An Independent Mortgage Broker providing a mortgage arrangement service to the English speaking resident or non-resident of Spain, Portugal and UK  

Our services  include Spanish , Portuguese and Uk Mortgages. We have a special product for those Over 60's.

Mortgage Matters…… will be happy to give initial advice free of charge. Please telephone ( Tel. (0034) 952 960 392 Mobile (Spain) 626 243 949 Mobile (UK) 0792 863 7281 ) or e-mail ( mortgagematters@telefonica.net ) for a no obligation quotation and advice to suit your personal circumstances.

FAQ

How Much Can I Borrow?

Up to a maximum of 80% of the property valuation. Many Lenders will only advance up to 70%. Your monthly mortgage repayment should not exceed 35% - 40% of your net disposable income.

Which Currency Should I Borrow In?

Most major currencies are available. You should be aware of the ‘currency risk’, if you rely on a Sterling income to pay your mortgage repayments and your loan is in Euro, your monthly repayments could increase if the £ Sterling weakens against the Euro. However, your property will be valued in Euro in a country that trades in the Euro currency. There are also a number of Foreign Currency Exchange Companies who can help you to ‘forward’ purchase currencies and reduce the costs of transfer to your Spanish Bank.

How Long Will the Mortgage Term Be?

The standard term is 25 years. The minimum term is 5 years but it is possible to arrange 15, 20, 30 and even 40 year terms.

What Will It Cost?

• Most Spanish Banks will charge an arrangement fee of between 1-1.5% of the mortgage loan advanced. A valuation fee on a sliding scale dependent on the property value.

• Notary costs, taxes, property registration and legal fees of the Lender.

• Allow a provision of 12% of the purchase price to cover your purchase and mortgage fees.

What Rate Of Interest Will I Pay?

Generally the Spanish Banks use the 12-month EURIBOR (Euro Inter Bank Offered Rate) as the index for calculation of mortgage interest rates. At the time of writing the 12-month Euribor is 4.6% with the usual margin being 1-1.25 points, giving a standard variable rate of 5.6%. This figure should be taken as a guide only as individual circumstances can dictate higher or lower rates.

How Often Will The Interest Rate Be Reviewed?

Usually, once a year, on the anniversary of your loan. If there has been an increase or decrease in interest rates during the year this will be reflected in your new monthly payment for the following year.

What Happens If I Wish To Clear My Mortgage Early?

A few Spanish Banks allow you to repay your mortgage without penalty. Most Spanish Banks will charge a 1% redemption penalty. There are some Lenders who will allow you to repay 10%-25% a year without penalty.

What Information Will The Bank Require?

Lenders vary in the amount of information they require, however as a general guide you can expect to be asked for:

• Completed application form

• Copies of your last 3 salary slips

• Copy of your last tax declaration (P60 in the UK)

• Copies of up to 6 months Bank Statements

• Copy of your Passport or Residence Permit

Self-Employed people will be asked for:

• Copies of Accounts for the last 2/3 years

• Accountants letter confirming annual personal drawings from the business

• Copy of last Tax Declaration

• Personal Bank Statements and or a Bankers Reference

• Copy of your Passport or Residence Permit.

Do I Need Insurance?

Legally you are only obliged to take out insurance to protect the property i.e. Buildings Cover. Your Lender can provide buildings and Contents cover.

We strongly advise that life insurance cover should be taken out to protect your family in the event of premature death or disability. In most cases this is a small premium to provide financial security for your loved ones at a very vulnerable time.

FOR AN HONEST, PROFESSIONAL & RELIABLE SERVICE

Alison Barker - Qualified Mortgage Broker

Financial Planning Certificate 1.2 +3

CeMap & Advance CeMap (Certificate in Mortgage Advice and Practice)

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