Spanish Mortgage
Designed for permanent and holiday homes
Your Spanish property may be repossessed if you do not keep up repayments on a mortgage or other loan secured on it
Being just a short flight from the UK many people find that Spain is the ideal location for either a short break or as a longer term getaway. However when it comes to buying a Spanish property, it's easy to be put off by the difficulties of organising a mortgage using an overseas bank.
With the Spanish Mortgage you can arrange finance to purchase property in Spain, all with the reassurance that comes from a name you trust.
The residential mortgage is ideal if you're planning to buy an existing property as your permanent or holiday home. The property must be fully constructed, structurally sound and ready for occupation.
| Key information | |
|---|---|
| Minimum loan amount | €100,000 |
| Minimum loan term | 3 years |
| Maximum loan term | 25 years (5 years interest only) |
| Minimum age at start | 18 years of age |
| Maximum age at expiry | 65 year of age (70 years of age may be considered) |
| Maximum Loan to Value (LTV) | 55% of the purchase price or valuation of the Spanish property, whichever is lower (50% for interest only mortgages) |
| Currency options | Euro |
| What you can borrow | We assess every application on individual affordability. When we calculate affordability, we consider your 'net disposable income' (NDI) This is your net monthly income less long term commitments Long term commitments include:
|
- Euro variable-rate mortgage rates
- Euro fixed-rate mortgage rates
- Residential mortgage charges
- Other charges
Euro variable-rate mortgage rates
| Current rate | Initial rate | Overall cost for comparison | Early repayment charge (payable on capital sum repaid early) |
|---|---|---|---|
| 3 month Euro LIBOR + 2.00% | 3.67% | 3.90% APR | None |
CHANGES IN THE EXCHANGE RATE MAY INCREASE THE STERLING EQUIVALENT OF YOUR DEBT. PLEASE NOTE THAT FOR MORTGAGES WITH INTEREST PAYMENTS BASED UPON VARIABLE RATE TERMS THERE IS A RISK THAT THE TOTAL SUM PAYABLE UNDER YOUR MORTGAGE MAY INCREASE SIGNIFICANTLY AS RATES RISE.
Updated: 4th November 2009
Euro fixed-rate mortgage rates
| Initial rate | Overall cost for comparison | Early repayment charge (payable on capital sum repaid early) |
|---|---|---|
| 1-year Euro fixed-rate capital & interest repayment | ||
| 4.22% | 4.50% APR | 1% |
CHANGES IN THE EXCHANGE RATE MAY INCREASE THE STERLING EQUIVALENT OF YOUR DEBT.
Updated: 4th November 2009
Residential mortgage charges
Valuation Fee for residential Mortgage
| Property value | Fee |
|---|---|
| Up to €250,000 | £300 |
| €250,001 to €500,000 | £500 |
| €500,001 to €1,000,000 | £850 |
| €1,000,001 to €1,500,000 | £1,250 |
| €1,500,001 to €5,000,000 | 0.15% of the property value - the Bank will require two independent valuations to be undertaken |
| Over €5,000,000 | Negotiated on individual basis - the Bank will require two independent valuations to be undertaken |
Arrangement Fee
| Fee |
|---|
| 1% of the loan amount, minimum €1,000 (no maximum) |
Commitment fee
| Fee |
|---|
| 0.5% of the loan amount, to be paid in advance of drawdown |
Other charges
| Description | Fee |
|---|---|
| Drawdown of Loan* | €75 |
| Missed/Late Payment* | £50/€75 |
| Fixed Rate Reservation | 0.15% of loan amount, minimum €500 |
| Change to repayment method (i.e. capital holiday) | £50/€75 |
| Duplicate statements | £12/€18 per statment |
| Early redemption charge | Per individual loan agreement |
| Photocopying of Deeds | £15/€22.50 per document |
| Default Notice | £30/€45 |
| Switching interest rates | £50/€75 |
| Letter confirming year end balance | Nil |
| Capital reductions | Nil |
* Unless agreed otherwise, these fees will be deducted directly from your mortgage account on which interest will occur.
Your bank may not accept an instruction to make euro payments from a sterling bank account. They may also charge you a fee for each payment instruction made. Please check with your bank for details of any fees you may incur.
Updated: 4th November 2009
The Spanish Mortgage is provided by The Royal Bank of Scotland plc (RBS plc) trading as NatWest
Apply now
Call us on:
+44(0) 1624 637610
Lines are open: Mon to Fri
9.00am - 5.00pm
(excluding public holidays).
Calls may be recorded.