Join the Almoradí forum
My name's Alex and this is my website all about Almoradí in Spain. Register now for free to talk about Banking and finances in Almoradí and much more!
Hi does anyone know if you can get a mortgage for a property you already own in Spain and if so how long you need to own it.
We are looking at buying something that needs some updating and wondering if we can buy, do the work and then get a mortgage? We are non residents. Perhaps an added complication is that I am an Irish citizen and my husband is U.K. although we are tax residents in Ireland.
Thanks
Posted: Fri Feb 19, 2021 9:37pm
Super helpful member
Hi Jackie,
I can’t give you a true answer but in my opinion I don’t think you will get any type of loan if you are not a Spanish resident. I know people took out mortgages years ago during the boom and then found themselves unable to pay their monthly repayments. Many handed the keys back to the bank and others simply walked away leaving the banks in financial trouble. I’d be surprised if the banks lend to anyone who isn’t a resident but no doubt someone will tell us the facts. You never know, you could be in luck. ...I hope you are.
Posted: Sat Feb 20, 2021 6:11pm
Very helpful member
JackieP2017 wrote on Thu Feb 18, 2021 10:55am:
Hi does anyone know if you can get a mortgage for a property you already own in Spain and if so how long you need to own it.
We are looking at buying something that needs some updating and wondering if we can buy, do the work and then get a mortgage? We are non residents. Perhaps an added complication is that I am an Irish citizen and my husband is U.K. although we are tax residents in Ireland....
Read more...
...
Thanks
I think having a conversation with a few banks would be the best idea in this case.
Posted: Sat Feb 20, 2021 7:34pm
Grannyrose wrote on Fri Feb 19, 2021 9:37pm:
Hi Jackie,
I can’t give you a true answer but in my opinion I don’t think you will get any type of loan if you are not a Spanish resident. I know people took out mortgages years ago during the boom and then found themselves unable to pay their monthly repayments. Many handed the keys back to the bank an...
Read more...
...d others simply walked away leaving the banks in financial trouble. I’d be surprised if the banks lend to anyone who isn’t a resident but no doubt someone will tell us the facts. You never know, you could be in luck. ...I hope you are.
Thanks... me too!
Posted: Sat Feb 20, 2021 7:35pm
janiceroquero wrote on Sat Feb 20, 2021 6:11pm:
I think having a conversation with a few banks would be the best idea in this case.
You are probably right - was just hoping someone might have experience.
Advertisement - posts continue below
Posted: Sat Feb 20, 2021 8:14pm
Very helpful member
janiceroquero wrote on Sat Feb 20, 2021 6:11pm:
I think having a conversation with a few banks would be the best idea in this case.
But everyone's circumstances are different.
Posted: Sat Feb 20, 2021 8:24pm
Helpful member
Jackie,
I'm not sure what specifically it is you're seeking to do:
(i) are you saying you to want to re-mortgage on a currently unmortgaged property in Spain that you own to raise finance to purchase an additional property in Spain that is in need of some remedial work
or
(ii) you want to get a mortgage against a Spanish property that is in need of some remedial work?
If you are saying (i), then I don't think this should be a problem. But, as a non-resident expect to not be able to access the higher LTV amounts available to residents and also expect to pay a higher interest rate than a resident.
If you are saying (ii), then it would depend on the "state" of the property and it would be more likely that you would need to go through a mortage broker who would have better experience of the non-standard market and what is possible. This type of finance would invariably be more expensive than (i) as it increases the lenders risk exposure and so conditions may also be attached over how and when the money is advanced.
The other option would be to raise funds against a UK property if that were to be feasible - it might also work out cheaper given the fees associated with Spanish mortgages.
Cheers,
George
Posted: Sat Feb 20, 2021 9:09pm
George55 wrote on Sat Feb 20, 2021 8:24pm:
Jackie,
I'm not sure what specifically it is you're seeking to do:
Read more...
(i) are you saying you to want to re-mortgage on a currently unmortgaged property in Spain that you own to raise finance to purchase an additional property in Spain that is in need of some remedial work
or
(ii) you want to get a mortgage against a Spanish property that is in need of some remedial work?
If you are saying (i), then I don't think this should be a problem. But, as a non-resident expect to not be able to access the higher LTV amounts available to residents and also expect to pay a higher interest rate than a resident.
If you are saying (ii), then it would depend on the "state" of the property and it would be more likely that you would need to go through a mortage broker who would have better experience of the non-standard market and what is possible. This type of finance would invariably be more expensive than (i) as it increases the lenders risk exposure and so conditions may also be attached over how and when the money is advanced.
The other option would be to raise funds against a UK property if that were to be feasible - it might also work out cheaper given the fees associated with Spanish mortgages.
Cheers,
George
I’m trying to figure out options and possibilities. 1) could be an option for us but really what I was wondering was if it were possible (if I could raise the finance short term) to buy apartment and do the refurb (around 10-15k) then get a mortgage at what would hopefully be the increased value.
Posted: Sun Feb 21, 2021 5:28pm
Helpful member
Thank you for clarifying. I think you would be best speaking to a mortgage broker about what you are proposing so you can appraise them of your plans and they can establish whether any such product is available in the Spanish market.
I put "Spanish Mortgage Broker" into Google and it comes up with plenty of options - I'm afraid I can't recommend any of them as it is not something I have ever used.
Posted: Sun Feb 21, 2021 8:03pm
George55 wrote on Sun Feb 21, 2021 5:28pm:
Thank you for clarifying. I think you would be best speaking to a mortgage broker about what you are proposing so you can appraise them of your plans and they can establish whether any such product is available in the Spanish market.
I put "Spanish Mortgage Broker" into Google and it comes up with plenty of options - I'm afraid I can't recommend any of them as it is not something I have ever used.
...Read more...
...
Thanks
Find more Banking and finances topics from a particular area:
Or view all Banking and finances topics in all of Costa Blanca.
