Want to purchase property in Spain but unsure of your financial options? Spanish mortgages may be the best solution for you. The property market in Spain is still booming and the demand from overseas buyers is still high!
Economic influencers such as Brexit and the low exchange rate are not hugely impacting the market and should not put you off buying now. Read more about the impact of Brexit on Spanish mortgages here.
Why get a Spanish mortgage?
We’ve pulled together 5 key reasons why a mortgage for Spanish property is an option worth considering:
- Interest rates are low – The rates to borrow from Spanish banks are low and our recommended financial advisors at Fluent Finance Abroad can offer Spanish Legal Homes clients exclusive rates starting at just 1.9%! Therefore it may be a more cost effective route than investing solely with your own cash.
- Peace of mind – When obtaining a Spanish mortgage, the banks will do their own due diligence on the property. If they rejected lending against the property, it usually means the property isn’t worth buying or may have hidden legal issues that are unresolved. Having this extra stage of evaluation gives you that extra security during the buying process.
- Short-term loans are available – Spanish banks do offer short term and longer term loans, so you can find a suitable payment plan. When buying a Spanish property, you do not need to worry about being tied into a long term contract. This is a flexible mortgage whereby you can cancel the mortgage without incurring heavy redemption penalties. An example would be when a client is expecting a lump sum in the near future, such as a pension fund or equity from another property.
- Paying it off may be easier than you think – If you are thinking about renting your property out, rental yields can help contribute to mortgage payments. If you do plan to rent, you should seriously consider the location and type of property you are purchasing to ensure the demand amongst tourists is high.
- Get more for your money – If buying a property in Spain is your life’s dream, don’t settle for second best. A Spanish mortgage may help raise funds to purchase a property within the next budget bracket which is in your desired location or closer to the style you want.
Would you like more information about Spanish mortgages?
These are just a few key reasons why a mortgage for Spanish property is a good solution. To learn more or to talk to one of our Spanish mortgage advisors, please complete the enquiry form here. Alternatively, call our team on 01202 971614.
View our mortgage breakdown examples here: €232,000 property and €152,000 property.