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“Finance” Question: 

What do I need to know about a Spanish mortgage?

Answer:  Although many of us dream of owning Spanish property there comes a financial reality check before we can make any commitment. One thing is finding the right property but the other is how to finance it? Many of us are concerned about purchasing property in a foreign Country and dealing with large sums of money in a currency we are not completely familiar with. 

Fortunately there are lots of financial advisors available that speak your language who can guide you every step of the way. Nowadays buying a property and organising finance is just as simple and straight forward as doing it in our own Country. With attractive Spanish mortgage rates available it has never been a better time to buy. 

Due to the successful Spanish property fairs held all over Europe, many of us understand the basics of property finance. The larger fairs have free seminars which enable us to speak and hear from some of the top financial experts in the Spanish property market. 

Funding the mortgage is one of the most important factors to consider and something the financial institutions will need lots of specific information on. At the moment non-residents can apply for a mortgage up to 80% of the value of the property and 100% for Spanish residents. This is provided that proof of income can be provided to ensure that the monthly mortgage payments can be repaid throughout the period of the mortgage. 

The self-employed will need to show proof of the last 2-3 years earnings. They may also want to know if you intend moving to Spain once the property is built and if it is possible to maintain the income levels you have sustained in your home country of residence. This is also something you will need to consider before making such a huge financial commitment. 

The financial institutions will also need to know about any debts you have and the equity you have in your current home (information about savings including the lasts six months of bank statements). They will also do a credit check on you to ensure that you do not owe large amounts of money elsewhere. 

With Spanish mortgages available to suit many individual circumstances it is a fairly simple procedure to complete an online form in principle. An answer is normally provided within 48 hours. 

A new law aimed at regulating the mortgage market is to be introduced in the first quarter of 2007. The new law will reduce the set-up costs associated with mortgages by cutting fees paid to Notaries and for registration. The law will also drop commission charges made by banks for early cancellation of a loan down to 0.5%.  With attractive mortgage rates available it makes sense to find out more information on your current financial situation to see if you really can afford that dream home in Spain.

Question:  What do I need to know about Spanish property payments?

Answer:  When you are buying a high value asset in a foreign country you need to be aware that international currency fluctuates and this can have a massive effect on the final price that you have to pay.

Buying Spanish property is no different and you need to be aware that if you have to transfer large sums of money then it is not always a good idea to just make the transfer from your local bank. 

Many home buyers constantly check the foreign currency markets and try and seal the price when it is at the most advantageous to them. That's fine if you are well conversed with International currency trends, but what about the rest of us that still want to get the best deal when buying property in Spain? How can we ensure that we are getting the best that the currency market has to offer when transferring large sums of pound sterling into Euros? 

One of the quickest ways is to simply join one of the online Forex trading web sites that specialise in overseas property purchasing. Once you have logged in your can check the trend for the currency of your home Country against the Euro. 

This will immediately inform you how volatile the rate has been or if the recent history has been reasonably steady. In recent years the Euro has been fairly settled compared to a few years ago when it was difficult to read the markets to try and find out the very best time to transfer large amounts of money in your own currency over to Spain. 

Fortunately there are some very professional services available that can provide some excellent advice and support when it comes to buying property in Spain. These people know the markets so will be there to provide you with specific guidance on your financial transfers. The final decision will always be yours though it’s very comforting to know that there is a personal broker available who you can call during weekdays for an up to date market check. 

You can of course do this yourself if you wanted although it is suggested you at least contact the professionals first before you transfer any large amounts of money. Just one quick telephone call to a currency exchange rate broker can save you thousands on your Spanish property purchase.