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Buy Let Mortgages Spain
Submitted by Hal Cherry on 25/Nov/2004
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Buy Let Mortgages Spain - Guide to the best Spanish Buy to Let Home Loans for your needs from the Mortgage Shop
Spanish Buy-to-let mortgages are great for not only existing homeowners who want to buy another property for the purpose of letting it out but can also be used to a**t finance and run your holiday home in Spain for your short term occupancy (in the winter for instance). Buy let mortgages are similar to other mortgages, there will usually be other conditions attached. The lender will accept a lower loan to value and may also specify requirements regarding length of letting terms and minimal rental income as a percentage of property value.
http://www.tms007.co.uk/enquiry.php?from=eumortsspainreeuboard
Spanish Property Mortgages, Loan-to-value percentages, range from 50% to 100% dependent on the bank and whether you are a resident or non resident. The most common funding we offer for non residents is 80% of the Spanish property purchase price or valuation which is the same through out the Spanish mainland, the Balearic and Canary Islands of Spain.
Sourcing Spanish Mortgages
Some Spanish banks will only deal with residents of Spain, some with only non-residents and some offer the mortgage to both groups through a different percent LTV (loan to valuation of the property in Spain) and interest rate. The APR can be as low as 3.00% rising to a staggering 17% in some extreme cases, dependant on circumstances. Proof of income is often a stumbling block for mortgagees due to in some instances of the applicant being paid in cash or if your accountant has worked wonders to mitigate your tax liability, how can you prove to a bank that you can afford the repayments?
Spanish Loan Introductory / Administration fees
All of the Spanish banks will charge an administration fee, which is basically a fee for the bank arranging the mortgage. This can be from £250 to as much as 2% of the purchase price or valuation of the property in Spain. In many cases, an early repayment charge, known in the UK as a redemption penalty will be charged, which vary between £250 to as much as 2% of the amount repaid for early redemption/repayment of the Spanish mortgage.
What loan to value Spanish Mortgage do I need?
Spanish banks differ widely in their criteria for loan to value. If it is a straight forward residential property purchase then most banks will make an offer which is often only 50% of the actual declared Spanish property purchase price. This makes life very difficult for people buying mortgages in Spain as often the difference between the actual purchase price and the declared purchase price is huge leaving short falls! Be assured that our lenders offer us superb flexible arrangements to get around this problem in most cases.
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