How to get a mortgage in Tenerife
When buying property in Tenerife you may need to arrange a Tenerife mortgage to help you fund your purchase. Our dedicated team of sales executive can help you to get a mortgage here in a transparent and simple method that allows you to understand the process every step of the way. As we work with the majority of Spanish banks our staff can arrange a mortgage to suit your needs.
Recent market changes have made it easier than ever to buy a property in Tenerife, despite the economy. Whereas previously an aspiring buyer could just about scrape together sixty percent of the cost of a property from mortgages, nowadays lenders are putting together financial packages that mean almost anyone can benefit from property investment.
What this means for you, the borrower, is that mortgage lenders are now prepared to lend more, over a longer time. Flexibility has improved in many ways. Lenders will now take a broader view of a client’s assets, for instance allowing an existing owner to purchase a second property even before the first is sold, and making this affordable by offering an interest-only solution.
Arranging any mortgage abroad can be a daunting prospect and Spain is certainly no exception. For the uninitiated, it’s difficult to know where to start and whether information you see or receive is correct.
This is complicated by the fact that banks lending in Spain do not always offer the same conditions to clients, even if they have similar profiles. The mortgage market in Spain is quite traditional in the sense that having the right contacts is crucial if you want to get the best deals.
Our Mission Is To Help Our Clients Secure A Mortgage In Tenerife As Quickly And Easily As Possible. Our Team Of Financial Consultants Offers You A Mortgage Advice Service Free Of Charge.
We will easily guide you through the complex process of mortgage financing in Spain explaining how much you can borrow from a Spanish Bank, how much it will cost you, the cash deposit needed, and exactly what documents you will need.
Being fully prepared financially before visiting Tenerife will enable you to negotiate with sellers in the knowledge you are in the strongest position to buy and have the ability to move quickly.
Non-resident mortgages (60-70%) – for non-residents who pay their taxes outside Spain, the maximum mortgage amount is 70% of the purchase price (or valuation if lower), but some banks have a maximum amount of 60%. For fiscal residents who pay Spanish taxes, the maximum mortgage is 80%.
Mortgages for retirees – If you are over age 60 and in receipt of a pension, you can still have the mortgage in your own name. It is also possible to appoint a guarantor such as a family member to secure the borrowing, which can have potential inheritance tax benefits if they are also a part-owner in the property.
Construction mortgages – for those wishing to build their own homes, banks offer construction mortgages. These are complicated to explain and you should definitely speak to a broker, but broadly-speaking you can potentially borrow 60-70% of the land and construction costs combined.
Commercial – If you are buying a property for commercial use, such as a restaurant or a shop, for example, the maximum mortgage is 50% of the price (or valuation if lower). If you intend to run a business the lenders will ask for business plans and, where applicable, accounts for any previous business operating at the premises, as well as what previous experience you have had running a similar business.
Mortgage Pre-Approval Makes You A More Attractive Buyer
I´m sure that you are aware that there are two types of markets: buyer’s markets and seller’s markets. In a buyer’s market, inventory is high and demand is low and you have a lot more lee-way in terms of the purchasing process. In a seller’s market, however, inventory is low and demand is high, and buyers need any advantage they can get on their side if they want to stand out from the competition. If you’re looking to buy in a seller’s market, then one of the advantages that you’re definitely going to want is a mortgage pre-approval. You may be asking yourself ´why is that?´. Let me explain – if there are two buyers making an asking price offer on a home and only one has a mortgage pre-approval, who do you think the seller is going to be more likely to go with? In almost all cases it’s going to be the buyer with a pre-approval, since there’s a lot less risk to the seller of the deal falling through due to lack of available financing.
Buying A Property In Tenerife, here are some of the best locations when buying property In Tenerife.
Tenerife is blessed with some amazing locations, choosing the right location for yourself is where any property search should begin. When buying a property in Tenerife the right area can make a huge difference in the way in which you want to live your life on this fantastic island. In this article, we take a look at the best locations to buy a property in Tenerife. Read more