Mortgages in Spain
Property in Spain Group have been working alongside Martine Newman for the past 2 years. Martine has worked in financial services for over twenty years for finance houses such as Lloyds, Merrill Lynch and Deutsche bank. She took a break to work as an Executive Assistant to the VP of a helicopter air ambulance service in Canada for five years! Currently working for Mortgagesdirectsl.com
Mortgages Direct Business Model
“”Since we established Mortgage Direct in 2006, we have learned a lot about doing business in Spain and adapted our business model accordingly. Our core focus has always been to provide easily-accessible, transparent and quality mortgage advice to international property buyers. Over the years we have developed very strong relationships with the banks, which means that we can now also offer exclusive mortgage conditions not available at any bank branches.
We work as the bridge between internationally property buyers, the mortgage lenders and often also estate agents, as they often speak very different languages and may have very different interests. As the independent party, we guide the property buyer in advance of the property purchase and the mortgage application to save both time and money for all parties. We closely assess the borrower’s profile at the start of the process to avoid barriers later on.
We offer initial mortgage advice and up to two no-obligation mortgage quotes to property buyers without any charges, as we believe every buyer should have free access to quality advice. When the property buyers proceed to formal approval, we charge an administration fee which comes with a money-back guarantee in case the mortgage quoted cannot be achieved. This demonstrates to both the banks and the property buyer that we only submit cases we are certain can be completed. We receive an income from bank commissions once a mortgage is completed; this allows us to keep the fees to property buyers to a minimum.”
Katherine Walkerdine and Kevin Monger business founders
A full range of mortgages in Spain solutions are available through Mortgages Direct
Holiday home mortgages
Holiday home mortgages are available for private non-resident property buyers, who are not Spanish residents.) The maximum borrowing amount is up to 70% of the property purchase price (or valuation if lower)
Construction mortgages
Construction mortgages are for property buyers who wish to build a new house from the ground up or to renovate an existing property. The maximum borrowing amount is generally 50% of the plot cost plus 70% of the cost of the works.
Primary residence mortgages
Primary residence mortgages are for those who will live in their property in Spain as their main residence and pay their income tax here. It’s possible to secure mortgages up to 80% of the property purchase price (when you are a Spanish taxpayer) with rates from Euribor + 0.99% or fixed rates from 1.95%
Investment mortgages
Investment mortgages are for those property buyers planning to rent out their property after purchase. Generally speaking, banks will only offer 50-60% of the property purchase price (or valuation if lower) for these types of mortgages.
Commercial mortgages
Commercial mortgages, including mortgages taken out by companies, are for those who seek to buy property for commercial purposes and might include investment mortgage. Available up to 50% of the property purchase price with rates from Euribor + 2.1%.
Bridging finance
Mortgage Direct can help you arrange Bridging Finance throughout Spain for amounts in excess of €500,000 for loan terms of up to 36 months and up to 65% LTV. Interest rates are available from 0.70% pcm and different sectors are considere
