Inroduction to Mortgages in Spain
If you are looking to purchase a property in Spain, then you may be thinking about obtaining a Spanish mortgage from a Spanish bank to help finance it. This may initially feel like a difficult and perhaps stressful task. However, providing you do your research it doesn’t need to be.
In the past, the Spanish norm with regards to mortgage types was to get a variable rate mortgage. In recent years it has however become much more common to get a long term fixed rate mortgage. The average Spanish mortgage is around 60-70% of the value of the property for non residents. This will of course vary depending on the buyers personal circumstances.
If you are planning on using a Spanish mortgage to finance your new Spanish property then we would recommend you begin your research before viewing any properties.
It would be in your interest to have your financing sourced and agreed before beginning your property search. It is not uncommon for buyers to find their dream home only to face the heartbreaking reality that they are unable to afford it. You will enjoy your journey finding your new Spanish property far more enjoyable with the knowledge you have the funding in place and are in a position to make an offer.
International Mortgage Brokers
At Las Colinas Property For Sale, we work alongside experienced mortgage brokers specialising in international mortgages. We would always suggest an international mortgage broker for a number of reasons.
The first and perhaps the most obvious point to be made is that an international mortgage broker will have extensive experience in international property markets. Many buyers assume the process when getting a Spanish mortgage is the same as it is at home but this is not necessarily the case. It is therefore important to use a mortgage broker who will understand the laws, rules, regulations and so on in Spain.
As well as being educated in the property market international mortgage brokers will have bilingual staff. This is hugely beneficial if you do not speak Spanish yourself as you don’t have to worry about language barriers. This is particularly useful when you will be discussing mortgages which can involve technical and confusing terminology.
With knowledge and experience in the Spanish property market comes well established professional relationships. International mortgage brokers will have secured high volumes of mortgages in Spain and made many such relationships. This can contribute to the fact they are likely to have access to better deals than if a buyer were to approach a lender directly.
Their position as a professional also means they are able to make demands that a client could not. For example it is not uncommon to hear of lenders insisting buyers opt in to costly insurance products which may be totally unnecessary. A professional mortgage broker would be able to advise you on what is necessary and negotiate, stripping out such products. Their knowledge and expertise will prove a valuable resource to have on your side and could save you thousands.
Getting a Spanish mortgage does not need to be a stressful experience and at Las Colinas Property For Sale, we will be with you every step of the way. If you have any questions about Spanish mortgages or anything else at all then please contact us. We are always here to help.