossessed. Such properties are almost always the best deals that you will find on the market today.

The majority of these properties are for domestic as opposed to commercial use and are usually located near to Cities or coastal areas that are not usually suitable as holiday homes, but don’t let that put you off! – there can often be a few ‘diamonds in the rough’.

Looking for this type of property can hold two main benefits: One, simply because of the highly discounted price; and two, because the bank is usually much more flexible when it comes to valuing and financing the property.

The autonomy for this, and the ultimate decision lies with each branch and usually dealt with on a case-by-case basis and, as such, you will often find it impossible to get a definitive statement from any bank on what their policy is in dealing with such properties.

Some people view these kind of offers with cynicism – whereby banks are prepared to be flexible and accommodating with financing, but only if and when certain properties are purchased. Even so, they are still good deals that can not be ignored! These offers are also not well thought of by many Estate Agents and private sellers as the banks are making it very difficult to compete in what is an already strained market. The fact that the market is so slow and that the banks have so many properties to move off their books also means that this situation may be around for a while longer yet.

This is still good news for the buyer though, meaning that it is slowly becoming more possible to buy attractively priced property without having to pay a sizeable cash lump sum - as long as you buy the property from the same bank that you are getting finance from.

The best way to proceed with this option for any buyer is to contact an International Mortgage broker, who often has access to property portfolio’s from Spanish Banks and will already be aware of what properties are available, in what area, for what budget and what finance is available.

Why not contact us today to find out if we can source a Spanish property for you that meets with your requirements and falls within your budget? – Simply click the link (above) and add your details to the form.

Comment on this Blog

Hi Similar to the post below we are serious in buying a property in the puerto de mazzaron / corvera region of Spain but are sturggling with a deposit. We each have an income each month and can pay a mortgage. Can you advise on reposessions in these areas and the chance of getiing 100% mortgage.
Tina Baker - Tue, 24th Oct 2017
Nikki ..Since 2008 the self employed who would have arranged a self cert mortgage or similar type of Mortgage have had a harder time as although I have a v/g credit score and a sizeable deposit the Banks need proof of income. Would the bank require the same if a deposit of around 50% is possible over say a 10 year period term.I would like to find a property at Santa Pola C/Blanca / Moriara Valencia or Nerja Costa Del sol.
Mf - Sat, 22nd Feb 2014
@ Nikki - A small number of Banks will offer 100% Mortgages, however these are typically only on their own portfolio of repossessed properties, which are almost always overvalued anyway. You would be better off scraping together a small deposit and attempting to negotiate a better price on a private sale.
Paul Dawson - Thu, 23rd Jan 2014
Hi We are serious about buying a property and are hoping to buy in mojacar ideally a 3 bed property We are struggling with deposit but have income each month we can pay mortgage with We have some funds to cover cost of buying and fees etc Can you advise on reposessions in this area and chances of getting 100 % or. Close to this mortgage ? We can travel out to Spain to view in near Future thanks
Nikki Armitage - Wed, 22nd Jan 2014
Potentially interested in apartment in Barcelona and/or Girona up to 100K. If you see good offers please let me know. Thanks !
Zina - Thu, 10th May 2012