It is important to have your finances in place or agreed in principle. Our associates in Spain offer independent financial advice and will assist or advise you of all the options available. Alternatively we do have associations with independent financial advisors here in the UK who can offer the same service.
Various finance options are available:
- Cash purchase
- Cash from equity release or a re-mortgage of the UK property
- Part cash with the balance on a Spanish mortgage
- Property purchase through existing pension fund.
- Obtaining a Spanish mortgage for a non-resident is a simple process in Spain . The interest rate is usually lower than in the UK Mortgages are available on a repayment basis over 5 – 15 years.
- Should you require a Spanish mortgage this can be arranged for you, the following documents would be required:
- Copy of last P60
- 3 months salary slips
- 3 months bank statements
- If you are self employed you will need to show statements of accounts for the last 3 years.
You will need to have an initial deposit of at least 30% before a mortgage will be granted. Additional charges would be an ‘administration fee’ this is usually around 1% of the total mortgage granted, however it is sometimes negotiable.
In general for every £1,ooo borrowed you will pay around £7 per month.
This will of course depend on the Euro exchange rate.
The rate of exchange can vary enormously and can make a huge difference to the amount you eventually pay, it is therefore advisable to use a corporate currency broker who specialise in this area. Through these specialised companies there are a number of options available to you, one of which is the forward purchase scheme, which guarantees rates for up to 2 years. (Ideal if you are purchasing a new build property).