Finance / mortgage for a Spanish property
Financing of Spanish property on the Costa del Sol is a field that is constantly changing and for that reason it is recommended that you obtain several offers prior to purchasing a home. Your lawyer and Sundream Estate will be pleased to assist in this respect. For more information legal advice to buy Spanish property.
The conditions for an apartments in Marbella or Marbella villas
The conditions at the beginning of 2007 for a property in Marbella area and Costa del Sol are the following. For re-sale properties in Marbella: Residents may borrow up to 80 - 90 % of the bank’s valuation; non-residents may borrow up to approximately 60 - 70% of the bank valuation. The bank’s valuation is normally a little higher than the actual market price. The term for mortgage loans is between 10 and 25 years depending on the age of the borrower at the time of establishing the loan. When it is a new development most developers arrange the finance for their buyers at 70 -80 % with the same terms as a re-sale. For more information Terms of purchase for buying a Spanish property.
What interest rates will I pay?
There are no building societies as such. The banks offer the mortgage loans. Spanish as well as foreign banks operate in the market. The interest is floating, in the summer 2007 was at the approximate rate of 4.40 – 4.60 % per annum and the set-up costs are approximately 1.0 % for a Marbella apartment or a Marbella villas. The interest rates for mortgages in euros are based on the Euro Interbank Offerad Rate, (EURIBOR) The banks interest in generally Euribor + 0.75%. Sundream Estate has good contact and long relations with several important banks in Marbella which know very well the market for Marbella properties and they can offer you a good mortgage with one of the best interest rates down to less than 5%.
How long does it take to get a mortgage?
A mortgage for a Spanish property, usually takes two to three weeks, it is not unusual to take 6 to 8 weeks – size is important, smaller percentage or purchase price loans are handled locally, larger loans or high percentage lending usually has to be countersigned at the banks head office which can add two weeks to the transaction. When you have found a Marbella property or a Spanish property, it will take about 6-10 weeks to complete the transaction including contract, lawyer, mortgage and notary.