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What is the cost of arranging a mortgage
?
Unless you are purchasing a property with a mortgage already
in place, [see above] the cost to arrange a mortgage will
be around 1% to 1.5% of the amount advanced.
How much can I borrow ?
As a general guide a non-resident will be able to borrow
around 60% of the valuation of the property. Residents can
borrow around 80% of the valuation.
Should I have a euro mortgage ?
If you borrow in a currency that does not have a fixed
value against the euro e.g. sterling, currency fluctuation
could make your borrowing more expensive or less expensive
depending on the exchange rate at the time. Exclusive Marbella
would advise you to borrow in the currency from which you
derive most of your income.
What interest rate will I pay ?
Interest rates will again depend on the currency in which
you choose to borrow. Interest rates for mortgages in euros
are based on the Euro Interbank Offered Rate, (EURIBOR).
The lenders rate will be a margin over Euribor, generally
Euribor + 1.25%, but certain lenders may fluctuate on this.
Fixed rate mortgages are available at slightly higher interest
rates. For more information on EURIBOR, go to http://www.euribor.org
.
How often are rates reviewed ?
Usually once a year.
What is the cost of early repayment
of the mortgage?
From zero to 1% depending on the type of loan. Some lenders
only charge for cancellation in the first five years, others
make no charge at all. It is important to choose your lender
carefully if you intend to repay your loan early.
What information will the lender require
?
Banks vary in the amount of information they require. As
a general guide you can be expected to be asked for the
following:
- Last 3 wage/ salary slips.
- Last Income Tax declaration/P60 in
the UK, or evidence of latest annual tax declaration.
- Copies of your current bank statements
covering the last six months.
- Reference letter from your employer
confirming date of employment and proof of income (not
always essential but helpful, especially if you want to
achieve the maximum amount of borrowing).
- Copy of passport/residencia.
If you are self employed:
- Latest Income Tax declaration.
.
- Copies of the accounts for the last
two or three years.
- Chartered Accountants Company report,
confirming your annual personal drawings from the company.
- Personal bank statements.
- Bank reference letter.
- Copy of passport/residencia.
What about bank charges ?
Bank charges for maintaining an account and commissions
for transferring money, vary considerably from bank to bank.
Some provide good online banking, which can be useful for
transferring funds and paying bills in absentia.
Which lender should I choose ?
Exclusive Marbella S.L. offer a mortgage advisory service
which is offered free of charge to our clients. Our independent
mortgage advisor is well know and respected by the banks
in the area. Our ability to introduce you to the relevant
bank with all the necessary paperwork completed will speed
up the mortgage process to a successful conclusion.
Any questions?
If you require any further information or have any questions,
please do not hesitate to contact us at: - mortgage@exclusive-marbella.com
Exclusive Estates Marbella S.L. for an efficient,
professional and reliable service.
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