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There are four main options available when financing a property
purchase in Spain:
1)
Spanish banks, using Spanish property as security.
2)
Offshore lenders, using Spanish property as security.
3)
Re-mortgage/Equity release from assets in the UK, using UK mortgage
lenders.
4) A combination of Spanish and UK mortgage.
There are several differences between raising finance in Spain and
raising finance in the UK.
* Mortgage Multiples
-In
the UK, the amount that can be borrowed is based on a multiple of the
client’s
gross income.
- In
Spain, the amount that can be borrowed is based on the monthly
mortgage repayment-this cannot exceed 1/3 of the client’s
net monthly income (after all existing borrowing)
*
Mortgage Loan-to-value.
-In
the UK, the amount that can be mortgaged is calculated as a percentage
against the purchase price.
- In
Spain, the amount that can be mortgaged is calculated as a percentage
against either the valuation of the property or against the
purchase price, depending upon which mortgage lender is used.
For
more information on Spanish, Offshore and UK mortgages, please
complete the form located in the section entitled
“Contact
Us”. |
