english mortgage or spanish

Hi nickid,

I have just sold to clients who asked me the same question

I do not pretend to be an expert but i can give you their example.

They wanted to release £100,000 from their UK home to purchase a property in Spain,they did this by taking an interest only mortgage on their home for the full amount here,this kept their payments down and allowed them to purchase without selling,i think they were offered about 5.5% from an UK high street lender.

They had a lot of equity in their property in the UK allowing them to finance the purchase here.

They seemed pleased with the offer and payment terms they received,if i could offer advise it would be speak to your bank before you come to Spain and then at least you will know the budget that is affordable and you are comfortable with.

Smiley is the expert on Mortgages here and maybe he could offer advice on the Spanish side of things as he obviously knows the best deals avaliable.

Remember,Smiley for mortgages,Georgia for buying property!!!!

Regards

Georgia

Hi Nickid - to be honest the decision really should lie with you and your own personal circumstances. Without doubt arranging an equity release on your UK property is very straightforward but a lot depends on where you want the debt and long term plans for perhaps moving to Spain. Generally Eurozone rates are lower than in the UK and for long term tax planning it can prove more advantageous to have a mortgage charged on the property in Spain. Ensure that you consider all your options and make sure you are doing things right at the outset as it can be costly and much more complicated to arrange an equity release on Spanish property after completion. Loan to value ratios are generally lower than for a purchase. If you need more specific information then I need more specifics and we would need to have a chat for 45 minutes or so.

Rgds