For expats who have been in Spain for a relatively short amount of time and do not have the necessary credit or work history, it can be very difficult to get a mortgage.
www.thespanishmortgagelender.com claims to be able to arrange a mortgage with no need for documents or proof of income. It is likely to be a higher interest rate than a regular mortgage and you will need to pay them an arrangement fee which I am usually against. However, if you have exhausted all other avenues with no success, it may be worth investigating.
BEWARE: Do not overstretch yourself. If you can not keep up with the payments, not only will you risk losing the house, you will also damage your credit rating.
www.thespanishmortgagelender.com
Showing posts with label mortgages. Show all posts
Showing posts with label mortgages. Show all posts
Bankinter.com is offering the chance to change your mortgage with no questions asked - no need to supply payslips, justify your income or provide 2 years tax declarations.
1. Amount to ´subrogar´ (when they take on your current mortgage without having to go through the registration process at the notary) is less than €300,000 and is no more than 80% of the valuation amount.
2. You have had your current mortgage loan for at least two years
3. Mortgage will be for no more than 30 years
4. You can show proof that you have kept up to date with all your mortage payments
5. The mortgage is on your principal property
6. No bad credit history
If the mortgage amount is less than €240,000 and you fulfill the criteria above you do not even need a valuation as long as you can provide a copy of the valuation that was carried out by your current bank.
It is important to check the fine print and the conditions of the mortages - ask an indpendent mortgage broker (who does not charge you a fee!) to explain them to you.
Remortgaging in Spain is a costly affair as not only will you have to pay any cancellation fees to your bank if applicable, you also have to go through the whole notary and registration process again. Depending on the amount of your mortgage this can add thousands to the process.
The good news is that there is talk of Spain drastically reducing the cost of remortgaging. I have read in different articles that notary and registration charges may be reduced by up to 80% and banks will be limited to charging 0.5% for cancellation charges (many currently charge 1%).
If you are thinking of remortgaging it is worth waiting until 2008 if you can to take advantage of these changes and save yourself some money!
Talk to your gestoria, accountant or lawyer and ask them exactly when the law will be in force so you can be armed with the information when you talk to the banks or mortgage companies.
Why am I not telling you when it comes into force? Well in theory it should be January - but get it from the horses mouth and ensure that there are no ´special´regulations covering the region you live in!
Europa Mortgages is a broker based on the Costa del Sol with one of the widest range of mortgages available including multi-currency mortgages.
Most importantly Chris does not charge a fee for arranging the mortgage which the majority of brokers will do. Fees vary depending on who you use but can certainly be as much as €1000 which considering the cost of mortgaging or re-mortgaging in Spain is yet another cost you can afford to be without.
Visit Europa Mortgages
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