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- Options for Tenerife Mortgages
- Our Services
- Mortgage Products
- Euro Mortgages
- Lending Criteria
- Making an Application
- Interest Rates and Repayments
There are two ways in which property buyers can obtain finance to purchase a property abroad.
Some property owners may be able to obtain sufficient funds by releasing equity in their residential property, this may be subject to a professional valuation and will depend on value of the property, the outstanding loan, income, expenditure and the age of the borrower.
The other option is to obtain a mortgage on the property abroad and again this would be dependent on valuation, income and the age of the borrower. Expenditure would also be considered including the ability to repay a second mortgage.
In the case of joint borrowers, information would need to provided for all parties
We would not normally become involved with the first option because you would secure the funds and transfer them to enable the purchase to be completed.
As leading Tenerife Estate Agents, we have dedicated and experienced Mortgage Advisor and can give you all the help you need in securing Tenerife Mortgages. Please contact us to explore mortgage options which best apply to you.
We will handle you mortgage from enquiry, through application and approval and release of funds so that you can concentrate on other things. We will even assist you if there are any problems in the years to follow.
Our experience in the mortgage market enables us to advise you which lender will offer you the best deal for your own situation.
If you are resident in the UK a number of banks and institutions are now offering mortgages on properties abroad, the same would apply to most countries, especially where multi-national institutions are concerned.
For example Halifax set up Banco Halifax Hispania in 1993 to serve the Spanish property market, HSBC selected Solbank, a member of the Banco Sabadell Group to offer mortgages in Spain and Abbey are part of the Banco Sabadell Group in Spain.
The right choice for you may depend on who you already bank with, who your existing mortgage or you own particular circumstances. When you have found your suitable property we can advise you of the best options.
Interest rates have been historically lower in Spain than they are in the UK and some other places outside of the Euro zone.
If you use a UK bank or Building Society your repayments will be in Sterling, conversely in Spain they will be in Euros so exchange rate fluctuation must be considered. This may be important to you have a sterling mortgage and you are letting your property. If you will receiving remuneration in Euros you may be better looking at Euro Mortgages.
See our currency converter for all current exchange rates.
All lenders have published lending criteria and some lenders have what we call comfortable criteria which means they are prepared to be flexible under the right conditions.
Currently most lenders are prepared to lend up 70% of the valuation sum determined by a Professional Valuation Surveyor selected by the lender. Normally the determined valuation and the agreed purchase price are similar but nobody can guarantee that.
In some rare circumstances it may be possible to borrow slightly more but this is unlikely, so we advise, it is better to work on a figure of 60-70%.
In terms of income and expenditure, most lenders work on the following criteria. After you have paid your taxes and repayments of other loans, the additional repayments should not exceed 25-30% of you remaining income, usually calculated on a monthly basis.
If you are a resident you should call us to discuss your circumstances.
Nothing could be worse than finding that you are unable to qualify for the mortgage that you need, especially if you have already found a property.
If you want to check whether you qualify for a mortgage why not contact us with your ideas or queries and then we can guide you. We can send you back a form by fax or email and if you complete it we can obtain basic approval for you.
When you have found a suitable property, subject to deciding upon the best option we can provide you with the necessary forms to complete to make an application.
You will need to provide evidence of you earnings and taxes payable and if you are self employed, copies of your accounts.
If you need to know how much you will be able to borrow it is advisable to contact us either telephone, or if you prefer, email us and we will sent you a pre-qualification questionnaire to complete.
The base interest rate in Spain is called the Euribor rate which is much lower than the UK rate. Generally the interest rate will be 1.5 - 2.0% above the Euribor Rate. Fixed or variable rates may be available. The Euribor rate changes daily, please contact us for current rates. We can help you with calculating monthly repayments based on the sum borrowed, the term of the loan can be affected by you age.
Please consult us for up to date information or additional information.