Pre-construction, off-plan vacation homes and homes worldwide

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CU-AGAIN

Pre- construction and off-plan properties and investments worldwide - Vacation homes, luxury villas, golf homes and waterfront condos, apartments and holiday homes

CU-AGAIN

Costa Del Sol Mortgage Companies

Main lenders:
The main Spanish banks  and Building Societies will offer mortgages for properties purchased on the Coast or inland on rural properties (dependant on the all of the paperwork for the property being in order). Properties bought off-plan can also be mortgaged at completion, with many developers pre-arranging "Guaranteed mortgage facilities"  - which remain subject to status of the end purchaser

Mortgage costs:

• Typical arrangement fees will be between 1% and 1.5% of the loan value.

• The valuation (Tasacion) fee will be approximately Euros 500 depending on the property value.

• There are also Notary costs, taxes, property registration and legal fees of the lender.

• For easy calculations the above costs normally allow 10% as this cost must be considered when purchasing property in Spain.

The maximum amount you can borrow will also depend on your income. In general the rule of thumb is that you will be advanced up to 3 times your gross annual income.

Currency of mortgage:
Mortgages are available in most major currencies. We strongly advise however, that you set up your mortgage in EUROS. This safeguards your risk of exposure to currency fluctuations. Interest rates:
Interest rates for mortgages in Euro are based on EURIBOR (Euro Inter Bank Offered Rate). Lenders will normally charge EURIBOR + 1.25% but individual circumstances will determine the exact interest rate, which could be higher or lower.
It is common to find that some lenders offer a lower "Start up" interest rate of 3.75% for the first year then go up to EURIBOR + 1.25% from year 2 onwards.

It is well worth shopping around for the rates that suit your needs best

Maximum repayment term:
In general, the maximum repayment term is 15years, however 25 years can also be arranged. This will be dependent on the age of the borrower. The eldest partner must not go beyond his 70th birthday by the end of the term of the mortgage. This means that for a couple, where the eldest partner is currently 55 years old, the maximum repayment term on offer would be 15 years.

Documents required:
The documentation required will vary from one lender to the next. As a general guideline we have listed most of the paperwork you are likely to need, it is a good idea to prepare much of these as soon as possible.

Employed - you will need to produce:

• Last 3 wage /salary slips.

• Last income tax declaration (P60 in the UK) or evidence of latest annual tax assessment (if you live in a tax-free environment then this is not applicable).

• Copies of current bank statements (last 6 months).

• Bank reference letter.

• Letter from your employer confirming date of employment and proof of income.

• Copy of passport / residence permit (residencia) if you are resident.
  
  Self-employed - you will need to produce:

• Latest income tax declaration (where applicable).

• Copies of the accounts for the last 2 / 3 years.

• Chartered Accountants Company report, confirming your annual personal drawings from the company.

Wherever you are and wherever you want to be you will find us at CU-AGAIN