Finance for Property Investment in  Spain

PLEASE NOTE Spanish banks DO NOT give a mortgage in principal, without all necessary paperwork submitted and you having secured a property. We are however able to give you a yes or no. As part of our service we recommend the best product to suit your current circumstance and future intentions, although the final decision is yours. You will be given the opportunity to make an informed choice.

100% Mortgages in  Spain

There are 4 ways to obtain this.

• If you are a Spanish resident and have held a PERMANENT contract for 3 years and can provide a permanent contract. 
• Own another property in  Spain with a small or no mortgage. You can buy another one for the same or slightly more in value. 
• Find a property which is undervalued, since loans are based on LTV (loan to value) 
• Buy an off plan way in advance, upon completion with today's market the value would have increased substantially, again based on LTV. 

Non-Residents & Nonresident Mortgages

As a non-resident you can borrow up to 80% of the value of the property. A  UK credit  report is required for 80% LTV, which can be obtained online at www.creditexpert.co.uk, along with the usual documents. We can obtain 70% LTV with the usual documents and no credit report is required. Interest rates are based on Euribor + 1,25%-1,5% depending on amount.

Residents

Upto 100% LTV can be obtained however you must either hold a Residencia or prove  a 2 year working history in  Spain and can provide a valid contracto indefinido (permanent contract).

The term offered is up to 30 years, depending on your age. If you are in your late 60's we can still help you with a term of 8-10 years. Maximum LTV will be difficult to obtain, but this depends on your income.

We can secure up to 10 years on interest only

Most Spanish banks do charge a redemption fee (1%), however not all. Please always tell us your full story, so that we can arrange a Spanish mortgage with a bank that suits your needs. We can also help with interest only the first years, as well as commission to yourself from the bank if mortgage is transferred to new owners when sold.

Equity Release or Re-Mortgage

A lot of buyers went to the "wrong" bank and are lumbered with ridiculous interest rates in the region of 6%. Interest costs could be cut by a third if re-mortgaged. Equity release in  Spain is available for clients who wish to buy a plot of land, another property or just to make your life more comfortable. If amount is 50% or less of what your house is worth, you do not need to prove income, this we can arrange non-status. Interest rates are extremely good. If amount is more than 50% of LTV you need to show income information as well as give details of what the money is to be used for. Max 70%

Improvement Mortgage

This is a mortgage for a property where owner wishes to extend, better or repair the property. Up to 40% of LTV can be arranged. You need to supply estimates from a builder/ constructor. Please see equity release above, which is an easier way of obtaining capital.

Construction Mortgage

If you own a plot of land with no mortgage on it, and have a project including all permissions a construction mortgage can be arranged. Several banks offer this and the products differ depending on your status and type of build. It is normally interest only during the build period and paid to the builder in installments as work is carried out. Interest is only paid on capital used.

Purchase through Spanish S.L., Offshore or any other Company

Maximum LTV in  Spain is 70%. 

Non Status Loans in Spain

It is normally very difficult to obtain capital non status in  Spain , either for equity release or new mortgage. But we can help you through the Loan Centre. You don't even need to explain what you are going to use the money for.

If you only need 50% of value of house, it being a new purchase or equity release. The first year the interest rate is 3.75% thereafter IRPH + 1% (today about 4%), which is almost normal mortgage rate. Minimum amount is €30,000.

We need a nota simple, copy passport, we get a bank reference and instruct a valuation through Sociedad de Tasacion  S.A. All you need to fill in is a simple form/ declaration with your address and income, you don't need to back this up with documents.

This offer is not available if property is registered as "rustica" (house in the country) 

1st4 Spanish Properties acts as an introducer for Spanish and UK based mortgage and loan brokers who offer a wide range of finance solutions for people looking to invest in Spain and the Spanish Islands .