Spanish mortgage deals for Q1 2018: There is already a good choice of properties and mortgages from Spanish banks and, from this year, more building starts from local developers expected for any year since 2008, the outset of the recession.
Best buys – New apartments and villas from leading banks who have taken charge of developments under construction where developer loans are in default. Brand-new, some with years of construction guarantees, these homes are excellent value with peak to present discounts around 35%.
With mortgage deals from the vendor banks around 2% APR and now fixed interest offers for 20 years from Hola Bank, the English speaking specialist, property buyers are being tempted to buy in record numbers. Walkerspain.com buyers can be pre-qualified for their Hola Bank mortgage as part of a Purchase Ready service that smooths the way to a successful purchase and the most suitable mortgage.
Offers – Spanish banks want the properties off their books and will listen to realistic offers. These are formally submitted to special committees that meet weekly and will generally provide an answer with two weeks. However, as the selected property remains on the market, there is the chance it may sell directly off the website or through a higher submitted offer.
Legal – All bank controlled property is fully legal and as such qualifies for generous mortgages as shown here. However, we advice all buyers to hire their own independent Spanish solicitor to check all paperwork, undertake conveyancing and registration and assist with utility provision etc. We can provide firms who have assisted previous buyers successfully.
Endeudamiento/DTI – This is the debt-to-income ratio, and is the percentage of your net income which your total mortgage and loan payments will represent. For example, if your net income is 3000 Euros per month, you already pay 750 Euros per month for your existing mortgage, and the mortgage applied for will have repayments of 250 Euros per month, your Endeudamiento/DTI will be (250+750)/3000 = 33%. NB – if you are renting out a property longterm, some banks may also include part of your rental income in this calculation.