Spanish mortgage deals for Q4 2020: There is a good choice of properties and mortgages from Spanish banks and with more building starts – and restarts of recession troubled sites – from developers for any year in the last decade Spanish property buyers are returning to the market despite the impact of Covid-19. Plots in prime locations are well-priced and 100% mortgages on the building costs are available.
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 3% APR and now fixed interest for 20 years from Hola Bank, the English speaking specialist, property buyers are being tempted to buy a property in Spain once again. Best interest rate for Q4 2020 is 1.9% variable for a 60% loan or 2% for 70% loan. 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.
: : All offers subject to buyer status and availability.
As a result, Brits have missed the start of the 2019 property buying season. For decades they led the way as the Spanish property market returned to business after Christmas and Three Kings public holiday.
Would-be British buyers would browse their favourite Spanish property websites, phone friends and family living on a favourite Costa to check for nearby bargains and make a benchmark shortlist of any villas or apartment that matched their requirements. A quick search for cut-price flights and fly to buy planning begins in earnest…
But, not this year. So far.
They appear to be taking a “rain check”. It looks like they need a short recovery period while Brexit legalities are sorted out and life can return to something like normal again.
They will have noted the new bi-lateral agreement between the UK and Spain safeguarding each countries ex-pats. Free healthcare is unlikely to be on offer if there is a no-deal brexit. And that, at last, the UK government has provided detailed information for Brits currently living in Spain and for the 1,000s more planning to relocate there – or buy a holiday home.
The British Embassy in Madrid has stepped up its information for buyers of Spanish homes and, following a Q&A with ex pats and potential buyers, will post Brexit updates on its website’s excellent property advice section.
There is new information that will be most useful to buy to let investors, most of whom find themselves taxed out of the stalled British property market. They are also facing tougher UK mortgage conditions. Many BTL investors are prepared to invest the proceeds from UK forced disposals into Spanish property. But not before the Brexit cannon smoke has dispersed and they have a clear vision of the new potential.
Demand for Spain’s property bargains has risen quarter on quarter. In the Brexit Years, Scandinavian and Benelux buyers have been at the front of the queue for the best deals – mainly in Costa Blanca and Costa del Sol.
For British buyers, Brexit may yet prove to be just another obstacle on their journey towards Living the Dream in Europe’s favourite holiday destination. In recent years 1 in 4 property purchases in Spain were made by Brit buyers. This was despite crooked town mayors, dodgy builders, greedy bankers, dishonest developers, sales scams and metres of official red tape,
This market share is likely to continue after Brexit. Spain’s unique blend of culture, climate, natural beauty, cuisine, superior transport, beaches and Brit-friendly attitude will remain unrivalled for foreign property buyers. The Brexit blip is unlikely to stop Brits investing their favourite vacation destination.
Out of the EU, maybe. Out of Spain…Vive la vida loca.
Author: Elliott Barnett, international property writer | Image: Brexit: Which way is out of the EU?
Fixed at one third of the original construction cost, the prices are designed to attract international buyers to Torremendo, a “Real Spain” town in Alicante province. It is 20 minutes south of historic Orihuela City and only five minutes longer to the sandy beach holiday resorts of Orihuela Costa. International airports at Alicante and Murcia are 30 minutes’ drive.
Torremendo is a timeless village where already 39% of dwellings are second homes and 18% of residents are ex-pats, mainly German and British. They have been attracted because of the tranquil location that includes large lakes and forests of the Sierra Escalona. They like the fishin’, huntin’ and relaxin’ outdoors ambiance.
International brokers, Walker Property Spain have a good selection of the 2-bed, 2-bath apartments, including penthouses with rooftop solarium, shower and barbeque. Prices from €45,000 to €52,500. Local property professionals say the prices are 70% lower than those intended by the original developers. They equate to €371 per square metre.
The development, Residential Mirador 1, has been built high above the lush Vega Baja plains. Home owners share a gated communal area with swimming pools, an ideal base for outdoor activities in what is expected to become Spain’s latest national nature park.
The area is acclaimed for its wildlife, including rare migrating birds and Spain’s greatest concentration of wild cats.
The Sierra de Escalona is considered one of the most valuable ecological spaces in the region of Valencia. It has had international recognition for the many different species of birds of prey. Among them are buzzards and Northern goshawks as well as over a hundred pairs of eagle owls – one of the biggest communities in the whole of Europe, providing many sightings. There are breeding pairs of Bonelli’s Eagle and Golden Eagle.
Image: New homes at Torremendo | Eagle in flight, Sierra Escalona