Getting a mortgage in Lanzarote can be a tricky business at the moment with the current economic climate. Our thanks go to Nicola from RH Lanz for this informative article.
Some Current Facts on Spanish Mortgages
Whilst we can say goodbye to the giddy heights of 100% plus mortgages there are still some good rates and more importantly options available.
With property prices at amazingly low prices all over Spain, people are discovering that they can still secure that property in the sun. The banks are still lending albeit cautiously.
Restrictions on lending to the self employed, along with those employed in building trades, investment banking and property. These groups are not disregarded totally but will face more scrutiny than before.
Properties that are harder to mortgage include rustic hotels and apart-hotels, there are lenders but only a small selection.
Income to debt ratios are now more stringent and need to be 30% to 35% (a decrease of 5%).
The current best on offer for non-residents-
80% of the purchase price if valuation allows. (But will not exceed 70% of valuation)
Best rates at 70% including interest-only facility – 12-month Euribor plus 1.39%
Best rate 70% repayment – 12 month Euribor plus 1.15%
One lender is offering full term interest-only, but rates are higher at 1.8% above 3-month Euribor and 65% of the purchase price is the maximum.
The majority of lenders are offering –
65% to 70% of valuation or purchase price, whichever is lowest.
Up to five years interest only
Euribor is at its all-time lowest as of today –
12-month Euribor 1.85% today
3-month Euribor 1.81%
Monthly Euribor 1.12% this month
Documentation required for an application –
- Credit file in full www.creditexpert.co.uk
- 3 to 24 months bank statements
- Latest tax return P60 or self-assessment
- Accountants or employers’ reference
- 3 months’ pay slips
- Utility bill proving residency
- NIE certificate
This information is accurate at the time of writing, and all applications are subject to status.