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%.
- Resale homes can generate up to 70% LTV and brokers are offering rates for high rated clients from 1.5% fixed for up to 20 years. Interest rate from 1.3% variable up to 30 years. On 500K plus 9% purchase tax.
- New build development, finance depends on the current specific deals from the developer or as above. On new properties 10% VAT.
- Plot to build: client buys plot outright with cash, becomes the promoter and has the selected villa built to turnkey project for the price all included. 21% vat on plot and 10% on the build. Up to 100% finance for building costs is possible.
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.