LATEST PROPERTY NEWS
- Some reasons to consider property for sale in Los Cristianos
- Los Cristianos
- Los Cristianos gets a Makeover
- Euribor falls to 1.3%
- Huge reduction to Los Cristianos property
- New laws in Spain
- Foreclosure Property List
- Eurozone interest rates cut to 2%
- All Time High for Property Investment
- Interest Rates Cut to 2.5%
- Good News For Home Owners
- Canaries House Prices Hold Up Against Mainland Spain
- Siam Park Opening a Huge Boost to Tenerife Tourism and The Tenerife Property Market
- Eurozone rates lowered to 3.25%
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- Credit Crunch Offers Fantastic Deals
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Mortgage Options for your Tenerife Property
Many guides about buying property in Tenerife assume that potential buyers actually have the money available, but if you are considering buying a house in Tenerife because you live and work here, or because you simply want to invest in real estate in Tenerife, you may want to consider taking out a mortgage with a Spanish bank. Whether you want to buy a finca in the Canary’s, a holiday apartment on the Costa Blanca or a new home in
Interest rates in Tenerife vary, but are generally much lower than in the UK, and competition between Spanish banks is fierce. If you are interested in a property still to be built, you may find that the constructers already have an agreement with a certain Spanish bank for all mortgages and you are left with little choice. If not, you would be wise to shop around for the best deal.
Don't accept the first offer. Ask for a copy of one bank's offer and then take it to a different bank to see if they can improve the offer - they often will. Then take the improved offer back to the original bank - you may get a pleasant surprise!!
You will be expected to prove ability to pay (i.e. wage slips from the last 3 months and bank statements of the last 6 months or, if you are self-employed, copies of your last 3 years accounts (with an auditor's stamp) and copies of you last 12 month's business bank statements and your last 6 months personal bank statements). Proof of payment based on your ability to pay with income received from renting the property will not be taken into account by Spanish banks.
If you are not a legal resident in this country, then you may be asked to provide an aval. This will be somebody usually based in
Most Spanish banks currently offer mortgages of 60-80% property price over 5, 10, 15 or 20 years depending on whether you are a resident here or not. Some banks offer 100%. The current variable rate is about 4.5% and there is usually an early write-off fee of around 1%.
Spanish banks may seem quite lenient where mortgages are concerned but bear in mind they are soon to snatch the property back loosing your home or investment if mortgage bills are not paid.
For some excellent deals on Property in Los Cristianos, why not contact the team on 922 787 717, we can finance your home today.
