BBVA offering mortgages to purchase Spanish properties
Banco Bilbao Vizcaya Argentaria (BBVA) is one of the few banks offering mortgages to UK borrowers purchasing properties in the UK and Spain. Please note the minimum mortgage is €100,000.
Impressively, if you are buying a Spanish property, the bank offers mortgages in pounds sterling or Euros. Please check our FAQs at the bottom of the page prior to submitting an enquiry.
BBVA offers four competitively priced early repayment charge-free tracker rates, priced for mortgages above €200,000. Arrangement fees range between 1% and 1.5% of the loan amount, with a maximum fee of £10,000.
Applicants will require a deposit of at least 30% to qualify, and the minimum mortgage amount is €100,000 or its equivalent in Euros.
The maximum mortgage term is 20 years, and this is subject to your credit status and the bank's responsible lending criteria. As interest-only is not available, the mortgage will have to be on a full capital repayment basis.
Aaron Strutt, product director at Trinity Financial, says: “It is unusual for a lender to offer finance to buy properties in Spain, especially as the leading players have pulled out of this market.
“The bank expects clients to be able to afford the monthly repayments for the property and any mortgages or unsecured debts in the UK.”
Buying in the UK
If you are purchasing a property in the UK, the bank is offering two very competitively priced term-tracker mortgages.
The lowest rate is 1.75%, and it tracks the Bank of England base rate plus 1.25%. The overall cost for comparison is 1.90% APRC.
There is a £999 arrangement fee and applicants will require a 35% deposit to qualify. The rate is 0.5% more expensive if you have a deposit between 35% and 15% of the property value.
Both of these mortgages are early repayment charge-free.
BBVA is one of Spain's largest banks, with a global workforce of 138,000 employees in 35 countries. It has 67 million customers across the world.
Call Trinity Financial on 020 7016 0790 for help to secure a mortgage through BBVA or send an enquiry
YOUR SPANISH PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. IF YOUR MORTGAGE IS IN EURO, CHANGES IN THE EXCHANGE RATE MAY INCREASE THE AMOUNTS YOU HAVE TO PAY UNDER YOUR MORTGAGE.
Trinity Financial will need some basic information to find out if you are likely to qualify for a Spanish mortgage.
If you are planning to send us an enquiry, please provide us with the following information:
- An online link to the property (if you have found one to purchase) and Nota Simple if you have one (this is the land registry document).
- The size of your deposit and where the funds came from (this is for money laundering purposes).
- The age of the applicant(s). The maximum age at the end of the term is normally 75 based on the main income earner.
- What is the primary use of the property? A second a residence with letting is acceptable.
- What you do for a job and how much you earn. How long have you been in the job or sector? Do you recieve a variable income? If you or the joint application have changed careers, the lender will want to know why. If you are self-employed, we will need to know the last three tax returns and last three years company accounts.
- If you have any credit cards, loans, existing mortgages, the lender will need to know the balances and monthly repayments to check affordability. This includes the property value and remaining terms.
- How much do you want to borrow? The mortgage will be in euros, but you have the right to change this into pounds. The direct debit can come out of a UK bank account.
Once we have confirmed you are eligible for a Spanish mortgage and it is agreed in principle, we will need to submit an application.
The lender is like to ask for the following information:
*Completed application form
*Copies of passport(s)
*NIEs number
*Recent payslips for employed applicants
*For the self-employed or limited company directors, we will need the last three years complete personal tax returns, last three years company tax returns and last three years business accounts
*12 months bank statements where the client receives their pay, dividends, any other incomes received
*12 months statements where the client hold the personal contribution funds or deposit
*Credit report showing all existing charges
*Property nota (comprehensive property report)
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