Help on mortgages and management

Hi there, I am looking to buy a villa in the cordoba region - specifically iznajar or around there next year.  I need to know who I can approach regarding a mortgage and also who to approach for management of the property when I'm not there.  I will only be there for a maximum of 90 days per year - can anyone help ?

You can approach any bank in Spain for a mortgage.

Banco Santander

Banco Bilbao Vizcaya Argentaria

CaixaBank

Banco Sabadell

Bankinter

Kutxabank

Abanca

Banca March

For management try the local ‘’Maria Mop’’ she will be the cheapest.

Hi Thanks for reply.  The information you get from these banks is always very vague.  you go on BBVA or banco santander, and yes they say they offer non-residents mortgages but I just don't have faith in that as they don't understand my situation 100%.  There is no-one to contact just mortgage calculators.  The question is would a bank in spain lend say 200k euros to a non-resident to let out a villa as a holiday let in the cordoba region.  Also googled 'maria mop' and couldn't find anything.  do they work in the cordoba region ? - because I bet they don't.  Most management companies operate on the costa del sol only, they won't go inland anymore than half hour.

Hello Catesby

I do not think any forum member will personally provide you with a mortgage or is likely to be a bank underwriter.

You are probably from the UK where things are more black and white than Spain. When in Spain you need to adapt your thinking and understanding to ‘’maybe, umm, could, might, perhaps, possibly’’ that is the culture.

There is usually a ‘’Maria Mop’’ in every part of Spain be it coast or inland.

Local Bank Manager

We used to have a mortgage advisor on here, Smiley, but he doesn't post any more. It may be worth hunting down some of his posts and seeing if he answers any messages you may send him.

Mark

Hi.  Yes any mortgage advice for my particular position would be most welcome.  That way I could make an informed decision on whether to go ahead with a mortgage.  I'll wait to see if I get any more bites on here and perhaps look 'Smiley' up.  

Hi Catesby I am not to sure how much you are looking at Borrowing...and if you are aware how Spanish Banks work when  giving you a mortgage offer firstly you need to have 10% of the total purchase price of the complete mortgage...and then what you will find is that the will only lend you approximately 60%of the agreed total price...so you are looking at finding 50% including your 10% legal fees  yourself....take a tip from some that has had a holiday home for the past 17 years....Don't factor in what you might get in renting out to holiday makers. 

Windy, that is sensible information and advice. I would go a step further, should anyone be buying a holiday home that needs to borrow money to fund it. They are just gambling on future personal income that usually has no guarantee. The job you have today maybe gone tomorrow (P&O Ferries) and all the redundancies in the financial crash of 2008. Voluntary repossessions almost wiped out the banking industry in Spain in 2008. Then holiday rental income, what if we have another COVID situation?

I can understand the need for many to borrow money for absolute essentials but not for luxuries.

Hi Windy, that is sound advice and I sort of reckoned on about the most investment from my part being about 50% of the villa price from previous research.  The issue is just getting the mortgage.

Er Kavanagh, I think you might be a tad pessimistic.  I am an investor, I have a portfolio here in England doing very well, and I am looking to invest in spain which I am sure is also a solid investment, there are always freak events that adjust the market but I certainly wouldn't say don't invest in something just because there maybe some freak event in ten years time, everything evens out (troughs and booms).  The holiday market in Spain has and always will be a very sound source of income, Andalucia is still a great place to buy a second property.  I would buy the property outright but would rather get a bank to lend and have a vested interest to minimise my exposure to risk.  That alongside with the fact I want to further invest here in England and not have to shell out so much in Spain just because I can't get a mortgage.

Hello Catesby

Not sure that’s a true definition of an investor. Using someone else’s money sounds more like a chancer who can’t afford to be an investor.

Sorry if that sounds harsh. In 2008 when it all went tits up, the greedy idiot banks lent shareholders funds to any chancer, and many were Brits borrowing on a dream, then they throw they keys in and go back to blighty waving goodbye ‘’catch me if you can’’. Of course the bank officials also did a runner.

Sorry Catesby but looking at Spain as an investment and for growth in property is a fast track to skid row.

Firstly, you would need about 14% on top of the price for taxes and other fees. That's money you'll never get back. Yes, loads of tourists who want villas and so on and will pay 300 or 400 euro a week in the peak periods. That's maybe a couple of months. Looking round here, rentals outside the peak periods are more like 300 to 400 euro a month. 

Property prices are going up but nowhere near the rates anywhere else. For example, chap up the road paid 650,000 euro for a very nice, 4 bed villa in its own grounds and swimming pool etc. He's just sold it for 400,000 euro. He said the cost of the upkeep of his pool was costing him more than he managed to get in rent.

Lower down the scale, chap opposite paid 230,000 for his 3 bed on a community. Just sold for 180,000 after 8 years. We have dozens of properties near us for rent and all are having to undercut each other. 

They do say the only way to leave Spain with a small fortune is to arrive with a big one.

Hi Catesby ...I didn't realise that you are a looking to invest  in Spanish property....I also have a portfolio of properties in the UK..I also own 2 properties in Spain ( for personal  and family  use only  )   ....I didn't buy these properties for a invest I bought them to use as holiday homes...what I will say to you is ...DO NOT BUY IN SPAIN AS A INVESTMENT...the property  market in Spain function's in a different way to the UK ..I will  try to explain in layman's terms..OK so you agree to buy a property for €100,000  then on top of that purchase price you pay a minimum of 12% buying fees including taxes and the likes so that brings you total purchase outlay up to €112,000 you now own the property...that's only worth  €100,000 ...3 years down the line  you decide to sell the property on ...it's going to cost you another  12% on top of your sale price to do this so I take you would at least want  you total outlay back which would be €124,000 to break even..this means  your property  would  need to have to increase in value  by €24,000 to do this ..and this is the reason you don't hear of any one  buying for investment..unless they are on place in the sun on the TV and wet themselves when being told that they could rent the property out that they bought for €85,000 for €1,000 per week by the local estate agent..LOL....beleave me this doesn't happen  good luck anyway  ...in the business  i am in we have a old saying that is think twice and part with your  money once. 

Thanks for those most valuable posts providing information  that's so hard to get otherwise.  What you see on the Internet is possibly always over positive.  So I'm glad you gave  it to me in black and white!!
 

Saying that I am not just looking to buy and sell in spain, I am looking to have a permanent holiday villa where I can spend my holiday and manage my portfolio over here. I would like it to provide an income though and not be too much of a burden.  A big concern was  managing it whilst I'm not there especially with a pool.  And especially in the rural areas I would want to buy.  

I suppose I was turning to Spain  again instead of investing here as the interest rate was creeping up which means leveraging less which is  not what I want to do as an investor of course.  Tough times ahead I suppose.  
 

I'm almost convinced not to invest in spain now after getting to know the harsh truth.  
 

Thanks for advice