500,000 Euro Spanish mortgage for client buying second home in Spain
Trinity Financial recently arranged a 500,000 Euro mortgage for a client and his partner purchasing a second home in Spain.
They were buying a fantastic property with a sea view and required a mortgage to top up their 250,000 Euro deposit.
Our client had contacted another broker to secure a mortgage and had terms in place, but he wanted another option because it had to be taken with life insurance.
Solution
Trinity’s broker arranged a competitively priced 2.4% five-year fixed-rate mortgage without the requirement for life insurance.
The lender was happy with the applicant's joint income as they comfortably met the affordability requirements and was happy with the loan-to-value.
In many cases, buyers of cheaper Spanish properties are stretching themselves financially to access a mortgage so applications are declined.
As the mortgage was over 250,000 Euros the arrangement fee was lowered from 1% of the loan amount to 0.5%. The monthly repayments were set to come from their UK bank account.
The Numero Identidad Extrajero was also in place as required by foreign buyers to purchase or sell a property in Spain.
Case details
Property Type: Three-bedroom hillside flat
Value: 750,000 Euro
Mortgage: 500,000 Euro
Rate: 2.04% five-year fix
Reversion rate: Euribor plus 1.59%, currently 1.79%.
Lender’s arrangement fee: £2,400
Mortgage term: 20 years
Loan-to-value: 25%
Early repayment charge: For five-years.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.
Call Trinity Financial on 020 7016 0790 to secure a Spanish property mortgage
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