HELP Can anyone advise on spanish mortgages

We have recently received mortgage details from our agents ambasun which were vastly different to when we first signed up for our villa. Details seemed to have changed such as term length and repayment/interest only detailing.  Does anyone know of any really good mortgage deals at the moment for Spain?  What is happening with all these completions, I have read that the march villas are not yet complete so goodness knows when ours will be it was due to be finished in May.

Hope everyone is ok we have not visited the eos site for a while!

Cheers Sarah and Brent

Hi Sarah and Brent,

Regarding mortgages, there are a variety of options from different Banks and which one you go for  will depend on your circumstances both now and in the future.  If you are planning to move over for good and plan on selling your own property (assuming you have one) for example then you might want to take out a mortgage with a low early redemption fee (so you can use the sale of your own property to pay off your Spanish mortgage).  If it's just a holiday home then you might consider a UK loan (or buy to let interest only if you can).

Interest rates are also likely to change between now and when the properties will be ready so you can't rely on today's interest rates.  Also, it is normal for none residents to only get between 70 and 80% mortgage.  However this can be based on 80% of the Banks valuation (not what you owe San Jose).  Also, set up and arrangement fees vary from Bank to Bank.  €4000 on €100000 is an example from Bancaja of total fees and charges (interest rates are at 5% at the moment.  The term length will also vary between bank to bank, some will go upto 32 years.

I would be interested in what Ambasun have said as I know a few buyers have gone through them. 

As  for completion dates the first phases of building won't be released until Dec 2007 at the earliest.  So for those with a March 07 contract a 9 Month delay and May 07 contracts a 6 month delay.

If its of any value I have a mortgage broker in Valencia who I keep in touch with from time to time.  She's very helpful and might be able to guide you when the time comes.  You can PM me for her email address if you like, anyone else for that matter.

Kind regards,

Steve.

Sarah & Brent

If you need any further advice, we have a business partnership with a Financial Investment Company in London who can assist.

If you PM I'll send you over their details.

Darren & Michelle

Steve

Ambasun do not actually give the mortgage

it is done through Bancaja

although they do have a mortgage advisor called George

GAL

Thanks Linda,

I thought as much, thats why I was interested in what information they (Ambasun) had given.

I think you do need to shop around as some of the setup fees amount to as much as one years interest, but I suspect they will all be similar.  Although I have been informed that there are a couple of banks (spanish) who don't have any early redemption fee (useful for those developing property and selling on)..  But I think I'd have to pay my broker to find out which ones.  

Regards,

Steve.

www.spanishvillacare.com

Steve and All who are interested

With Bancaja  I have investigated it for myself the early redemption figure is 1% of the amount borrowed I do know this is fact

I dont suppose that is bad if you borrow a small amount but if you are getting a full mortgage for half the property it could be a hefty sum if you borrow say 100000 Euros

The set up fee is 1.5% plus valuation fee of 300 Euros

Hope this is helpful I am no mortgage expert

GAL