Spanish Mortgages  v  UK Mortgages
Many have wondered if it benefits an investor in Spanish
property to have their loan processed in the UK or Spain.
This article is written for the express purpose of
comparing the two in an attempt to help you make an
informed decision.
 
The largest question to answer is whether or not you intend
to live in Spain once the purchase is made. It is generally
accepted that interest rates are a little lower outside of
the UK, but banking with someone you know and trust could
make the difference. Today, Spanish banks or ‘Bancos' are
more favourable towards foreigners investing in Spain. For
the sake of this article let's look at this as if you
wanted to buy a home in Spain with a bank in the UK, and
then we will look at it from the Spanish bank's view.
Mortgages are mortgages, right?  Well, let's see.
 
There is first the difference in mortgage rates. When you
compare Spanish Mortgage v UK Mortgages, you will find that
the latter is a lower by around 5%. Spanish banks also
offer several plans so be sure to evaluate them all before
you make a final choice. You will find that competition
between Spanish banks is quite stiff. Therefore, you can
negotiate with several banks and they will do everything to
better the offer of the other bank. When comparing Spanish
Mortgage v UK Mortgages be informed that Spanish banks will
not allow you to show projected incomes especially on rent.
When choosing to deal with a Spanish bank you will find
that most banks are familiar with the process of property
acquisition thus this can be a good resource for further
information. Another advantage of dealing with a Spanish
bank is that your mortgage or your liability is in the same
currency as your property or your asset. When comparing
Spanish Mortgage v UK Mortgages you will find that interest
rates are lower for a Spanish mortgage so your payable
monthly interest will not be very high. When comparing the
deposit required with regard to Spanish Mortgages v UK
Mortgages the latter is higher by around 20 – 30%. If you
want to rent out your property it helps if your income is
in the same currency as your interest payment. When it
comes to Spanish Mortgages v UK Mortgages unfortunately you
may not receive favourable terms from a UK banker as most
of them are unfamiliar with investing in Spanish property.
When comparing Spanish Mortgages v UK Mortgages it is wise
to higher a tax consultant as the tax rules for each
country can have a direct impact on the mortgage costs.
Spanish Mortgages require property as collateral, but UK
Mortgages, even for purchases in Spain will require, in
most cases, collateral in the UK. When you want to purchase
a home abroad it is a good idea to hire some professional
help to ascertain the best possible outcome. When comparing
Spanish Mortgages v UK Mortgages, the terms of repayment
for UK mortgage ranges from 5 years to 30 years while for
Spanish mortgage it ranges from 5 years to 40 years. So it
is easy to see that there is a little more offered in
Spain, when compared to UK.
 
When all the dust settles down, however, it is left to the
judgment of the individual buyer to decide. Hopefully, you
are now more equipped to make a comparison between Spanish
Mortgages v UK Mortgages.
 
 
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Steve Magill is the right source for more information on
the Spanish mortgage market. He is a partner in
http://www.buyspain.co.uk  and a Fellow in the British
Association of Entrepreneurs (FBAE). He holds international
renown for having hands-on experience in this field.
 
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