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08 Mar 2008 12:00 AM by dream girl Star rating. 23 forum posts Send private message

Am buying on la torre am a bit confused with mortgages would i be better taking the money i need on my english mortgage or taking out a spanish mortgage. The interest rate doesnt seem that much difference at the moment, Any advice would be appreciated.


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08 Mar 2008 6:43 PM by 1098 Star rating in Jardin 9 & Cambs. 147 forum posts Send private message

You need to consider the mortgage interest rates versus the mortgage set up costs, also the reduction in CGT and Inheritence tax in Spain if you have a Spanish registered mortgage.  You will only pay tax on the actual amount owned.  (sale price minus mortgage amount).

You will also pay less tax on your 0.2% wealth tax each year as the same principle applies.

It would be easier to control in the UK if that's where you live, however if you take a UK mortgage you would need to transfer a large amount of money to Spain and the Pound/Euro exchange rate could effect the amount you need.  Look at a company such as www.currenciesdirect.com 

I would always ask any Spanish mortgage lender if you can make capital payments off your mortgage at any time without penalty.  Then you could transfer money from the UK if the exchange rate improves.

Hope this makes sense.




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09 Mar 2008 10:05 AM by sharonw Star rating in Coin, Malaga. 281 forum posts Send private message

sharonw´s avatar

Totally agree with post below - if it helps, for set up fees, taxes, stamp duty etc. you should budget for approx 13% on top of  purchase price.   Dependant on your circumstances, there are some good products available that allow you to overpay without penalty.

 



_______________________

Regards

Sharon

sharon@tmasspain.com

 www.themortgageservicegroup.com

 



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