FACTS: Spanish mortgages and private equity
Would you like to invest in property? You will definitely need to know more about the Spanish mortgages. After hearing about different percentages on private equity needed to get a mortgage, we decided to simply ask a financial specialist.
We asked 3 questions about the amount of private equity needed to buy a house. Patrick Kruger, a Dutch native speaker who lives in Valencia and has been active in the financial world since 1990. He is partner at www.mortgagedirectsl.com and owner of www.verzekerdinspanje.nl (for the Dutch) or www.insuredinspain.com (for the English and better known as CASER insurance for expats). Patrick’s companies are specialized in Spanish mortgages and he facilitates non-Spanish speaking clients in their quest for good solid advice and a great deal. Educate yourself and safe money on your mortgage!
How much private equity would you need to close on a mortgage and finance the property you would like to buy? We have heard 40% and 60% and even 70%?
As a non-resident you can finance up to a maximum of 70% of the value of the property. If you are a resident then this percentage is 80%.
The amount of private equity you need to put forward also depends on the property at hand.
Is there a way to avoid needing private equity? We have heard that banks sometimes seize entire apartment blocks and sell it on the market with a 100% covering mortgage? Is this fact or fiction?
Yes this is true. There are indeed banks who offer houses with a mortgage, which enables clients to finance 100% of the value of the property. However rarely the properties offered with this 100% financing are the ones you are looking for. They are not the best properties as they already are off the market.
Any tips for people who are looking to buy?
Never ever go to the bank yourself for a mortgage. You will never have the deal we can offer you. The interest you will get offered can be up to 2% higher. As we arrange so many mortgages with the banks, we get better, exclusive deals.
The lowest rate we offer to our clients at this moment is Euribor + 1,5%. The maximum age for pay back your mortgage is 75 years.
Educate yourself before entering into mortgage contract. Make sure you know all about this. Of course, my company handles all for you from A – Z, nevertheless educate yourself.
Would you like to know more about the lowest rate of annual Euribor + 1,5% Contact us!