Mortgages and Finance
Finance many developers of new properties are now offering up to 80% over 20 years for non-residents. Local banks will offer anything up to 60%-80% of the declared value for European residents. Most loans are long-term and secured on the property. When seeking a loan, make sure you are aware of the interest rates and if they are fixed or floating. Banks will ask for passports, residence permits, pay slips, sale contracts and copies of the title deeds. There are many advantages to taking out a loan to purchase your property, in the form of tax allowances. We have not listed them here as they are subject to fluctuation. You may need to transfer money into Spain and you need to protect yourself.
When buying a property in Spain, you will know the price of the property in Euros but you will not know the actual cost until you buy all of the currency to pay for it. Either this means that the property could cost you more than you had planned (if the Euro strengthens) or the property could become cheaper (if Sterling strengthens). Recently Sterling has fluctuated more than 10% against the Euro within a matter of months, so this does deserve careful consideration.
On the basis that you are buying a property and not speculating on the currency markets, it is worth fixing the exchange rate for all of your future stage payments to the agent/developer.
