Late starter for a Spanish mortgage

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24 Mar 2017 10:15 by frankg Star rating. 9 posts Send private message

Hi all

I've been looking at property for sale in Mallorca. I'm 64 in just over a months time, due to retire at 65 but am thinking of staying on for 2 more years....retiring at 67.

What are the options for me to obtain a Spanish mortgage on a property costing a maximum of 150 000 euros...or is it even possible at my age?

 

Thanks in advance

Frank

 


This message was last edited by frankg on 24/03/2017.



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24 Mar 2017 10:50 by TimMHI Star rating in San Javier. 9 posts Send private message

TimMHI´s avatar

Hi Frank,

most spanish banks cap the age at term to 70 years old, but one or two will allow you to borrow until aged 75, so in your case a 10 year mortgage would be possible, subject to you meeting the banks affordability criteria.

Feel free to contact me if you need any more help.

 


This message was last edited by TimMHI on 24/03/2017.

_______________________
www.themhigroup.com - mortgages arranged worldwide including the UK



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24 Mar 2017 11:37 by windtalker Star rating. 1588 posts Send private message

The  monthly repayments on  €150,000 would be astronomical even if you could get one...you can use the mortgage calculated repayments advise freely available on the net .Why not just rent it will come to a fraction of the cost of buying.

 


 


This message was last edited by windtalker on 24/03/2017.



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24 Mar 2017 12:01 by frankg Star rating. 9 posts Send private message

Thanks for your replies...The 150 000 euros is the maximum cost of a property.the mortgage would be around 85000.





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24 Mar 2017 12:31 by TimMHI Star rating in San Javier. 9 posts Send private message

TimMHI´s avatar

A fixed rate mortgage for 10 years, 85.000 capital borrowed would be around 800€/m.



_______________________
www.themhigroup.com - mortgages arranged worldwide including the UK



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24 Mar 2017 12:58 by frankg Star rating. 9 posts Send private message

24 Mar 2017 13:27 by hosilverlining Star rating in Property owner in Gr.... 173 posts Send private message

Hello Frank,

Before you consider a mortgage, make sure you obtain competent advice about Spanish mortgage law, which is completely different to UK law.  Any changes to a mortgage can be very costly, because they have to be noted at the land registry, so if your situation changes in the next few years you may find it difficult or costly to make adjustments to your mortgage.  Details of your mortgage are included in the deed of purchase so it's never as simple as negotiating with your bank.  Do it if it works for you, but make sure you know exactly what your rights are over the full length of the mortgage term, and what terms and conditions you are signing up for.  For example I have known it cost 1100 euros to make an amendment to the mortgage.

Best wishes.

 





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24 Mar 2017 13:58 by frankg Star rating. 9 posts Send private message

Thanks Hosilverlaning.....yes that's good advice....the other option is to save up for longer and buy outright. :)





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24 Mar 2017 15:57 by mariadecastro Star rating in Algeciras (Cadiz). 9208 posts Send private message

Legal Questions? Speak to Maria Direct

Good advise Hosilverlining!

The goodpart is that Finance/Mortagge Consumers rights are being more and more reinforced in Spain through law and  through Court Decissions.

But... of course, a legal eye is always a good investment as there is a lot to save !

Main aspects to be checked when hiring a mortgage:

- Mortgage deed related expenses

- Ordinary interests index

- Delay interests

- Payment default commissions

- Anticipated enforcement after default

- Related insurances

- Property valuation

- (....)



_______________________

Maria L. de Castro, JD, MA

Lawyer

Director www.costaluzlawyers.es

El blog de Maria



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25 Mar 2017 12:45 by crofter Star rating. 7 posts Send private message

Before you consider buying a property in Spain have a good look at the inheritance tax rules and how they would affect you . I believe it is better to buy in Portugal their tax laws are different especially at your age.





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07 Oct 2017 14:25 by chazym26 Star rating. 1 posts Send private message

Hi guys, im 42 and moving to spain with my family. I will be fully employed with the company I am currently with. They will ensure that any banks or authorities are satisfied that my contract is permanent and what my salary level is. I will have a spanish adjusted salary, not an expat salary as this move is an emiigration. If we were to buy a house for 250,000 and lend 160k-180k on a repayment mortgage over 20-25 years, what would be the ball park monthly repayments? Thanks!





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07 Oct 2017 16:57 by DuncanThickett Star rating. 80 posts Send private message

That’s absolutely great, guaranteed salary ‘permanent’ for 25 years, providing your employer does not go bankrupt. Hope they’re not an airline.

About 1,000 per month.



_______________________
Justice? - You get justice in the next world. In this one you have the law.



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07 Oct 2017 18:02 by marcbernard Star rating in Marina Alta; Alicant.... 245 posts Send private message

Presumably you will be borrowing the money, not lending it!





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07 Oct 2017 18:14 by windtalker Star rating. 1588 posts Send private message

Why buy a €250,000 property in your case at €1,100 per month ...when you can rent it for around €600.00 per month and when you want to move on you... just hand the keys back to to landlord... Its a different story when you try sell a property anywhere in spain...I think it is better if you rent for a couple of year's before you even think about buying .

 


 


This message was last edited by windtalker on 07/10/2017.



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07 Oct 2017 20:28 by DuncanThickett Star rating. 80 posts Send private message

I tend to agree with windtalker  why take the risks, worry and expense to just end up with a near worthless pile of Spanish bricks, like most of us already own.



_______________________
Justice? - You get justice in the next world. In this one you have the law.



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07 Oct 2017 21:36 by Jarvi Star rating in Halifax UK and Sucin.... 695 posts Send private message

Hi Frank

I agree with both windtalker and Duncan, regarding renting rather than buying.

There are so many pitfalls to getting a mortgage. Luckily I paid mine off within 7 years after taking it out for a 15 year term. One of the things that some of the banks insist on is having their life insurance policy. Mine was costing me 90 euros a month!

Also there is the inheritence element of the property whereby you will end up paying inheritence tax on it when you die, regardless of your worth.





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09 Oct 2017 08:48 by frankg Star rating. 9 posts Send private message

Hi All

We have been renting for some years now, 4 in our current flat, and have decided to continue renting rather than buy.

As has been said, why bother landing ourselves with a large mortgage and all the problems that can go with it !

We have just signed another 3 year contract on our flat :)

Frank

 





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