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For those persons who wish to buy in Spain but have insufficient capital resources or who do not wish to employ all those resources in the acquisition, there are two options which can be considered.
Firstly, if the prospective buyer has a house in the United Kingdom which he or she will be retaining, and there is sufficient equity in the property (the difference between the current value and any mortgages and loans on the property), it may well be possible to mortgage or remortgage on the security of that property. The advantage of this is that the loan is being made in the buyers own earning currency and the often sizeable fees and taxes on a Spanish mortgage are avoided.
For those people who do not have enough equity in their primary residence or do not wish to take out a mortgage by this method, a mortgage can be obtained using the property in Tenerife as collateral. Rates and lending periods are constantly changing, but at the date of this article, mortgages of 65% of valuation were available with a minimum loan of £30,000. Loans are available in all the major currencies, with Euro loans tending to be the cheapest, starting at about 5%. It should be borne in mind that if the mortgage is taken out in a currency which is not the one in which you earn income, you are at risk if the exchange rates should fluctuate.
Whilst the costs of taking out a mortgage on your Spanish property may be higher, one advantage is that if you decide to sell the property at a later date, the new owner may well be able to take over the mortgage, subject of course, to status.
We can introduce you to suitable lenders and to mortgage brokers if you so wish.
Mortgage Brokers in the UK who deal with mortgages in Spain include:
Simon Conn
Conti Financial Services
204 Church Road, Hove, East Sussex BN3 2DJ
Tel: 01273 772 811 Fax: 01273 321 269
Website: www.mortgagesoverseas.com Email: enquiries@mortgagesoverseas.com
Kevin Sewell
Mortgages & Investments
37A Market Place, Devizes, Wiltshire SN10 1JD
Website: www.internationalmortgages.org Email: ksewell@internationalmortgages.org
