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Spanish mortgage deals 2020

Spanish mortgage deals for Q4 2020: There is a good choice of properties and mortgages from Spanish banks and with more building starts – and restarts of recession troubled sites – from developers for any year in the last decade Spanish property buyers are returning to the market despite the impact of Covid-19. Plots in prime locations are well-priced and 100% mortgages on the building costs are available. 

Best buys – New apartments and villas from leading banks who have taken charge of developments under construction where developer loans are in default. Brand-new, some with years of construction guarantees, these homes are excellent value with peak to present discounts around 35%.

  • Resale homes can generate up to 70% LTV and brokers are offering rates for high rated clients from 1.5% fixed for up to 20 years. Interest rate from 1.3% variable up to 30 years. On 500K plus 9% purchase tax.
  • New build development, finance depends on the current specific deals from the developer or as above. On new properties 10% VAT.
  • Plot to build: client buys plot outright with cash, becomes the promoter and has the selected villa built to turnkey project for the price all included. 21% vat on plot and 10% on the build. Up to 100% finance for building costs is possible. 

With mortgage deals from the vendor banks around 3% APR and now fixed interest for 20 years from Hola Bank, the English speaking specialist, property buyers are being tempted to buy a property in Spain once again. Best interest rate for Q4 2020 is 1.9% variable for a 60% loan or 2% for 70% loan. Walkerspain.com buyers can be pre-qualified for their Hola Bank mortgage as part of a Purchase Ready service that smooths the way to a successful purchase and the most suitable mortgage.

Offers – Spanish banks want the properties off their books and will listen to realistic offers. These are formally submitted to special committees that meet weekly and will generally provide an answer with two weeks. However, as the selected property remains on the market, there is the chance it may sell directly off the website or through a higher submitted offer.

Legal – All bank controlled property is fully legal and as such qualifies for generous mortgages as shown here. However, we advice all buyers to hire their own independent Spanish solicitor to check all paperwork, undertake conveyancing and registration and assist with utility provision etc. We can provide firms who have assisted previous buyers successfully.

Endeudamiento/DTI – This is the debt-to-income ratio, and is the percentage of your net income which your total mortgage and loan payments will represent. For example, if your net income is 3000 Euros per month, you already pay 750 Euros per month for your existing mortgage, and the mortgage applied for will have repayments of 250 Euros per month, your Endeudamiento/DTI will be (250+750)/3000 = 33%.  NB – if you are renting out a property longterm, some banks may also include part of your rental income in this calculation.

:  : All offers subject to buyer status and availability.

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Spain’s boost from record visitors and spending

Spain’s boost from record visitors and spending

Spain’s boost from record visitors and spending : : Spain attracted 82.8 million international visitors in 2018, a new record boosted by 18.5 million British holidaymakers and property owners. It was the sixth successive year for growth, achieved by a fourth quarter spurt in arrivals.

Visitors stayed for around a week on average and spent a record amount of €146 per head per day, according to the report from the National Statistics Institute (INE).

For the sixth year in a row, Spain has set a new record for foreign tourist arrivals. There were 82.8 million international visitors last year, a rise of 1.1% from 2017.  Spain’s boost to the economy amounted to €89.9 billion, representing a 3.3% increase from 2017.

Record number of North American tourists

More Americans than ever before arrived in Spain during 2018 – an increase of 11.8% – despite renewed competition from Greece, Tunisia and Turkey. Tourism from Scandinavia dropped 0.7% to 5.7 million and Germany, second biggest market after Britain, had a drop of 4.1%

However, 2018 was the year that tourist destinations like Barcelona, Ibiza and Mallorca clamped down on unregistered tourist lets, threatening fines for owners and agents. This follows protests from locals faced with increased property prices and hooliganism. Mallorca is seeking to ban 18-30 style holiday groups after confrontations and balcony deaths.

Offers on bank-owned property in Spain

Offers – Spanish banks want the properties off their books and will listen to realistic offers. These are formally submitted to special committees that meet weekly and will generally provide an answer with two weeks. However, as the selected property remains on the market, there is the chance it may sell directly off the website or through a higher submitted offer. Walker Property Spain have a well-honed purchase management service for buyers.

Legal – All bank controlled property is fully legal and as such qualifies for generous mortgages.  However, we advice all buyers to hire their own independent Spanish solicitor to check all paperwork, undertake conveyancing and registration and assist with utility provision etc. We can provide firms who have assisted previous buyers successfully.

Endeudamiento/DTI – This is the debt-to-income ratio, and is the percentage of your net income which your total mortgage and loan payments will represent. For example, if your net income is 3000 Euros per month, you already pay 750 Euros per month for your existing mortgage, and the mortgage applied for will have repayments of 250 Euros per month, your Endeudamiento/DTI will be (250+750)/3000 = 33%.  NB – if you are renting out a property longterm, some banks may also include part of your rental income in this calculation.[/vc_column_text][/vc_column][/vc_row] Check latest mortgage offers

Author : : Elliott Barnett, international property writer | Image: Shopping in Spain remains a top tourist attraction. 

More info Can Spain cope with more tourists? | Palma, Mallorca bans holiday apartments    
  
  

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Spanish property – Purchase Ready clinches the deal

Spanish property buyers be purchase ready and secure first choice home...

Spanish property – be Purchase Ready :: Property buyers are missing out on their Dream Home choices in Spain because their legally required documents are not available or up to date when needed. They are essential for viewing property, mortgage approval, putting in an offer to purchase and at the notary when registering the sale.

The property source – bank, developer or private seller – needs to know you are a serious contender with your finance in place and a strong completion date in mind. Recent legislation has added to the purchase paperwork. Typically, around 50 documents per couple have to be collated and ready to secure your chosen dream home.

The Spanish real estate market is returning to previous peak levels of activity and sales. It is obvious there are many properties to sell and plenty of international buyers hunting them down. It’s a fact the best properties go first and, generally, they are snapped-up – by the best prepared buyers.

“Your” dream home sold to a rival buyer

There are 1,000s of “miss buyers” who have failed to get their act together. Instead they have been locked in multiple paperwork deadlocks with banks’ property and departments, Spanish solicitors, developers or promoters. After a month or so of impasse, the seller sees an easier and quicker way to close a deal – and sells “Your” dream home to a rival buyer who has finance and paperwork organised.

Mis-selling in real estate has been around a long time, but “Miss buying” also leads to frustration, tears and heartache for buyers. It happens every day. It’s a sellers’ market…get over it and make sure you are in pole position next time.

From 2001, including the recessional decade from 2007, Walker Property Spain has helped buyers achieve outstanding deals on properties with timely advice and action. Launched in 2017, a FREE purchase management service for international buyers. Purchase Ready was hailed as a great new idea – help and advice when needed and improved sales progress to secure the desired property.

The firm’s Purchase Ready team helps buyers collate all the ID and status paperwork they would need for a speedy purchase; obtaining a mortgage and NIE, the Spanish document necessary to borrow and spend and have utilities in Spain. It was welcomed by stressed-out buyers, wrestling with mañana, mañana responses, tangled forms and their own busy lives back home.

More:  Alcazaba Lagoon Casares new deals | Things to consider
Image: Alcazaba Lagoon Casares, Costa del Sol where phase 2 apartments now offered offplan