- Capital Raising
- Remortgage in UK to raise capital
- Overseas mortgages with UK lenders or established Spanish lenders
- Holiday Homes, Buy to let etc.
- Equity Release
Monies may be required in two stages especially if your purchase is a new property. Depending upon the location, you will need to find anything up to 50% for the deposit plus 7% tax within the first weeks, and the balance will be due on completion which could be anytime up to two years later. In addition there will be legal fees, services etc.
The finance can be arranged from a variety of sources as follows:-
Mortgage - If your UK property is not currently mortgaged, we can arrange a mortgage with UK lenders normally for a minimum amount of £25,000 there is no maximum subject to conditions. Non status loans and Self Certification loans may be possible.
Remortgage - Re mortgages can be arranged on your existing UK property if your UK property has some equity available. We have access to over 2000 different mortgages, including all the high street lender's. Some of the schemes are exclusive to us.
Equity Release - For those clients who no longer work and have a UK property with no mortgage, equity release can be an ideal way to raise finance. We work with reputable lenders who give 'no negative equity' guarantees.
Spanish Mortgage - A minimum of £15,000 with no maximum but must not exceed 70% of the valuation or purchase prices. Spanish mortgages are normally repayment. There will be an arrangement fee typically up to 1% of the loan. Terms are 5-30 years up to the age of 70. All Spanish mortgages are "full status" and proof of income for a minimum of two years is required. Affordability is calculated differently to the UK mortgage market, it is based on joint 'take home' pay less existing liabilities/outgoings. Spanish mortgage payments must not exceed 35% of your net monthly income and not all income may be allowable. Affordability terms vary in Spain depending on the lender. All Spanish mortgages are in Euros.
GUIDANCE NOTES
In Spain mortgage lenders work differently to UK lenders, their criteria can be different and their administration and legal systems can be slower.
A Spanish bank account will be required and some lenders offer this as part of their service, but not all.
Check with Destination Sun Homes/vendors that you are aware of the costs charged by the legal and government authorities for purchasing a Spanish property, noting that the lender will have their own legal costs for arranging the loan (the cost of which they will normally advise when they issue the mortgage offer).
It is essential that you take the appropriate independent legal advice if purchasing a property new or otherwise, exactly as would be expected if your were purchasing in the UK.
It is advisable to arrange your mortgage finance in principal before agreeing to purchase a property.
YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT. Written quotations available on request. Mortgages subject to status and valuation. The sterling equivalent of your liability under a foreign currency mortgage may be increased by exchange rate movements.
