# Mortgage from a Spanish Bank for a Self Employed Brit (living in UK)



## nimtree (Sep 29, 2015)

Hi,

I have a limited company in UK and UK banks do not provide mortgages to self employed people to buy a house in UK, unless they are able to provide 3 annual returns.

a) Is there such condition in Spain / with Spanish bank?

b) What are the typical interest rates for 5-10 yr mortgages.

c) Is it easier to move to Spain first and then get a mortgage from a Spanish bank?

d) Any disadvantages of buying for 100% cash (if I decide to) ?

Thanks in advance!


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## Guest (Oct 23, 2015)

nimtree said:


> Hi,
> 
> I have a limited company in UK and UK banks do not provide mortgages to self employed people to buy a house in UK, unless they are able to provide 3 annual returns.
> 
> ...


The same as UK. If you have your own business in Spain and you want a mortgage you need to provide three years of accountancy and bank statements.

I just got a mortgage for a house and the internet rate was less than 2% for a ten year agreement.

If you move to Spain its no easier than staying in UK. The only benefit of coming to Spain would be building up a relationship with the bank manager. 

No disadvantages in paying cash for a property just make sure you do your homework as it will be very difficult to sell if you change your mind.


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## nimtree (Sep 29, 2015)

Thanks for the response.

Wow, the interest rates are very attractive, shame I wont be able to get a mortgage for 3 years though.

I don't want to buy a huge property, just a 2 bed apartment with pool and near the beach will be great. Realistically not more then GBP 65000 in Malaga area. Does that sound achievable?


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## Williams2 (Sep 15, 2013)

nimtree said:


> Hi,
> 
> I have a limited company in UK and UK banks do not provide mortgages to self employed people to buy a house in UK, unless they are able to provide 3 annual returns.
> 
> ...



After the subprime crisis of 2008, Banks and other lenders have been more
stringent, as regards the affordability of borrowers to pay off the mortgage.
As this affected much of Western Europe as well as the UK, you certainly
won't find any lenders prepared to consider a 100 per cent mortgages 
where the borrower just pays off the interest any more.
Even normal mortgages where your paying off 90 to 95 percent of the
loan, will rarely be extended to Contractors, the Self Employed, Ltd company
startups, etc.

So Self employed people, those in contract jobs etc, will always find it difficult
to get a mortgage and the only way round it is to go permanent, to make
yourself eligible for a mortgage. Which is what most Contractors and the
Self employed do - that is return to permanent work to secure the mortgage offer.

What you do after that, once you have secured the mortgage is entirely up
to you. If permanent work is not for you and you would rather return to
Contract, Self Employed or Limited company work, then that's your choice. 
The bank simply doesn't care what form of employment you follow after you got
your mortgage, secured the house on the mortgage and start making your
monthly payments on the mortgage.


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## nimtree (Sep 29, 2015)

Williams2 said:


> After the subprime crisis of 2008, Banks and other lenders have been more
> stringent, as regards the affordability of borrowers to pay off the mortgage.
> As this affected much of Western Europe as well as the UK, you certainly
> won't find any lenders prepared to consider a 100 per cent mortgages
> ...


Thats a great solution, never thought about it that way , Thank you!

I take it 3 months of permanent employment is long enough to secure a mortgage, for most banks?


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## Williams2 (Sep 15, 2013)

nimtree said:


> Thats a great solution, never thought about it that way , Thank you!
> 
> I take it 3 months of permanent employment is long enough to secure a mortgage, for most banks?


No - the banks like to see at least 12 months permanent employment, 3 months employment
implies that you failed the probationary period.
As you know it takes at least 6 months to pass your probationary period for any
permanent job in the UK or the rest of Europe.
Twelve months permanent employment or more shows that you secured your job.


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## CerberusRogue (Oct 24, 2015)

nimtree said:


> Hi,
> 
> I have a limited company in UK and UK banks do not provide mortgages to self employed people to buy a house in UK, unless they are able to provide 3 annual returns.
> 
> ...




Hi,

It's actually a myth that a UK bank won't give you a mortgage. They won't on the high street but via a broker they will.

I switched to a limited company a couple of years ago. 6 months in, and with no company accounts etc. I got a 1.84% 2 hear fixed term repayment mortgage with the Halifax via a broker. Nothing dodgy, no strings, no crazy clauses etc. I just paid the broker £600 and he did all the work.

PM me for details if you are interested, or look up Ken James at Freelancer Financials (tell him Daniel referred you!). He has reviews in various contractor forums.

He brokers a deal, you then deal with the bank direct.


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## Madge67 (Jan 23, 2015)

Hey Nimtree, did u manage to move forward with this. We are looking to do the same, bank repo, 100% finance and are self employed so really interested to hear how you are getting on


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