Spanish mortgage

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This topic contains 8 replies, has 7 voices, and was last updated by Profile photo of marios marios 11 years, 2 months ago.

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  • #51197
    Profile photo of Anonymous
    Anonymous
    Participant

    All,

    I’ve received a letter from the developers of my off-plan property to say that since it is near completion, they can arrange a mortgage for me (70% LTV) with Caixa bank for EURIBOR + 1% for upto 25 years.

    I don’t automatically want to go with them without first seeing if I can get a cheaper mortgage elsewhere.

    Does anyone know if it’s possible to better this interest rate?
    Oh, and whilst I’m here – what exactly IS the Euribor rate at present – is it 2.75% or 3%?

    Many thanks in advance.

    P

  • #58629
    Profile photo of Anonymous
    Anonymous
    Participant

    Punjabi,
    Those conditions aren’t bad I have to say. You might be able to find Euribor + 0.75% but it’s not easy for non-residents to get this.

    Euribor is just over 2% at the moment.

    If you want to try and better those mortgage conditions then send in an application and I’ll forward it to a good broker:

    http://www.spanishpropertyinsight.com/spanish_property_solutions_mortgage.htm

    Mark

  • #58674
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi,

    I am currently buying in Spain and as a non resident I have been offered a good deal from BBVA –

    Interest rate = Euribor + 0.95%

    Loan to Value (LTV) of upto 80%

    Opening fee of 0.65% (can be up to 2% with other lenders)

    1st 3 years of loan = interest only

    What they can offer on the spot depends on the size of the branch. If you contact a BBVA branch and they say that they can’t match what I’ve listed above you can ask them to call their head office to get authorisation.

    You should be able to haggle for even more concessions if you open a bank account with BBVA.

    Hope this is of some use to you.

    Regards

    Greenhill

  • #58698
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi there. We are buying a villa in Javea and have seen this article about Caja Madrid offering foreign buyers in Alicante Euribor+0.90 over 25 years: http://www.euroresidentes.com/Blogs/property-spain/2005/08/mortgages-for-non-residents-in.htm

    We’ve made an enquiry and will let you know what their final offer is including all other costs 😉

  • #58845
    Profile photo of Anonymous
    Anonymous
    Participant

    Punjabi….Please be sure to check your contract with the developer. It may reveal a closure charge if you do not take the mortgage available via them. This will obviously need to be added in to your costs for you to fully assess whether opting for an alternative lender is a true economic positive.

  • #58853
    Profile photo of Anonymous
    Anonymous
    Participant

    Greenhill, Guest etc – thanks all for replying.

    I went to see the manager in Murcia a couple of weeks ago, and Caixa bank have offered me EURIBOR + 0.65% for 25 years.Yippee!!

    To put this into numbers – a mortgage of 150,000 Euros, will mean payments of 692 Euros/month.

    Guest – the “closure charge” is not an issue – as the bank actually owns 50% of the company developing the urbanisation – in fact, Caixa is the bank that the developer WANTS me to take a mortgage with.

    So, I’m very happy with the result.

    Thanks again all.

  • #58854
    Profile photo of Anonymous
    Anonymous
    Participant

    It is encouraging to see that at least one person has a successful property purchase in Spain. Congratulations! I hope you have an enjoyable time in your apartment for many years. 🙂

  • #58856
    Profile photo of Anonymous
    Anonymous
    Participant

    I recommend La Caixa bank. I’ve found them to be more flexible than the rest, and far more helpful. The manager at my branch is an absolute star, too. I never found another bank manager who would keep the bank open for an hour because I had been delayed getting there. Top marks!

  • #58859
    Profile photo of marios
    marios
    Participant

    I am with the Halifax Espania

    My rate is 1.25 above monthly euribor,I am not impressed at all with the Halifax and I hope they read this,when I took out my construction mortgage they did not tell me about all the fees,yes I knew I would pay 1% charge but I did not know about all the other fees,ok so mainly taxes and notary fees etc that I must pay fair enough but what I do protest to is having to pay for the privelige of putting the staged money into my account to pay the builder,1000€ for 59,000€ and again everytime the Halifax put some of the mortgage into my account I am going to have to pay again its scandalous.

    I was not told about these fees,they have told me its for
    Notary : 500 € , Property Register : 200 €, Gestory: 310 €why the hell do I need to pay these people just for the Halifax to put part of the mortgage into our account to pay the builder is beyond me,anyone else have staged payments into there account and have to pay for getting it put there.

    Mark is this the norm here in spain.

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