A client has just secured a mortgage direct from a major Spanish Bank which may be of interest to anyone still considering their mortgage options.
The Mortgage is taken in foreign currency of your choice and the interest is based on the interest rate of the currency taken. Unlike previous foreign currency mortgage you can change from one currency to another every 3 months at no penalty, so for example a yen mortgage with interest rate of .762% + a broker fee of .0255 + banks charge 1.1% = 1.887% If the yen interest rate goes up you can switch to Swiss Francs, other currencies or good old euros should you wish.
They offer a period of 2 years interest only, and up to 88% of the combined purchase price and costs if this equals less than 80% of the valuation. All avaialable to non residents
Only possible negative is that you pay quarterly not monthly.
Ability to service the mortgage as a % of disposable income is still calculated on the basis of it being a euro mortgage. A small charge of .3 of 1% to convert your Euros to Yen or your chosen currency
Still looking for a catch but havnt found one yet.
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