Time to arrange a Spanish Mortgage


Spanish Banks are approving new holiday home loan

Delaying buying due to restrictions on travel and local lockdowns in Spain?  You can still arrange a Spanish Mortgage in advance. Despite depressed market for non resident buyers and Spanish mortgage applications Spanish Banks continue to approve new cases.

Sellers of Spanish property are very open to offers at the moment. The sale and financing of more luxurious homes is holding up quite well. Mainly due to a move away from apartment living toward more isolated holiday homes.

Now could be a good time to apply for a Mortgage in Spain.

Non Resident buyers in Spain need financing

British applicants and buyers are thin on the ground. Suffering from a double whammy of Brexit concerns and COVID. Therefore giving lenders risk departments some issues, when looking at approvals. However for the right applicants the market remains open.

Nationalities within Europe who are able to travel, view property and remain part of Europe will still find lenders in Spain. Banks are keen to look at mortgage applications for the purchase of a holiday home.

This includes Dutch, Scandinavian and German mortgage in Spain clients. who at present have been less affected by the Pandemic. Due to their own countries more relaxed approach. Whether this approach will be able to maintained in the short to medium term remains to be seen.

Why arrange Spanish finance now

For many people Spain remains the favoured place to own a holiday home. Having good communications, extensive flights and climate favoured by Northern Europeans. The idea of sun sea and sangria, in the open air, will be even more appealing than before. Since months of staring at their own four walls. Living through a hard winter. Respite is needed.

Spain are dedicated to getting near herd immunity before opening back up. However pressure from their tourist industry and the level it contributes to GDP may be a deciding factor in how long restrictions go on.

Whilst 2021 may not seem the best year to make large financial decisions. Or to arrange a Spanish Mortgage and the level of uncertainty will put some people off, many have taken the view that COVID if nothing else has proved there is never a right time and if you plan to do something its maybe just better to get on and do it.

To keep in tact as much of your savings as you can. Even if you don’t need a mortgage in Spain. May feel a more comfortable option than utilising all your own cash. Interest rates are at all time lows and set to remain that way for foreseeable future.  Therefore taking a loan, now may be the most sensible way forward.

This will be true even for the wealthy looking at higher end property. From the Spanish Banks point of view they will view these applications favourably. Seeing the applicant as the most stable in current environment.

Use a qualified and regulated Spanish Mortgage Broker to arrange a Spanish Mortgage

Obtaining a pre- approval and getting help to arrange a Spanish Mortgage. With lenders cautious about the future and what it may hold. Presentation of the application from skilled individuals is crucial. When looking for loan approvals.

Even if there is no way currently of travelling to view property, much preparation can be done during in advance. Ensure as soon as everything opens back up and travel becomes easier buyers are fully prepared. Ready to complete, and making the most of the requirement of sellers to sell. Also in a position to negotiate hard on price.

Construction loans in Spain

One area that is becoming more popular is the buying of land with a view to construction at a later date. Before committing to this it is wise to seek mortgage advice from a regulated broker. What funding possibilities there are in Spain for self build construction mortgages .Also the limitations that may apply to be sure this will meet future needs.

Off plan financing has its risks

Off plan purchases should also be viewed with caution. Possibly of all times now is not the time to consider a new build that is not already built. Given buyers have no control over start of build and completion. No-one knows what their personal situation may look like when completion is ready. All off plans require staged payments during construction. These are potentially lost if you cant make the final payment. No Spanish Bank will give an agreed approval now that is valid for time it takes to construct.

Buying and financing Country Property in Spain

Finally country properties are becoming more and more popular with potential buyers. Those  wishing to take advantage of everything Spain has to offer. However with the security of a more isolated way of living.

Property on Rustica land is different to that on urban land. Mortgages in Spain are available at lower loan to values. In addition subject to certain specifications, and the type of country property being bought.

 Spanish loans pre-approvals

Understand the lending market in Spain. How it might meet your needs. Have clear view of your budget. Be prepared for a purchase. Gain an underwritten loan approval in Spain. Whilst it may need some limited updating nearer the time. A pre-approval with no cost. Therefore only your time for gathering of the documents for a Spanish Mortgage application .Time being something most people have in abundance at present.

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