When raising funds for property purchase care is essential when selecting either brokers or lender. To this end First Choice Spain uses an Independent Financial Adviser regulated by the Financial Services Authority whether the loan is arranged in the UK or Spain. This offers you security and protection.
RE-MORTGAGES
It is possible to re-mortgage your UK property to raise funds for additional property purchase in Spain.   
You may select an Interest Only Loan (no repayment vehicle required) or a Capital and Interest (Repayment) Mortgage. Loans may be for up to 30 years on a single or joint basis. Some lenders now have no maximum age stipulations. Maximum amount will be around 90% of property value. Depending on your age(s) you may be able to ‘release equity’ in your home and have the interest roll up rather than paying any capital or interest. However the amount raised will be lower 20% -50% of property value.
 
Interest rates may be on a standard variable basis, fixed, discounted or capped. Redemption penalties may apply during any fixed or discounted period.  If you have an adverse credit history such as late payments on credit cards, loans or mortgages payments loans are still available but the interest rate will be higher and will usually contain redemption penalties of some kind.

Lenders fees will be applicable on re-mortgages, but, in the UK, some may provide free legal and valuations (‘fees free’).
Re-mortgage on a let property
The main difference between a residential re-mortgage and a let property re-mortgage is the rental income requirement. Although slightly higher in general, the same range of interest rates as residential are available for buy to let through interest only, repayment mortgages and adverse lenders. Maximum expiry age is normally 75.
 
Lenders do not usually offer a ‘fees free’ re-mortgage service in this area. Most lenders will require the main earner to have an income of between £ 15,000 and £ 20,000. The main requirement for a let property re-mortgage is a rental income of between 100% and 130% of the mortgage payments. This would need to be verified as potentially obtainable via a reputable rental agency. The lender is looking to see if the rental income is sufficient to pay the mortgage should interest rates rise. This often restricts the amount clients can borrow or re-mortgage on their let properties.

Self-Certification of Income
The Self-Certified option is available on both residential and let property re-mortgages. Self- Certification is where the lender will not require confirmation or verification of your income. Self-Certified mortgages are generally only available to individuals with at least 15% equity remaining in their homes after re-mortgaging. The more equity in your home, the lower the interest rate, as there will be less risk to the lender.


Spanish mortgage products available through First Choice Spain
100% financing packages can be possible by combining mortgages in Spain and the UK.
Maximum loan is 80% of the property valuation not the purchase price and this percentage is linked to price declared on the Escritura (title deeds). Loans are mainly linked to a variable rate that is reviewed annually and linked to the European inter bank rate (Euribor) and on a repayment basis although, as the market develops, products similar to those found in the UK are coming on stream. Fixed rates offered in Spain tend to be higher than the prevailing variable rate and generally for the term of the loan.   
Spanish Resident
For the Spanish Resident full finance and cost packages are available from lenders in Spain. Loans can be up to 120% of property value, with interest only and flexible deals available up to 70%.  Low Start and Equity Release products are also available.

Mortgage Lenders
Many of the mortgages arranged via First Choice Spain are not available direct from Spanish Banks and are subject to the particular lender’s criteria and your status. Rates and costs are available in writing on request for all mortgages that we arrange.

Risk Warning

Please always remember the following when using a mortgage for any finance: -

Your property is at risk if you do not keep up repayments on a mortgage secured on it.

Be sure you understand and can afford the repayments upon which you have agreed before entering into any contract and that the value of your property can fall as well as rise.

Many lenders and brokers in Spain charge up to 5% for arranging mortgages. We at First Choice Spain do not charge any fees and we always try and choose lenders with low arrangement costs, providing the suggested provider’s product is suitable for your needs.

Wills and Inheritance Tax Planning  

Whether you use First Choice Spain for finance or not, consideration must be given to having Wills both in the UK and Spain because of Inheritance Tax implications. Our adviser can provide this service.   

Information and Enquiries

We at First Choice Spain pride ourselves on offering a personal service and to this end we have a dedicated telephone line where you will speak to a ‘Human Being!’ who will refer you to our financial adviser to discuss and advise on  mortgage products most suitable to your needs and circumstances.

Please call (0034) 952-817 369 and ask for the mortgage department of First Choice Spain.