Small Mortgage in Spain - Question

Discussion in 'Spanish property' started by Nukumai, Sep 28, 2009.

  1. Nukumai

    Nukumai New Member

    My first post (I've been a casual lurker).

    I live in the UK and am considering the purchase of a property in Spain; I'm looking at the main coastal resorts, and (location-wise) my only criteria is that it be close to an airport servicing flights from London.

    Ideally, I'm looking for a 2/3 brm apartment, as I would not have enough time to maintain a standalone house/villa. In fact, I will probably only use the property myself for a couple of weeks each year, and would make it freely available to friends and family outside of this. That is to say...I have no intention of renting it out at all and am not actively looking for tax efficiencies etc.

    In terms of price, I would be targeting something up to EUR 60,000, and would hope to achieve a roof-terrace and use of a communal pool.

    Though I am in a position to pay cash, my bigger project is to purchase a larger property in Paphos; however, it is too early for me to take on that commitment (I am likely to retire there sometime in the future) and, in any event, I feel that Paphos property prices are more likely to ease than to strengthen at present. So, I am looking to take advantage of the Spanish property situation in a modest way in the meantime.

    Question : on the basis that I front up with a deposit of around, say, 40% (EUR 25,000), am I likely to be able to secure mortgage financing with a Spanish bank for the balance at present ?

    It's not a large sum, by any means, but I am reading stories about how ridiculously tight mortgage funding is in Spain at the moment, especially for non-residents.

    Some background...I'm a well-paid finance-sector worker (chartered accountant by profession) and my primary domestic mortgage accounts for less than 20% of net income; no other material debt than what you would expect for a married guy with a couple of kids and an expensive wife...

    Also, I'd expect to be looking at a 10-yr table mortgage (though I'm relatively indifferent to an interest-only arrangement).

    Advice / comments, please?

    Thanks in advance.
  2. advoco

    advoco New Member

    Hi there - I'm a chartered accountant too and used to work in your industry! Now I live in Spain but unfortunately do not work in a bank or the mortgage industry so I can't give you a definitive answer. Spanish banks have tightened up their terms but with the size of deposit you have mentioned and no difficulty proving your income I don't think you'll have a problem getting a mortgage. I have a small one which is very inflexible and unsatisfactory. If I were you I'd borrow the money in the UK.
    Enjoy the forum and your property hunting.
  3. Nukumai

    Nukumai New Member

    advoco - many thanks. Securing the funding in the UK is, as you say, a very viable option; in fact, a personal loan would probably cover it without the need for the ordeal of all of the mortgage documentation that would otherwise be required.

    However, I have some EUR income, and was thinking that matching this against a EUR liability made some sense.

    In any event, it seems that local funding is still tight in Spain.I guess I will stay open-minded and do whatever is easiest when I find the right property.

    Thanks again for the response.
  4. DC

    DC Member

    Send me your details, I will speak to the broker we use who specialises in Spanish mortgages. They work with between 20 to 40 banks.
  5. rowlandsbb

    rowlandsbb New Member

    If you buy one of the properties from CAM Bank, where the discounts are circa 30% off value, then subject to status, they will lend 80% loan to value to non residents

    This connection with CAM Bank has only just been arranged so details will be on the web site shortly
    But in the meantime I can provide details via normal contact
    Prices are from 55.000 €
    May be worth a look or get in touch...for what you want and status a mortgage on one of these properties will not be a problem
  6. Nukumai

    Nukumai New Member

    GG and Brian - many thanks to both of you for the useful information. I am planning a short trip to Spain in the near future to see for myself how the land lies.
  7. rowlandsbb

    rowlandsbb New Member

    Spanish visit

    Let me know when you go and I will be pleased to show you some of the CAM Bank properties and others
  8. Nukumai

    Nukumai New Member

    Thanks for the kind offer, Brian. Out of interest, where in Spain are you based?
  9. rowlandsbb

    rowlandsbb New Member

    My Spain base is Huercal Overa Almeria and my UK base is Macclesfield but the contact have an office near Alicante and in Spain covers everything from North Costa Blanca to Almeria with some in the other Costas
    The CAM Bank range is almost every Costa and Islands
    So when you are there I can meet you and introduce you to the Spanish Team who are always on site...we have an extensive range even more so with the arrangement to sell the CAM Bank properties
  10. Sixgun

    Sixgun New Member

    Hi Rowlandbb

    I spent 7 weeks in Gran Alacant during summer, and now I'm back in Britain I wish I'd spent a bit of time looking at property there, as i like the area.
    do CAM bank have many properties inthat general area? would be most interested in a list from your company, or however best to do it?
  11. rowlandsbb

    rowlandsbb New Member

    Yes they have lots in that area from 55.000 € and all types of properties

    Let me know your budget and type of property you are looking for and I can send you some samples by e-mail

    This will give you a general idea and then you will need to go back to Spain to have a good look

    You will have to contact me via my web site to enable me to e-mail the details to you

  12. rowlandsbb

    rowlandsbb New Member

    duplicate mesage error
  13. leepaul

    leepaul New Member

    Hi Nukumai. I've just read your post and have a 4 bedroom flat in the coastal town of Oliva south of Valencia. Its for sale at about the price you want to pay. Its a very big flat of 125m2 with roof terrace but no pool. please write me if you need more info and photos.
    All the best. Lee.
  14. Nukumai

    Nukumai New Member

    leepaul - thanks for your kind offer. However, I already have a couple of irons in the fire at the moment. Good luck with your sale, though.

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