- Find out how much you are
eligible to borrow by completing our quotation request form
- Instruct Baydonhill
International Mortgages to obtain an ‘Agreement
in Principle ’ on your behalf
- Go to Spain and find a
suitable property
- While in Spain, sign a sales
agreement (Contrato
de Compraventa ) & transfer the deposit with Baydonhill
Foreign Exchange to secure the property
- Submit a copy of the signed
sales agreement to the lender
- Lender instructs valuation
- Lender issues mortgage offer
- Arrange buildings insurance.
This can be provided by Baydonhill Insurance division
- Transfer balance with
Baydonhill's currency division
- Arrange monthly mortgage
payments with Baydonhill International Payment Plan
Mortgages are now available in
either Sterling or Euros and will be secured on your Spanish
property. The majority of mortgages are full status and proof of
income and outgoings will be required, however self certification
mortgages are now available in certain circumstances. Please
contact us for further information.
The maximum loan to value available
is 80% of the value of the property and some lenders will include
fees. Our minimum loan amount is €75,000.
Spanish lenders assess eligibility on the applicant's capacity to
repay the loan. As a guideline, your existing monthly outgoings
and the repayment on your Spanish mortgage should not exceed 35%
of your net monthly income. A percentage of rental and investment
income can also be considered. Mortgage, rent, personal loans,
credit card payments and maintenance commitments are considered as
outgoings. Sterling mortgages secured on Spanish property are
calculated using income multiples.
Mortgages can be obtained for the
purchase of off-plan, new or existing properties and properties on
Leaseback schemes. Spanish lenders will consider
applications in the name of an English or Spanish Company. This
is not widely available and will be at the lender’s discretion.
For construction loans, plans must
be provided at the time of application. Funds will be released by
the lender directly to your builder in accordance with the plans
and following the bank’s valuation to ensure the agreed stage has
been reached.
Capital raising is
available on your property in Spain and the amount you can borrow
will be determined by a valuation arranged by the lender.
Remortgaging is available. We
recommend that you check with your existing lender if any
penalties will be payable for cancelling your existing
mortgage. We are now able to offer a new product where the lender
will cover the Notary’s fees and pay up to 0.5% towards any early
redemption penalty charged by existing mortgage provider.
Bridging finance is
available on your UK property to purchase a Spanish property.
A variety of products are available
ranging from interest-only to repayment mortgages on a variable or
fixed-rate basis or a combination of both. Terms can be from 5 to
40 years. However, loans must be repaid by 80 years of age. Many
of our products do not have any early redemption penalties.
An ‘Agreement
in Principle ’ can be obtained from a lender once all the
requested documentation has been submitted. This takes
approximately 5 working days. A minimum of 6 weeks should be
allowed from application to completion.
Life assurance is strongly
recommended but not obligatory.
Buildings insurance is mandatory
and needs be in place for completion. Most lenders offer their
own buildings insurance and if their provider is not used, they
will require proof that the policy has been assigned to them.
Baydonhill Insurance can provide you with a quote for this.
All lenders will require you to
have a Spanish account, many may insist you open an account with
them.
Please be aware that missing a
monthly mortgage payment may have serious consequences and we
therefore strongly advise participation in our overseas payment
plan. This service gives you peace of mind in the knowledge that
your Spanish mortgage repayments will be met automatically each
month.
Bank’s arrangement fee – typically
this is 1% of the loan amount and will be deducted from the loan.
Valuations – these are required by all lenders. The cost varies
from lender to lender and is dependant upon the size of the
property. Please refer to your personalized quotation for an
estimate.
Notary Fees – these are fixed by law and are based on a sliding
scale. If you take out a Spanish mortgage, a further cost will be
passed on to you by your Notary for registering the charge of the
lender with the land registry.
Baydonhill charges a non-refundable application fee of £200. A
further fee may be payable on completion of the mortgage. Please
refer to your personalized quotation for confirmation.
|
