Spanish Mortgages

Buying a Home In Spain, Confused about the options?

If you are considering Spanish mortgages for purchasing a new home in Spain it can be confusing trying to work out the best way to proceed. As with everything, what is the right thing for one person is not necessarily right for another. To help you consider the various options here are some examples of other people's experiences that you may identify with.

Spanish Mortgages Case history 1...

Mr and Mrs White

A young couple in their 30's the Whites had a substantial mortgage on their UK home, so would be unable to raise any further funds against this property, but with good incomes they were able to afford extra borrowing.

They were keen to buy a second home in Spain with a view to family holidays and a potential letting income. They saw a property for £80,000 and wrer able to fund the initial 50% of the purchase from their savings.

The final 50% was funded through a Spanish mortgage lender using the new Spanish home as collateral. This completed at the same time as they took over the new property so they did not have to make mortagage payments until the building was finished.

Spanish Mortgages Case history 2...

Mr and Mrs Black

Mr and Mrs Black had been watching the Spanish property market for some time and realised that there was a potential for buying these properties as an investment.

With UK interest rates at the lowest for 40 years ther were getting a poor return on their UK stocks and shares, where as properties in Spain on the Costa Blanca had consistently increased by 20% over the previous 2 years.

Their inital plan was to use some of their savings to purchase hoilday home in Spain providing themselves with unlimited holidays in the sun for friends and family whilst also having an accruing asset.

However they decided that as interest rates were so low that they would buy two Spanish properties using Spanish mortgages, one for their own use and one on permanent rental with both of them increasing in value.