Welcome to our March newsletter. Last month we announced that we had been accepted onto the UK’s Financial Conduct Authority (FCA) register. This month we can report that one of our advisers is now licensed to offer UK mortgages, including UK buy-to-lets.
If you have a client who has been declined a Spanish mortgage or who has a shortfall on the deposit for a Spanish property purchase, the solution may be to release equity from their UK property. Although many banks prefer that the deposit does not come from borrowed funds, some are open to it for clients with good profiles and who pass the affordably checks. Alternatively, if the client borrows all the purchase funds on their UK property and comes to Spain with cash in their hands, this can be attractive to the seller and a lower price may be negotiated due to the potential for a quick sale.
Hot news: re-mortgages now being offered!
We have just heard from one of the banks we work with that they are now offering re-mortgage products to non-residents. If you have clients who have signed a mortgage with an interest rate higher than 2.50%, they may be able to switch providers. The new bank pays the costs of the new mortgage - the valuation, registry, notary and gestoria fees. We had been expecting this to come now that the bank has to pay the AJD tax on the mortgage and other associated costs, meaning that the client doesn’t pay these costs twice. We haven’t submitted a case yet as the announcement was made at the time of writing. Let’s see if more banks follow suit...
Spanish speaking advisers & fiscal residents
While our main market is non-resident/foreign clients, we are completing more mortgages for fiscal residents and Spanish-speaking clients from other countries. For fiscal residents, we ask that they speak with their own bank first (in Spain), as they are most likely to get preferential terms due to the bank having a better understanding of their income history and spending habits including debts. We have Spanish-speaking advisers, so please get in contact if you have Spanish-speaking clients who would prefer to talk to someone in their own language.
For any mortgage-related enquiries, please don’t hesitate to get in contact
From Euribor + 1.6% = 1.6%
Current Euribor -0.108%
Fixed interest rates
From 2.15% for the whole term (20 years). Terms up to 30 years
Mortgage products & process
For further information on mortgage products, please refer to our website. Our step-by-step guide also helps clients understand how the process works.
To receive a mortgage quote with no obligation, please complete our online form or contact one of our qualified advisers - please rest assured that all information is treated as strictly private and confidential.
Required documents & charges
In terms of the documents required, we do not need these to provide an initial quote. Please refer to our charges page, which gives an example of the costs involved in a typical house purchase. Depending on the area of Spain, clients should allow between 12-15% of the declared price to cover all fees and taxes.