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Mortgages in Tenerife
For buyers wishing to fund their purchasers with a mortgage we have access to all the Spanish mortgage lenders in Tenerife, Spain, Gibraltar and the UK.
We can also arrange equity release, unsecured and secured loans in the UK for those who require additional funds as well as being able to offer advice and consolidation and reduction of monthly debt payments in order to meet with the lenders criteria here.
We are completely independent and are part of the largest non-resident mortgage network in Spain having completed on over 500 million Euros of mortgage business in Spain.
Working with more than 30 different lenders with more than 100 mortgage products ensures we do not submit your application to a bank at random and waste your time. We will fully assess your application first and only apply to the banks we feel you have absolutely the best chances of being accepted for.
Where there are multiple options available to you we will apply to at least the two best options so far as set up costs and mortgage rates are concerned.
The sooner we can have a mortgage offer in place the stronger a position we can put you in to begin negotiating your purchase.
Mortgage Costs and Documentation
The first things you need to know when applying for a mortgage are the costs involved in the purchase and the documentation you will require.
It is prudent to set aside between 10% and 12% of the purchase price in order to cover all the legal fees and taxes. So, on a purchase of 150,000€, you should have between 15,000€ and 18,000€ to cover the additional costs.
Documentation you will be asked for is as follows:
* Latest 3 months bank statements
* Latest 3 pay statements
* Latest P60´s
* Copies of your passports
* Your credit reports from either Experian or Equifax
* You may also be asked for a bank reference and an employer’s reference. When this is the case we will let you know.
Additionally, self employed applicants will also need to submit their latest self assessment tax return and may be asked for an accountant’s reference.
Mortgage rates in Tenerife and Spain
Mortgage rates here vary dramatically and the difference between good mortgage advice and bad mortgage advice can run into tens of thousands of Euros.
It is much more expensive to change your mortgage lender here in Spain so getting the right product first time is essential.
Some banks utilise different methods of calculating your rate. If you go to a bank yourself, please ensure you understand exactly how your interest rate is calculated. We have a steady stream of enquiries from owners who have taken out mortgages direct with lenders our allowed an estate agent or lawyer to arrange their mortgage only to find themselves on a much higher rate than they were initially told.
Some of our best products currently available are:
* 70% of purchase price
* up to 30 years capital and repayment
* 65% of purchase price
* Up to 5 years fixed with excellent standard variable rates after the fixed term
* 60% of purchase price
* 5 years interest only followed by 20 years capital and repayment
Mortgages must be paid off by the time the clients reach the age of 75. Equity release is available to purchase a second property in Spain – very useful if you already own a property here.
Mortgage products are now slowly being re-introduced to the market place as the credit crunch eases. We have a team of staff who are in constant touch with all of the lenders so we can keep our product range completely up to date meaning you get the best possible options for your purchase.
Before you spend several months searching for a property you may wish to have us assess your chances of obtaining the mortgage amount you need.
To this simply contact us or speak to Stuart or Michelle and we can arrange a time to go through an application in their office or over the phone.
From this we can give you our expert opinion on your current situation and how easy or difficult it will be for you to qualify for a Spanish mortgage.
This service is completely free and well worth the 30 minutes or so that it will take.
Additionally we can also apply to the lenders that best fit your situation and obtain a Decision in Principle giving you a good idea of how much you are able to borrow. Again, this service will cost you nothing.
For more information contact Stuart or Michelle at Propertiesareus.com