Looking for a Spanish Mortgage

It is true that we see a lot of different rates given. Now its even possible for non residents to have normal conditions regarding a mortgage.

A mortgage of Euribor + 0.6 could be an option or a swiss franc mortgage. Advantage is the lower interest rates. (almost 1,5% lower than a euro mortgage).

** EDITED ** Commercial post removed

Hi DonaPepa

See you're from Durham, I was born up that way. Our place in Spain is a stone's throw from you.

Regarding a mortgage we have Patrick, posting in EOS as "Smiley". Don't be put off by his avatar as I THINK he's harmless.  He'll advise you. Many on EOS have used his services.

Here are his details.

Smiley - patrick@marbellamortgages.com

               www.marbellamortgages.com

Our mortgage that was agreed this week is Euribor +0.5% for the first 6 months rising to Euribor +1.25% after 6 months. It is reviewed 6 monthly and is interest only for 10 years and no redemption penalties after 5 years. A good mortgage, BUT......... It looks as though the valuations come in a bit on the low side .

Mark

Dear Viola Holt thank you for the one post that you have made and a worthy and valuable contribution to the site I am sure. If you are going to suggest someone taking a swiss franc mortgage perhaps you would care to explain how they are going to manage the exchange rate risk (which can be HUGE - I used to be an interbank currency broker in a former life so I should know) when the security is in a Euro based currency and their income is in Sterling. Perhaps they would be better taking a Japanese Yen mortgage as current rates are even lower than the Swiss Franc.

During the late eighties and early nineties Swiss Franc mortgages were being touted throughout the UK as rates were about 5% lower than sterling rates - the Franc was then trading at roughly 2.5% and Sterling at between 6 and 9%. Many many mortgage borrowers were fooled into following an extremely hazardous procedure and consequently lost a huge amount of money and were trying to arrange forward foreign exchange contracts in a market where they had little or in most cases NO experience whatsoever - there was a catastrophe and as a result a lot of people found themselves in mortgage arrears and worse still in some cases their properties were repossessed. It caused such troubles in the UK that under FSA regulations in the UK no lender is now allowed to offer such risky mortgages and it is deemed extremely poor advice to even suggest them - of course we have to remember that Spain is not a regulated market where mortgages are concerned and thus there is no requirement for broker or lender to act in an ethos of transparency or to offer most appropriate advice according to client circumstances.

Kind regards