Q: which lenders do you use for mortgages?
A: we have access to a wide range of lenders for traditional Spanish and UK mortgages in the local currency. Different lenders will have a different lending criteria at various rates, and this will depend on whether you're seeking a variable, fixed rate or tracker mortgage above the Euribor rate for Spanish mortgages and the UK base rate for UK loans.
Q: do I have to have a valuation done?
A: Yes, Spanish banks will insist on this. This is provided by a Tasacion and will cost anything upwards of 275 Euros plus iva. UK lenders will also require a valuation and you can expect to pay upwards of 275 GBP.
Q: how long does an application take to complete?
A: mortgage applications generally take 3-4 weeks to approve (excluding vacations).
Q: What does a mortgage cost to obtain a Spanish mortgage?
A: the following is an approximate guide but your own lawyer will be able to advise you further:
a) Bank Arrangement Fee - Often 1% of the mortgage amount.
b) Stamp Duty - Based on mortgage liability and usually around 1.8% of the loan.
c) Notary Public Fees
d) Property Registration fees - Land Registry
Multi-currency mortgages
Q: why are the multi-currency rates so low - what's the catch?
A: There is absolutely no catch! multi-currency mortgages are determined by market forces and interest rates and, as in the UK and Euroland are relative to the base rate or Euribor. This is why rates vary between 3.5 and 7%. Our Japanese Yen product at 2.01% earns the ultimate lender a very generous return of 2% over the current Japan Bank base rate.
Q: I was informed that that the balance (and/or the monthly payments) of my multi-currency mortgage could increase if there was weakening of currency exchange?
A: This is correct, exchange rates may vary. The amount on your mortgage could go up or down according to currency fluctuations. For example, a 300,000 Euro loan could increase by say 15% to 345,000 Euros if exchange rates went against you. Likewise, if exchange rates went in your favour by 15% the loan would reduce to 255,000 Euros and could be paid off before the term of the loan.