The Spanish property market continues it´s recovery. GB Abogados are experiencing much more activity in the property market in recent months.
The movement in the property market, particularly in coastal areas, is led by foreign buyers. The mix of nationalities largely comprises the northern European nations.
Post-Brexit result
Despite the aftershock of the Brexit decision, UK buyers remain very active in the market. One of the most significant issues faced by UK purchasers of Spanish property is the weakened pound.
The exchange rate has dropped quite considerably since the result of the UK referendum in June.
Many of our clients are countering this issue by taking advantage of the low mortgage interest rates in Spain.
What rates can I expect to obtain?
There are a range of fixed and variable rates available to foreign buyers. Variable rates can start from a little as 1.5% for the first year. Several banks are offering long term fixed rates from under 3%.
The loan to value can be 60% – 70% of the purchase price, depending upon lender and valuation.
Why should I consider buying with a mortgage from a Spanish bank?
The main benefits of obtaining a mortgage to purchase your property in Spain, are that it removes the need to exchange sterling into euros at a time when the exchange rates are lower than the historic norm.
The interest rates are very competitive, which means the cost of borrowing is very reasonable.
Purchasers who intend to rent out their property in Spain, can also benefit from tax relief on the mortgage payments. So in some circumstances there can be tax advantages to a mortgage with a Spanish bank.
How can you help?
Our accounts and finance department has been helping foreign clients to purchase in Spain for many years.
Our multi-lingual team of accountants are on hand to provide expert advice to ensure that you are aware of your options and how to best proceed in consideration of your circumstances.
Are you tied to one mortgage lender?
No, we work with several banks in Spain. We have strong working relationships with the banks in Spain who offer mortgages to foreign nationals.
This ensures that we know the best bank for our client´s needs. For instance, if a client requires a fixed rate mortgage, we are familiar with the lender who offer the best fixed rates.
You can read more about Spanish mortgages here including example rates and documentation requirements.
If you would like to discuss the possibility of applying for a mortgage in Spain, please don´t hesitate to contact us for a no-obligation consultation.
