Multi-currency mortgages in Spain:

A multi currency mortgage is flexible and attractive solution for property purchases or reformation: It allows the client to choose the currency with the lowest interest rate. Saving huge amounts on interest payments. Mortgages in Spain have for along time been lower than UK mortgages and it is normally better to take a spanish mortgage rather than a UK one.
Being able to choose between the Swiss franc or the Japanese Yen to the euro can have amazing savings.
With a Yen mortgage for example. The first two years are interest only: 300,000€ mortgage is less than 500€ per month interest rate of less than 2%. The cheapest spanish mortgages in Spain.

Multi currency mortgage conditions.

Up to 88% of the purchase price with a Spanish mortgage (maximum 80% of the valuation)
Minimum amount to borrow 150,000 Euros with a multi currency mortgage
Maximum term 30 years
Quarterly or half yearly payments
The mortgage can be converted into another currency (including Euros) every three months without any additional costs.
You can choose constant or decreasing payments system
Currency exchange commission for repayments: 0.30%
Interest only periods available
Multicurrency Current and savings accounts and insurance against currency fluctuations.
Confidence of over 1,000 branches throughout Spain

What you need:
Buyers must qualify for the loan, proving they have sufficient income to afford the monthly payments (max 40% of net official income), with the following documents:

Passports
NIE numbers
Private purchase contract of property
Signed authorisation for personal data processing and declaration of assets
Bank statements
Salary slips for last 3 months
Proof of official income depending on what country (P60, Tax return….)
Experian report, for UK residents only

Normal euro Interest only mortgages are becoming very popular in Spain with a lot of banks offering up to 30 years interest only mortgages. The calculation on our property display page is based on a 30% deposit with a term of 30 years and the mortgage rate at 2%. The vast majority of Spanish banks will only lend 70% of the purchase price and will only lend up to the age of 70, which is why our calculations are at that figure. The other point to remember is that a new build property will normally always gain a better valuation than a resale making it possible to obtain 80 or even 90% mortgage in some cases. We have actually sold new houses where the purchaser has only paid a 3,000€ deposit and the rest has been financed by the bank! No matter what your circumstances are we can normally obtain mortgages through our numerous financial contacts.

There are several types of mortgage offers in Spain at the moment being advertised on the local radios here, even 100% mortgages. Be very careful! The banks here will not give 100% mortgages, these firms are offering this based on an overvaluation of the property and these 100% mortgages are available on a very limited number of houses. A few banks from time to time will have promotional offers and offer 80% and you need to shop around for the best deal. Some companies offering great Spanish mortgage rates also ask for an up front payment! I leave you to make up your own mind there. If you would like a Spanish mortgage quotation of any kind please mail us.

Some useful spanish bank web sites:

www.bancaja.es

Caja Madrid is Spain's second largest savings bank after La Caixa.

During 2005 Caja Madrid contacted Euroresident to discuss with us the needs and preferences of foreign resident and non-resident property owners or buyers in Spain, in order to contrast what our visitors tell us about their experience with Spanish banks with the opinions their international team of financial advisors had formed over the past few years. The result of an extensive number of meetings and on-going discussions is a collaboration between Caja Madrid and Euroresident aimed at providing the highest possible level of personalised services and professional expertise to non-Spanish property-buyers or property owners in Spain. This includes, but is not limited to, excellent mortgage deals.

Caja Madrid has a network of 1917 offices across the whole of Spain. Based in Madrid, it has more than 12,000 staff, over 300 years experience and more than 6 million clients.

This year Caja Madrid has opened 28 new branches along the Spanish coast providing specialist services in English plus at least one other European language to non-Spanish speaking Euro residents.

Caja Madrid offers the following special services to foreign clients:
- Native language speaking financial advisers
- Mortgages: up to 80% of the investment and repayment periods of up to 25 - 30 years.
- Comprehensive home insurance packages.
- Comprehensive health care packages.
- A free debit service to ensure your bills are always paid on time.
- Free accident insurance cover of 9000 on salaries and pensions paid into your account
- An advanced online banking system enabling clients to:
  - Transfer money to and from accounts abroad
  - Buy and sell shares and track their progress
  - Receive up to the minute statements
  - Carry out payment of bills, monthly contributions and other payments
- As well as Credit cards, Personal loans, Fixed-term deposits, Investment funds, Pension plans and comprehensive Personal and Business banking
Caja Murcia, as its name suggests, specializes in the Murcian region. The Murcian Savings Bank prides itself on offering specific services and products to the large community of non-Spanish home owners who own property on the Costa Calida, La Manga, Torrevieja etc.

Cajamurcia offers the following special services to foreign clients:
- Euroresident account (nothing to do with us!), with preferential interest rates. Residents and non-residents can have this account
- Mas Amigos Card: Debit financial card intended for members of the non-profit Association MÁS AMIGOS, formed by more than 8,000 Nordic families, living along the Spanish Mediterranean coast, from La Manga to Denia. The Mas Amigos headquarters are in Stockholm and Torrevieja and their raison-d'être is to provide information, advisory services, entertainment and other services of interest to the Nordic community.
- Mortgages: Cajamurcia finances up to 70% houses official price (i.e. the price which appears on the deeds) and mortgages have a maximum of 15 to 20 years
- House insurance.
Caja Murcia is 19th in the ranking of Spin's 51 savings banks, in terms of business volume. Because it operates in an area with a high percentage of ex pat residents, the bank enjoys a good reputation for understanding and answering to the needs of non-Spanish property owners in Spain. Caja Murcia has 1,950 employees and more than 400 branches between Castellon and Almeria. The savings bank recently opened a branch in London.
www.bankinter.com

Bank inter Mortgages can be organized either online, via the telephone or in person at one of their many Branches.

Bank inter offer three main types of Mortgage, Fixed Rate Mortgage, Mixed Rate Mortgage and a Variable Rate Mortgage.

All of the Mortgages with Bank inter require roughly the same criteria to be met.

They require that the amount of the loan does not exceed 80% of its value if the property is to be used as your main residence and up to 55% of its value if the property is to be used as a second home or investment property.

Bank inter Mortgages need to be for between 30,050 Euros and 601,000 Euros. For larger amounts you will probably be referred to the Private Banking arm.

The term of the loan must be greater than 3 years but no more than 25 years although in some cases they may allow terms of up to 30 years.

You are required to make payments either monthly, quarterly or bi monthly and you are aloud to make over payments providing that the amount you wish to overpay is greater than 3000 euros.

To compliment the Bank inter Mortgage you can arrange Mortgage Protection Insurance through them.

This Insurance is arranged through General Electric Financial Insurance and they pay out up to a maximum of 1352.28 EUR per month and for up to 12 months consecutive. The cost of this Bank inter Mortgage Protection Insurance is around 1.1% of the value of the loan.
http://portal1.lacaixa.es

La Caixa is Spain's biggest savings bank and although it is has its headquarters in Barcelona ("Caixa" is the catalan translation of "Caja"), the Caixa has 4732 branches all over Spain and over 23.000 employees.

The Caixa has one of the best online banking facilities available in Spain and non-Spanish speakers have a special interface so that they can perform bank operations from home, in Spain or abroad, in their own language.The online banking facility is also available in French, German, Italian and Portuguese which gives users an indication of the specialized service la Caixa offers to its foreign customers.

La Caixa works closely with immigrant groups in Spain and finance social integration projects in Spain to improve the quality of life of these groups. Since 1997 the bank has donated 7.2 million euros to development projects in Latin America and Africa. The Caixa also offers a special card enabling Latin american and North African immigrants to transfer money to their native country directly from a cash point.

La Caixa Mortgages are available to both Residents and Non Residents of Spain.

La Caixa are one of Spain's largest Savings Banks with a huge number of Branches all over Spain.

You will find that in the main Ex Pat areas, ie the Costas, that most if not all the Staff at La Caixa Branches are able to speak a high level of English.

Below are some brief details about the many different mortgages that La Caixa Bank offer.

La Caixa Open Mortgage

Allows you to choose when to repay the loan along with flexible terms for payments and fixing interest rates at various times throughout the loan.

The open Mortgage gives you peace of mind and the ability to adapt to the many changes that can and do occur throughout your life.

For example you may need to buy a new car, you may start or family or simply wish to extend your current home. The open mortgage can accommodate such changes.

La Caixa Young Persons Mortgage

Opened with exclusive conditions for young people of up to 30 years who wish to finance their first home. During the first six months you will enjoy a type of preferred and exclusive interest rate of 3.75% providing that you apply via the Internet.

La Caixa Mortgage for Building your own home.

La Caixa have a special mortgage product that can assist you when you are building your own home or adding an extension.

The difference with these loans are the terms by which you receive the money. For example if you are building your own home you will need chunks of money at various times throughout the project rather than just one, large sum at the start.

La Caixa Changing House Mortgage

With this mortgage you can now buy a new house without having to sell the present one with haste, because La Caixa will lend you up to 80% of the value of the new house and, in addition, they provide up to 80% of the value of your present house. Thus, you will the funds available to purchase your new home without selling the old house.
www.halifax.es

Halifax Spanish Mortgages are available through any of the Spanish Halifax branches that you will find in the main tourist resorts.

Generally mortgages for the Halifax in Spain are different from the ones in the UK in so much as they wont or cant offer the same products.

However, many terms that you will be accustomed to such as Fixed Rate mortgages etc can be arranged.
Before you take the plunge and obtain your Mortgage with the Halifax in Spain be sure to check out the pros and cons.

The obvious ones that we have thought about are that you are exposed to any change in the value of the Euro. On the plus side you can transfer money from the Halifax in the UK to the Halifax in Spain free of charge!

Below is a complete list of the branches of the Halifax in Spain together with some useful e-mail addresses.
You can also speak to someone in English the telephone number for the Halifax in Spain is 0034 902 310 100 (Monday to Friday from 8.00 AM to 15.00 PM)

The main branches listed have the following opening times.

Monday to Friday
From May 23rd to September 30th 8.00 am - 3.00 pm
From October 1st to May 22nd 9.00 am - 6.00 pm
And Fridays 8.00am-3.00pm

Halifax Madrid
Serrano, 59
28006 Madrid

Dr. Fleming, 36
28036 Madrid

Halifax Barcelona
Pº de Gracia, 97
08008 Barcelona

Halifax Seville
Martín Villa, 1-3
41003 Sevilla

Halifax Malaga
Alameda de Colón, 9
29001 Málaga
Calvario, 6

Halifax Marbella
Ricardo Sorianano
29600 Marbella
Bonanza, 60

Halifax Benlamadena
29631 Arroyo de la Miel
Benalmádena (Málaga)

Halifax Fuengirola
Héroes del Dos de Mayo, 2
29640 Fuengirola (Málaga) fuengirola@halifax.es
www.banesto.es

Banesto Bank Mortgages in Spain are on offer for both Residents and Non Residents alike.

Banesto Bank offers a full range of Mortgage products together with various policies and terms which can be used or implemented throughout the life of the loan. For example you can elect to miss payments if your circumstances change.

You can take out Banesto Mortgages on the house you want to live in, a holiday home or an investment property.

They will generally lend up to 80% of the value of the property that you are buying but the loan must not exceed 100% of the amount that you are paying. This can be slightly confusing but what it means is that if you are buying the house for ¬100,000 but it is worth ¬130,000 on appraisal then you can borrow 80% of ¬130,000 providing that the amount borrowed does not exceed the ¬100,000 that you are paying for it.

If the property is your second home you are only allowed to borrow up to 60% of its value.

The mortgages on offer with Banesto Bank are usually on offer with repayment terms of between 15 and 30 years and depending on your circumstances you may be able to make additional or partial payments.

You can also arrange finance with Banesto Bank for the construction of your own home or an extension to your existing one. These types of loan do need to be considered in isolation because each project requires the injection of funds at different times and there is no point paying interest on money that you have not used yet!

Please remember: Purchasing a property in Spain is totally different than purchasing in the UK. Verbal agreements will not reserve a property. The owners will only take the property off the market with a holding deposit..

These are only guidelines and have been gathered from years of experience. It is up to the individual to choose which way they proceed with their purchase and make sure any subject to clauses have been added to the contract before they agree to hand over any monies.

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