# Mortgage;



## richie3487 (Aug 19, 2007)

Hi all, have'nt been on for a while, been busy trying to reconstruct our life after leaving the army and moving to spain at the same time. So its been backwards and forwards to the UK non stop but things are starting to settle down. We have been scouring the area for our preffered house and now we think we've found it but i want to find out about residency, mortgages, rent to buy options

Can anyone give me a heads up on this,

Help!!

Richie,


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## Suenneil (Feb 17, 2009)

richie3487 said:


> Hi all, have'nt been on for a while, been busy trying to reconstruct our life after leaving the army and moving to spain at the same time. So its been backwards and forwards to the UK non stop but things are starting to settle down. We have been scouring the area for our preffered house and now we think we've found it but i want to find out about residency, mortgages, rent to buy options
> 
> Can anyone give me a heads up on this,
> 
> ...


Hi Richie, glad things are getting sorted!!

I think I take it you are here in spain now then ? are you renting at the moment whilst looking for something to buy ? With regards to mortgages its pretty difficult at the moment to give a definitive answer - as most of the banks arent lending as freely as they were! so your best bet would be to visit your bank in Spain, and a couple of other potential lenders to see what they are able to offer in terms of mortgages at the moment, and also what they would need from you in terms of proof of income, assets etc ..... to be honest its pretty pointless finding the house first in most cases - you need to know what you can borrow first. Also it will depend on where the property is, with campo properties (rustica) you will be limited to a maximum of 50% mortgage anyway (my husband was a mortgage broker here for some time it may have changed but I dont believe so!) .....

We also discussed rent to buy here on the forum recently - and again this is a bit of a grey area as its a pretty new concept. To make sure you are protected you should engage the services of a Lawyer or legal representative to check out any contract relating to rent to buy. Its still a bit of a minefield.

Im sure you will get more input as the day wears on! but hope this helps as a start ... although reading it back its not that much of a help really! lol 

Sue


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## owdoggy (Jul 23, 2008)

richie3487 said:


> Hi all, have'nt been on for a while, been busy trying to reconstruct our life after leaving the army and moving to spain at the same time. So its been backwards and forwards to the UK non stop but things are starting to settle down. We have been scouring the area for our preffered house and now we think we've found it but i want to find out about residency, mortgages, rent to buy options
> 
> Can anyone give me a heads up on this,
> 
> ...


Our experience was that if you don't have residencia the banks will have your eyes out with the mortgage, if indeed they'll lend at all.

Also, a lot of properties in our part of Almeria (Arboleas area) are still classed as rustica and as soon as the banks see that that they get very twitchy. 

Best to check if your property is down on the Plan General to be urbanised as a lot of places are........... mind you, this being Spain and, more importantly, Almeria the whole thing will take god knows how long so choose very carefully if you think you'll want to move in a couple of years.

Good luck:yo:


Doggy


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## Tallulah (Feb 16, 2009)

owdoggy said:


> Our experience was that if you don't have residencia the banks will have your eyes out with the mortgage, if indeed they'll lend at all.
> 
> Also, a lot of properties in our part of Almeria (Arboleas area) are still classed as rustica and as soon as the banks see that that they get very twitchy.
> 
> ...




Just to add a point if I may to Doggy's......to be super safe, please make sure you get yourselves down to the local Registro de Propriedad and make sure the property is registered there also. Unfortunately in Spain, this registration is voluntary as they have Catastro (a bit like land registry sort of, but based on zones rather than individual properties) so detail of individual properties has been known to be not very precise and even erroneous. Registro de Propriedad is very much like land registry and totally plot/property related - and will become the definitive (just like land registry in the UK). It ties up everything of old and obviously they can still expropriate for roads, rail or whatever, but they certainly can't say it's illegal as registering in this system, like the UK, requires all t's crossed and i's dotted. Therefore, more and more, even the Spanish, are checking with Registro de Propriedad to avoid any possible future headaches - and properties that are looking to be put on the market are more and more being pushed to register there in order to facilitate a faster, smoother sale.

Tallulah.


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## richie3487 (Aug 19, 2007)

Thanks everyone for the advice, the property is in a well built up area, and is part of a complex not rural at all, its in Los Altos, Costa Blanca, 
We have our NIE, but haven't got Residencia yet, so thats next on the list, but what about mortgages can anyone tell me how the spanish operate there system, i was told id have to be resident here for 2 years before i could get a spanish mortgage, thats why i was looking for rent to buy options, so i dont waste 2 years money while i wait to purchase.

regards,

Rich,


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## SteveHall (Oct 17, 2008)

The mortgage system is changing almost monthly - from throw out 110%s a few years ago to offer nothing to anybody. You need to speak to some banks and maybe even a mortgage specialist if your case is tricky. Just pop in and ask them what their current requirements are. 

Los Altos is DEFINITELY NOT rural!!!!!! Spain's "biggest concreted ghetto" I heard it described rather unkindly a few weeks ago. 

I'd be in no hurry to buy - I am sure that in 2 years prices will be much lower there. Renting sounds VERY sound to me at the moment.


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## jojo (Sep 20, 2007)

I personally would rent rather than take on a mortgage the way things are here, property is set to continue on its rapid downward trend for the foreseeable future?????

! I've heard that banks are very reluctant to lend to any foriegners right now and you have to produce three years of ratified accounts if you're self employed or three years of proof of income and employment if you're not!?? And they're wanting a fairly hefty depost! Mind you as Steve says things change quickly here and so does the criteria between different lending institutions

jo xx


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## Suenneil (Feb 17, 2009)

Hi again ...

Do you mean a Spanish Residents Mortgage ? because if so you wont be entitled to apply for one of them just yet. As Steve says its changing all the time but it used to be that you had to be here for a certain period before applying for a Residents mortgage (they offered a higher lending percentage and sometimes better rates) - as opposed to a non resident mortgage where you obviously needed more money to put down in the first place.

You really need proper expert advice here! given the changes and even differences between lenders ... and as Jo mentioned prices are still coming down! so renting isnt a bad option at the moment ... allows you to be ready to go when you feel the prices are right for you - if thats now then a Mortage Advisor or Bank is a must for proper advice.

Beware that mortgage advisors arent regulated here as they are in the UK, so even if they have FSA registered or whatever on their website or business cards - it wont mean much. That doesnt mean there arent reputable advisors out there though! but do your research ! 
Sue :ranger:


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## richie3487 (Aug 19, 2007)

Guy's, Thankyou for the advice this is great, i will deffo do all the research it takes before taking the plunge and yes renting is the way forward for now, 

Steve yes it is a bit odf a concrete jungle,

but id rather live in a concrete jungle in the sun than a concrete jungle in the rain, and ive had enough deserts, jungles and forests to last me a life time,

I also work in london most of the year so the missus gets to meet friends and its easier for family to visit.

Regards,

Rich,


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## SteveHall (Oct 17, 2008)

Steve yes it is a bit of a concrete jungle, but id rather live in a concrete jungle in the sun than a concrete jungle in the rain

**I agree completely 19 days of rain out the last 22 here - and this is meant to be summer!! 

I also work in london most of the year so the missus gets to meet friends and its easier for family to visit.

**Plenty of flights in to both Alicante and San Javier/Murcia. 

BTW BA has finally given in and scrapped all their London-Alicante flights. End of an era although I read today that they are now considering scrapping meals on all flights under two and a half hours.


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## richie3487 (Aug 19, 2007)

Flights are a joke, i have tried all of the airlines now and i would say,

Monarch are the upper echelon of the cheap flight opporaters,

Ryanair the only thing they dont charge you for is standing on the tarmac waiting to board but that will be next, or they will ask you to fly the plane back. budget my backside,

i cant even start to describe easyjet:

but hey thats life, cant complain when i end up n the beach in san ped, on a friday evening with a glass of chardonay. lol

regards,

Rich,


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## SteveHall (Oct 17, 2008)

After 500+ flights I treat them as a moderate inconvenience. Much like queuing in a supermarket. 

Ryanair have today announced 39 new routes into the Canaries. This is great news for Lanzarote, Tenerife and Gran Canaria

(All the traffic he has taken away from Dublin and Stansted because of their stealth taxes)


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## jojo (Sep 20, 2007)

SteveHall said:


> After 500+ flights I treat them as a moderate inconvenience. Much like queuing in a supermarket.


Flying nowadays is a bus/train service and I often wonder why on earth people who are doing these little short haul flights expect any more than they'd get on a bus or a train, especially as alot of the time its actually cheaper to fly for two hours than to sit on a bus or train for the same ammount of time (in the UK that is!)!

I'll be you wished you could have flown when you drove to Sweden the other week Stevie!!

Jo xx


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## SteveHall (Oct 17, 2008)

Absolutely - 8 days or 3 hours. NO comparison. Now I just have to face the journey back!


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## Suenneil (Feb 17, 2009)

SteveHall said:


> Absolutely - 8 days or 3 hours. NO comparison. Now I just have to face the journey back!


When are you coming back by the way Steve ??? still waiting to meet up for that coffee! and Jo knows how to get here too now so you will have to pay for 2 !


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## SteveHall (Oct 17, 2008)

Looking forward to it too. No rain so far today ...yet!


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## MarkM (Aug 5, 2009)

*Spain*

Hi Richie.

Sorry this is a late post!

Unless you are 100% sure of the area let alone the specific property, the general advice would always be to rent for 6-12 months. Don't rush and don't be pushed into a decision that could be a financial disaster if you get it wrong.

I know rent is dead money but not as painful as ending up with the wrong house in the wrong area.

And don't worry about prices getting away from you. They will still be at these levels in a year or so!


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