Spanish mortgages

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bbobandannie
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Spanish mortgages

Postby bbobandannie » Sun Jun 18, 2017 3:24 pm

We have been renting in Andalucia for almost a year now and long term have changed our plans to consider buying here now. We both have decent military pensions and a good income from a small portfolio of UK properties. We could sell UK properties to finance a purchase out here but as the income is good, and we like all our tenants, we are thinking of a small Spanish mortgage Does anyone know whether a Spanish bank would lend on a pension and rental income? If so, can anyone recommend a decent broker? Any help greatly appreciated.

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patricia
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Re: Spanish mortgages

Postby patricia » Tue Jun 20, 2017 11:38 am

They do give mortgages in Spain for people longer then they do in the UK. I think up until you are 75 you would have to check. However whether you would get a mortgage on an income coming from the UK is debatable. Why not go into one of the Spanish banks and ask them!

If you are in Andalucia why not go into one of the banks and ask yourself. I think it would depend on the bank. I know when I was looking for a mortgage and even though I was in full time employment with a Spanish contract a few banks turned me down, but I found a bank who was happy to give me a mortgage, not a large one but I have paid that off now.
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Danielle-TMS
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Joined: Mon Jun 19, 2017 9:48 am
Location: Spain

Re: Spanish mortgages

Postby Danielle-TMS » Fri Jun 23, 2017 11:51 am

Hi bbobandannie,

In answer to your question- yes they do lend on English pensions & rental income, however your eligibility to borrow is determined by your debt-to-income ratio- Any fixed loans and mortgages (including your new Spanish mortgage) should not exceed 33% of your net income.

As a non-resident (by this we mean your income comes from outside of Spain- regardless of whether you have your Spanish residencia) you can get a maximum loan-to-value (LTV) of 70%.

The maximum term available to you is 25 years, however this must be paid off by the time you are 75. So for example, if you are 65, maximum term will 9 years.

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Good luck with your property purchase! :D

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