Overseas Mortgages don't work in exactly the same way that British Mortgages do.
For example, in Spain, payment to your Spanish Mortgage will be in Euros. This is affected by any exchange rate changes between the Pound and the Euro and as such your monthly payment will always differ slightly. Whereas British mortgage rates are based on the Bank of England's base rate, a Spanish Mortgage is subject to the Euribor. This is the benchmark rate for many of the European nations.
In most circumstances a 20%-30% deposit is required. The amount that you can borrow is not based on multiples of your income like it is in Britain, but on your ability to make the monthly mortgage repayments. Spanish lenders request that the monthly payments do not exceed 35% of your monthly disposable income. Therefore, lenders will expect to see evidence of your income and outgoings before making a decision on your application.
At Ecosse International Properties our mortgage partners are able to assist you with this issue is it becomes problematic.
If it seems a little daunting, our mortgage associates would be happy to guide you through the process and explain other differences such as Taxes on property, type of mortgages available and the deposit required. And with agencies with a number of Lenders we are sure we can find the right mortgage for you.
For details on mortgage criteria in a specific Overseas country contact us and we will be more than happy to advise you.
For example, in Spain, payment to your Spanish Mortgage will be in Euros. This is affected by any exchange rate changes between the Pound and the Euro and as such your monthly payment will always differ slightly. Whereas British mortgage rates are based on the Bank of England's base rate, a Spanish Mortgage is subject to the Euribor. This is the benchmark rate for many of the European nations.
In most circumstances a 20%-30% deposit is required. The amount that you can borrow is not based on multiples of your income like it is in Britain, but on your ability to make the monthly mortgage repayments. Spanish lenders request that the monthly payments do not exceed 35% of your monthly disposable income. Therefore, lenders will expect to see evidence of your income and outgoings before making a decision on your application.
At Ecosse International Properties our mortgage partners are able to assist you with this issue is it becomes problematic.
If it seems a little daunting, our mortgage associates would be happy to guide you through the process and explain other differences such as Taxes on property, type of mortgages available and the deposit required. And with agencies with a number of Lenders we are sure we can find the right mortgage for you.
For details on mortgage criteria in a specific Overseas country contact us and we will be more than happy to advise you.
