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100% LTV Spanish Mortgage for British National

6th September 2022
ASSOCIATE DIRECTOR

Monica Bisci

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100% LTV Spanish Mortgage
Monica Bisci
ASSOCIATE DIRECTOR

Monica Bisci

Key Figures: 

  • Client: British National & Resident 
  • Property type: Holiday Villa
  • Property Value: €6,600,000
  • Loan Amount: €6,600,000
  • LTV: 100% 
  • AUM: €2,300,000
  • Interest Rate: 1.9% fixed rate, 5-year interest only 

Given the climate, culture and lifestyle Spain offers, Andalusia and the Balearics Islands are popular with UK investors, particularly those looking for holiday property in Europe. Prime property is often cheaper than that in neighbouring France but with all the same amenities. What is more, there are very few restrictions on property ownership in Spain, although tax implications and your ability to own in the country should always be explored up front.

According to the Spanish Association of Notairies, Spanish home sales in the first quarter of 2022 were the highest since 2007, with the property market of the Spanish islands outperforming the coastal markets. Similarly, the estate agent Engel & Völkers has reported strong demand amongst international buyers as the Balearic Islands remain a safe haven for real estate investments. 

In this case, we were approached by a HNW British National who was looking to acquire a spectacular family holiday home in Ibiza. Located in a prestigious residential area, the property in question was worth €6.6million, and the client was looking to borrow as much as possible. 

When it comes securing to a Spanish mortgage as a UK resident, not all Spanish banks and lenders will offer the most flexible or competitive mortgages to you. In fact, Spanish lenders will most likely view you in a very "black and white" manner assessing your income first and foremost. Just like for other non-residents, if you are a UK resident looking for a Spanish mortgage, Enness will be able to connect you with international and alternative lenders who will consider more than just your income and look at the other elements of your background. Private banks, in particular, are better able to offer competitive Spanish mortgages to UK residents, given that they are more flexible with regard to assessing borrower risk.

In this case, we connected the client with an international private bank that was able to offer a 100% LTV (loan-to-value) Spanish mortgage. With the client placing €2.3million as assets under management, the private bank offered a competitive fixed rate of 1.9% with a 5-year interest-only term. 

If you are considering buying Spanish property and want to learn more about how Enness can help you, get in touch. The team will be delighted to talk you through your options and answer any questions you have.