Mallorca property buyers have been a focus for Mortgage Direct since we were established in 2006.
Mallorca – the largest of the Balearic Islands – has an exclusive property market. It is justifiably renowned for its beautiful beaches, weather and gastronomic food. Since 2008 when the economic crisis hit Spain hard, many property owners were forced to adjust property prices by an average of 15-30% depending on the area. In the last few years, the island has seen a marked increase in activity and in some areas, property sales have doubled. Prices are stable and now is a great time to buy.
In terms of mortgage borrowing, whether you’re buying as an investment, holiday home or to move to this magical island permanently, we look forward to assisting you. We can help clients with even the most complex financial profiles including those living and working on yachts (who tend not to have income tax declarations due to working offshore).
With the volume of business we process in the Balearic islands, we are able to negotiate the very best conditions with our banking partners; far better than those that may be available to our clients should they go to the banks directly. In fact, some of the terms we have recently negotiated for properties on the island have been some of the best mortgage conditions we have ever seen!
You will benefit significantly by using our service and this is especially important in Spain right now, following the introduction of the new mortgage legislation whereby some banks are withholding certain fixed rate products from clients earning in currencies other than Euros. There are also wealth tax implications to consider which can be offset by having the correct finance in place.
Mortgage process for Mallorca property buyers
Once the mortgage is approved, whether with a local bank or on the Spanish mainland, the process remains very local. We have local representatives who know the island inside out; we also work with local lawyers and valuation companies (all approved by the Bank of Spain) to ensure our clients receive the very best service all the way through to completion.
In particular, we work with highly reputable and well-established law firm in Palma who is able to obtain emergency NIE’s (foreign identity number) in 48 hours through the tax office once an application has been submitted in the standard manner. The standard NIE application process has become this year more lengthy due to new processing regulations – often exceeding 2.5 months – and this useful collaborating firm means property transactions are not at risk or delayed. Additionally, our contacts can help with Powers of Attorney when required, with a typical turn around time of one week.
And finally, on completion day, a representative of the local bank branch will sign the mortgage on behalf of the bank and our clients can continue to manage their everyday banking requirements locally thereafter.
We look forward to sharing the experience with you and helping you to secure your dream property on this charming island.