Good news for homebuyers on the Costa del Sol, due to their greatly improved finances and growing demand for homes and financing al ike Spain’s banks are lending again. In addition, economists are forecasting that Spain will lead growth in the Eurozone over the next two years, with a projected rate of around 2%, which isn’t too far behind the UK at 2.7%.
When the global financial crisis truly hit home it affected the financial and real estate sector equally, resulting in a shortage of lending that especially affected first-time buyers trying to get on the property ladder. They, and other home buyers, will be pleased that the past year has seen a gradual return to businesses as usual broadening the market from cash buyers only to include a far wider potential buying public. “It’s good news for all involved, and a reflection that economic conditions are normalising,” says Massimo Filippa of Greenlife Estates.
It is also true that the banks will not be quite so profligate with their mortgages as they were in the past, and buyers must be prepared to qualify for a bank’s lending rules. For example, Sabadell is offering overseas buyers mortgages covering 70% of the property value over a maximum 30-year period, and at an interest rate fixed at 3%. This is only slightly higher than the Euribor official interest rate of 2.75%.
In general, to qualify for a bank mortgage buyers will need to demonstrate that they have an income of at least €2,000 monthly, pay a minimum of three utilities bills as standing orders through the bank in question and use it’s credit/debit card at least three times quarterly and buy the bank’s home and life insurance. But while conditions are a little more rigid than during the credit-fuelled boom, solid practice now prevails.
“Santander, ING and Deutsche Bank all have very competitive offers for first time buyers, with offers of 80% of the value and a reduced interest rate after the first year,” says Massimo Filippa, “application acceptance has also increased to 73%, which is excellent news for those looking to purchase a property in Marbella.”
The Greenlife Estates team welcome your visit: let us show you the kind of dream property you can purchase, plus we can advise you about the process and paperwork required for a Spanish bank mortgage, including the purchasing costs and procedures.