Finding a mortgage in the UK can be hard enough but when it comes to finding one in other country can be very daunting with so many domestic and overseas providers all vying for your business, the thing to remember is, they need your business as much as you need the mortgage so like you would with a mortgage for a house in the UK look around for the best deals. Time spent now will hopefully save you time and money later over the lifetime of your mortgage.
You can begin your search for the best deals on line which should make the whole process more convenient and efficient. Below we have listed what seem to be the 5 main ways of raising finance.
Complete Spanish Property brings you in this article the 5 basic types of arrangement available for your mortgage:
Depending on the country you are resident in and which country you want to buy in some domestic lenders will offer international mortgages to enable you to buy overseas. Lloyds TSB in the UK offer resident Britons who own a home in the UK a scheme which is specifically for the purchase of property in Spain.
As Spain is largely geared to the foreign property buyer it's often possible to raise finance locally in Spain especially if you approach one of the larger international banks.
It is very important to make doubly sure you understand the local terms and conditions of the loan and the repayment methods as well as checking and comparing the interest rates that are available to you with those from a supplier back in the UK.
Some people have been caught out with what seemed good deals on low start mortgages only to find out that after some many month the monthly repayment suddenly doubles, which is common with Spanish low start mortgages.
If you are already living in Spain and want to buy in Spain or are thinking of buying a house back in the UK for whatever reason, it can be very tricky securing a mortgage.
If you had a strong credit history before you expatriated and you are now in receipt of income to support your mortgage application there are a number of lenders who are interested in attracting this kind of business though. Some of the major high street lenders will change you a premium for the ease of application and the service they offer so it's worth shopping around on the internet for the best deals.
Usually you should be able to borrow up to 85% of the property's value and when it comes to proof of income this can be made up of earned, pension, investment and rental income.
This is of course the simplest and most popular method being used currently for the purchase of holiday homes overseas by many buyers. In the UK especially, where, many people have built up substantial equity in their homes and are now releasing this 'extra money' to purchase property in Spain.
If you consider this method you must accept that the additional sum you add to your mortgage will incur interest, it will have to be repaid over the term or at the end of the term of your mortgage and that the whole loan is secured on your main property.
You might like to consider purchasing property off plan as this can give you the option to pay for the real estate via a series of instalments or stage payments that you can save up to fund during the build period.
After paying the securing deposit your instalment dates and amounts will be written into your purchase contract enabling you to budget accordingly. Clearly this method would particularly suit those with a high level of disposable income.
Once you have determined the most suitable method to suit your requirements and circumstances you can begin your search for a lender if applicable. Consider searching the internet, using forums, expatriate and international property sites, examining lenders sites and you can also listen to personal recommendations from friends, family and colleagues who have already undertaken property purchases in Spain.
The Spanish market-place can be very complex but with the knowledge and experience of the company as well as its associates it can provide a smooth buying process from initial enquiry through to its after-sales care. In Complete Spanish Property we firmly believe each client should be treated exactly like that, as an individual, so each enquiry will have its own personal touch and differing relationship with the company.
Our aim as a company is not only to sell property but to ensure the total buying process is smooth. We always make sure that we communicate clearly with customers at every stage of the process, as well as providing them with a high level of service after completion.
