Raising the money for a house deposit ?

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spanish_lad
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Raising the money for a house deposit ?

Postby spanish_lad » Tue Jun 22, 2021 1:45 pm

As we all know, buying a house in spain requires a 30% or so downpayment/deposit/fees.. On a 100k house that is 33k in the bank.

We have been told that our bank can not lend the deposit - i asked about a personal loan to cover the fees, and a mortgage. They agreed the mortgage, no problem, but refused the 30k loan.

Is there another way to do it, apart from save save save and save some more ?

We are 3 people on minimum wage, even with our 3k a month coming in we still have to live, so realistically we can probably save 1k a month.. I dont really wanr to wait 30 months - 2 and a half years before we can look at buying a house, i'd rather do it this year, is there any other way ?

I was thinking of a credit card or two, with a 10k limit, and maxing them both, then pay them off monthly?

Do any loan schemes exist for 'first time buyers' here ?
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pepe jose
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Re: Raising the money for a house deposit ?

Postby pepe jose » Tue Jun 22, 2021 5:20 pm

The reason your bank won’t lend you the 30k is because then they are committed to 100% mortgage which will be against the business model. I suppose if you tried another lender you may have a chance of getting the extra 30%.

markwilding
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Re: Raising the money for a house depMyosit ?

Postby markwilding » Tue Jun 22, 2021 5:56 pm

Personally, I wouldn't go down the credit card route. Interest rates are extremely high compared to bank loans. Even then interest on a a bank loan would be higher than a mortgage but manageable. You might also find it difficult finding a credit card company offering 10,000 euros credit.

Depending on age, there is some government help for younger people, something that might be worth looking into.
Good luck.

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chrissiehope
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Re: Raising the money for a house deposit ?

Postby chrissiehope » Tue Jun 22, 2021 10:46 pm

It doesn't sound hopeful, but just a thought - did you apply for the mortgage between all 3 of you ? and would it be possible for each of you to take out a 10K loan ? Or maybe if one person isn't on the mortgage, then can they apply for a loan ?
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katy
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Re: Raising the money for a house deposit ?

Postby katy » Wed Jun 23, 2021 3:42 am

What about rent to buy? Some are desperate to sell, just a thought.

Screagle
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Re: Raising the money for a house deposit ?

Postby Screagle » Wed Jun 23, 2021 11:31 am

I think Katy might be onto something there. In effect your rental payments would be mortgage repayments. In the UK this is known as shared ownership and such schemes are widely available. You may even find that these schemes are offered by lenders in Spain who've repossessed properties.

Saludos

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Re: Raising the money for a house deposit ?

Postby Paddy Pumpkin » Wed Jun 23, 2021 1:07 pm

A couple of options for a 100% mortgage.

Approach a mortgage broker or try to buy a house that has been repossessed by the bank and take the mortgage from the same bank

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Re: Raising the money for a house deposit ?

Postby katy » Wed Jun 23, 2021 2:09 pm

When we sold our villa we received 3 bank drafts. 1 from the couple. 2 from separate banks.

katy
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Re: Raising the money for a house deposit ?

Postby katy » Wed Jun 23, 2021 2:13 pm

katy wrote: Wed Jun 23, 2021 3:42 am What about rent to buy? Some are desperate to sell, just a thought.
just googled, seems to be a lot. Only looked at one site

https://www.fotocasa.es/es/alquiler-con ... eCenter=-4

pepe jose
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Re: Raising the money for a house deposit ?

Postby pepe jose » Wed Jun 23, 2021 2:43 pm

There is a government website that deals in seized goods from a paperclip to a helicopter. Lots of houses and all they have to do is get the best bid. Lots of dealers buy so if you top a dealers bid you are getting whatever you buy at a bargain price. I will try and find the site. Only drawback is you may have to prove you have the funds before bidding, not sure if a mortgage offer is good enough.

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Re: Raising the money for a house deposit ?

Postby Paddy Pumpkin » Wed Jun 23, 2021 2:53 pm

katy wrote: Wed Jun 23, 2021 2:09 pm When we sold our villa we received 3 bank drafts. 1 from the couple. 2 from separate banks.
A bankers draft is drawn on the bank so the underlying payee who gave the money to the bank is unknown.

So say for example I went to buy a house in Spain from XYZ. I have three banks accounts in Santander, BBVA and Bankia. I go to the three banks and ask them to give me a draft payable to XYZ. I then give the drafts to XYZ. XYZ has no idea where the money came from that paid for the drafts. It could have been my own savings, a mortgage or Great Uncle Bulgaria.

When I bought my first ever house the seller had already been let down by a previous buyers mortgage application and wanted a quick sale. I said I was a cash buyer (I had mortgage approval for more than double the cost of the house) and they accepted my lower offer. I told my solicitor and they said no problem the buyer never needs to know where the money is coming from. The solicitor completed in 10 days and I got the house for 30k less than the first buyer.

Paddy Pumpkin
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Re: Raising the money for a house deposit ?

Postby Paddy Pumpkin » Wed Jun 23, 2021 2:56 pm

pepe jose wrote: Wed Jun 23, 2021 2:43 pm There is a government website that deals in seized goods from a paperclip to a helicopter. Lots of houses and all they have to do is get the best bid. Lots of dealers buy so if you top a dealers bid you are getting whatever you buy at a bargain price. I will try and find the site. Only drawback is you may have to prove you have the funds before bidding, not sure if a mortgage offer is good enough.

The banks also sell direct

https://www.bancosantander.es/en/partic ... -inmuebles

There are many other also

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Re: Raising the money for a house deposit ?

Postby maureenscot » Wed Jun 23, 2021 9:14 pm

Go to a broker. They will know all the 100%, 95% and 90% lenders and are better at negotiating. make sure it is a tried and trusted one. Have a look on Martin Lewis;s website

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spanish_lad
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Re: Raising the money for a house deposit ?

Postby spanish_lad » Wed Jul 21, 2021 6:57 am

Thanks for all the information guys (and girls)..

We have looked into rent to buy - which sounded like an excellent plan, normally there's a deposit and then monthly payments for a year or two, then you have to get a mortgage. Most of the people offering this system only want to rent for a year or two, so it doesn't really help anything.

As for 100% mortgages, we have approached a couple of companies / brokers and so far nothing has been positive. They have said 'go save up.

I'll keep looking.

It annoys me immensely that we are paying rent to a Spanish family who own 8 houses, and if we had a mortgage it would be our own and be cheaper.
Last edited by spanish_lad on Wed Jul 21, 2021 12:09 pm, edited 1 time in total.
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BENIDORM
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Re: Raising the money for a house deposit ?

Postby BENIDORM » Wed Jul 21, 2021 7:57 am

Getting a mortgage as a foreigner in Spain has always been extremely difficult, I did try about 30 years ago, they just laughed, it was easy to sell my soul to the devil.. :shock:

Anyway Good Luck and keep putting money into your piggy bank..

Saludos,
Gordon


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