My partner and I are buying an off plan apartment with Polaris World and are heading towards completion
We had taken steps to arrange a Spanish Mortgage through a UK bank and had received an Agreement In Principle 5 months ago. Given the current market conditions, when we have reached the point of firming up the offer, their criteria has now changed (unbelievably they are not in the market for advances less than €100k and are no longer able to help us)
Back to square one, our revised plan is now to release some equity from our UK property and I have just agreed an additional advance through my existing mortgage company which will be enough to cover completion.
Can anyone enlighten me as to the pros and cons of this ?
- All our borrowing will be in sterling. We only have an income stream in Sterling and can agree an attractive fixed rate so I see this as removing exchange rate risk (other than ongoing costs)
- I appreciate that the £/€ rate at time of completion will mean we are paying 20%+ more than we would have 12-18 months ago although we have already funded the stage payments at the worst possible time so have learnt to live with it
- Our Spanish property will be unencumbered - what costs are we likely to save by doing this when we come to complete ?
- What happens to the deeds to the Spanish property - would you still lodge these with a bank or solicitor in Spain ?
- Any other considerations ?