Arranging Finance to Buy a Property in Spain
With the lifting of almost all exchange controls, both residents
(in Spain) and non-residents may now obtain loans and mortgages against their
Spanish property in any currency from any bank in the world - if they can find
a bank willing to lend against property in another country.
The good news is that the inflation and interest
rates are lower than the UK, with a prime lending rate of
around 4%. Spanish bank mortgages are now being offered at rates between
4.5% and 5%, amongst the lowest in Europe.
Similar low rates are also being offered for the purchase of
Spanish properties from Gibraltar based subsidiaries of major UK building
At the moment it looks an attractive proposition to take out a
mortgage in Spain. The downside is that if the euro begins to recover
in value against the pound, although your property will be worth more, your
monthly mortgage payments would increase.
Normally the maximum term for a Spanish mortgage
is up to 25 years on 75% of the valuation of the property. There are
so many different packages available that we suggest you use the services
of an experienced international mortgage broker who will explain the
pros and cons as well as providing you with the mortgage they feel
would suit you best at the most favourable rates.