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Financing your Property
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SPANISH MORTGAGES can be arranged with a number of banks (all of whom speak English) and is a relatively simple process.
It is important to note that a mortgage in Spain will not affect your property at home. Your Spanish mortgage is only guaranteed by the Spanish property. Some banks offer up to 15 years interest only with finance available up to 80 years of age. Each bank has its own criteria and we will be pleased to introduce you to the one most suited to your circumstances. Generally speaking the bank requires: • Two years tax statements or balance sheets OR • Three months wage slips • Three months bank statements A bank reference may be useful. Non-residents can finance the property up to 70% of the purchase price or the valuation-whichever is the higher. Residents can finance up to 80% Interest rates at the moment vary between Euribor +. 75% -Euribor + 1.5% If there is an existing mortgage on the property you will be able to assume this and ¨top it up¨to the required amount. Under certain circumstances this can be beneficial both time –wise & financially. Even if you do not require the finance a mortgage may be worth considering as wealth tax is calculated on the net value, after subtracting the mortgage, which could mean an effective saving on wealth & inheritance tax. Most solicitors have an in-house tax advisor who would be pleased to advise you. Equity In the UK With interest rates dropping in the UK it may be prudent to release some equity on your UK property. We can recommend Kevin Simmonds at HCF Partnership who will be able to offer expert advice. Contact details :T 020 8731 5151 Kevin.simmonds@hcf.co.uk www.hcfpartnership.co.uk |