Mortgages
At JW
Finance we have contracts in place with Spain’s major banks and are
able to offer a range of mortgages that best suit your requirements.
Our mortgage range includes:
Non-residents can borrow up to 80% of the ‘value’ of the property
when purchasing, which means you can achieve a 100% mortgage if you
find a bargain!
Residents
can achieve 97% with certain banks.
It is
possible with some banks to have a mortgage over a 35 year term or
up to age 80. Minimum terms are normally 10 years with 15.000 Euros
being the minimum mortgage amount.
Mortgages
Interest
rates for standard capital & interest mortgages start from as little
as 3.25%, but are subject to individual circumstances and the amount
of mortgage required. A typical rate is 3.50% being Euribor + 0.5% (Euribor
is the equivalent of UK Base Rate)
All Spanish
lenders charge an arrangement fee for new mortgages. These vary from
1 – 1.5% dependant on your requirements. Typically you should budget
for a fee of 1.5% of the mortgage amount.
Re-mortgages
Raising
capital on your existing home should carry the same conditions as a
mortgage for purchase purposes, however, the amounts you borrow may
vary with many banks offering only 70% of the value of the property
for security purposes. Interest rates and fees are similar to
standard mortgages.
Non Status Mortgages
These special loans have their own
rates and fees, which reflect the increased risk from the lender,
having no proof of income. The interest rates and arrangement fees
tend to be higher. Currently only two lenders in Spain are offering
this product with a maximum mortgage of 50% of the valuation or
purchase price.
Commercial
Mortgages
Banks typically lend between 50 and 60% of the purchase of
commercial premises with a maximum mortgage term of 15 years. If
purchasing, existing business/trading accounts will be required.
While banks prefer applicants to have previous experience, this is
not essential as additional income sources may be requested.
Interest rates may be slightly higher than residential mortgages and
full documentation will be required including cash flow projections.
Our Fees
To cover our administration costs we
charge a brokerage fee of 900 Euros. We do not deduct anything from
the mortgage advance. Our fee is payable on completion of the loan,
direct from the client. All fees relevant to your purchase will be
detailed in our full quotation by request. |