Spanish Mortgage Types
In Spain, as with any other developed mortgage market there are big differences in the costs and terms of the mortgages available. Not only do Spanish mortgage terms vary in their attractiveness from bank to bank, they can also vary considerably within the same bank, and even from branch to branch. So where do you start your search for the ideal home loan? The good news is that we constantly monitor the mortgages available in Spain to ensure that our recommendation to you is up to the minute, accurate and tailor made to suit your requirements.
Repayment & Interest only Spanish mortgages
Spanish mortgages are usually linked to a variable rate and on a repayment basis however we are seeing more Interest only Spanish mortgages, coming to the marketplace. Spanish repayment mortgages are a combination of interest and capital being repaid monthly to the lender. This way you will see a gradual reduction in the outstanding loan on your property and a creation of equity within it. It is guaranteed to repay your loan if you maintain the repayments.
Interest only mortgages in Spain, as implied, only repay interest on the loan. At the end of the term the amount you borrowed initially is repayable as a lump sum. This type of loan is ideal for those who wish to have a lower monthly repayment and are often used by investors as it means that more can be borrowed or multiple properties purchased as your buying power is greatly increased. Remember though that at the end of the term you will still owe the amount you borrowed.
Standard loan to values are up to 80% for non-resident mortgages in Spain and are always linked to the valuation of the property in Spain, not the purchase price.
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