Welcome to our March newsletter. Last month we announced that we had been accepted onto the UK’s Financial Conduct Authority (FCA) register. This month we can report that one of our advisers is now licensed to offer UK mortgages, including UK buy-to-lets.
If you have been declined a Spanish mortgage or you have a shortfall on the deposit for a Spanish property purchase, the solution may be to release equity from your UK property. Although many banks prefer that the deposit does not come from borrowed funds, some are open to it for clients with good profiles and who pass the affordably checks. Alternatively, if you borrow all the purchase funds on your UK property and come to Spain with cash in your hands, this can be attractive to the seller and a lower price may be negotiated due to the potential for a quick sale.
Hot news: re-mortgages now being offered!
We have just heard from one of the banks we work with that they are now offering re-mortgage products to non-residents. If you have signed a mortgage with an interest rate higher than 2.50%, you may be able to switch providers. The new bank pays the costs of the new mortgage – the valuation, registry, notary and gestoria fees. We had been expecting this to come now that the bank has to pay the AJD tax on the mortgage and other associated costs, meaning you don’t have to pay these costs twice. We haven’t submitted a case yet as the announcement was made at the time of writing. Let’s see if more banks follow suit…
Spanish speaking advisers & fiscal residents
While our main market is non-resident/foreign clients, we are completing more mortgages for fiscal residents and Spanish-speaking clients from other countries. If you are a fiscal resident, we ask that you speak with your own bank first (in Spain), as they are most likely to give you preferential terms due to the bank having a better understanding of your income history and spending habits including debts. We have Spanish-speaking advisers, so please get in contact if you or another applicant would prefer to talk to someone in Spanish. We can also assist in Dutch, German, Portuguese, French and Polish if this is of interest.
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