Buying property in Spain? - then read Trinity Financial’s special finance Q&A with UCI mortgages

A. Absolutely! British buyers are still our main customers, among a growing mix of other nationalities.

Q. What is happening at present in the Spanish property market?

A. It seems to be in good shape. We have seen a steady increase in demand year-on- year.

Q. What types of properties are popular at present?

A. Buyers are still able to choose properties that are just right for them. This includes secondhand/new-build flats and houses in the Alicante and Malaga regions. Also, high-end chalets in the Balearics. We have been financing self-build properties, plus we also offer a mortgage product providing extra funding for property refurbishment within the purchase mortgage.

Q. How have Spanish mortgage rates changed over the last six months?

A. Rates have risen sharply, but they are still affordable when compared with the last ten years.

Q. What is happening to the EURIBOR interest rate?

A. The EURIBOR has gone from its historic low of -0.505 in February 2021 to +0.992 now.

Q. Has Brexit reduced demand from British people wanting to live in Spain - and how are the new European Commission rules affecting British buyers?

A. Brexit has had less impact than feared, with demand from British buyers reducing only slightly. One quirk is that some British buyers of rustic homes, which are near military zones, have had to apply for special military clearance to purchase their properties!

Q. What is the typical loan size UCI arranges and how much deposit does a buyer now need? 

A. We arrange mortgages from €100k up to €2m. for Spanish purchases. The maximum we are able to lend for a purchase by a non-resident is 70%. So, the buyer must provide at least 30% plus costs (around 8% - 14%). These costs mainly depend on regional taxes and whether a new-build or secondhand property is being bought.

Q. How have you helped clients to buy Spanish properties recently. Did any have particularly complex financial situations?

A. Most of our business is helping customers buy holiday homes in Spain. Many had complex financial situations. In fact, we specialise in finding solutions in these cases. We also have been helping customers with their post-finance needs following a purchase. This includes releasing equity and refinancing bridging loans. 

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.

David James Naylor is a Mortgage Consultant at UCI. His email is david.james@redext.uci.com mobile/whatsapp +34 693 460 518 - please mention this article.