BBVA is a large Spanish bank offering fixed and tracker rate mortgages to British people buying a home in Spain.
The bank offers finance up to 80% of a property value and this can be for your main home and up to 70% for your second home. If the market price and the appraised value don’t match, the lower of the two will be used for lending purposes.
Up to 30-year term mortgages are available through BBVA. You can apply for a maximum term of 30 years to repay your fixed-rate mortgage. The age of the youngest account holder with an income and the term of the mortgage may not exceed 75 years. For example, if the youngest account holder is 50 years old, they can request a maximum term of 25 years.
How much would a 500,000 Euro mortgage be on a fixed rate through BBVA?
For non-BBVA customers applying for a 500,000 Euro mortgage to buy a non new build, second home and investment property in a popular city like Barcelona, the monthly cost would be €2,634 per month. This would be on a 4% fixed rate with a 4.21 APR.
How to apply for your fixed-rate mortgage directly through BBVA
- Calculate fixed interest rate mortgage payments with the calculator.
- Fill in your details and send the documentation.
- The next step is to appraise the property.
- When the mortgage is approved, the last step is to sign the mortgage agreement before a notary public.
Improve the interest rate on your mortgage
Some BBVA products offer a discounted nominal interest rate if you take out insurance products. While you do not need to take them, it is advisable to get financial protection cover through some bank.
- BBVA Allianz Seguros Comprehensive Home Insurance..
- BBVA Seguros loan repayment insurance.
- Setting up and receiving your income by direct billing at BBVA.
Remember that the insurance policies are subject to approval by BBVA Allianz Seguros and BBVA Seguros, respectively.
Do you need to have found a property to get a Spanish decision in principle?
No. A huge number of buyers lose properties because they do not have the finance in place.
It is important to get a mortgage in principle in place before you submit an offer to buy a Spanish property.
Yourspanishmortgage.co.uk works with a Spanish mortgage specialist based in Madrid. He issues mortgages in principle quickly and confirms how much it is possible to borrow. Additionally, he will explain the buying process to you.
Is it safe to buy a property in Spain?
Spain has a very secure property purchase system using ‘seller reservation agreements’.
Once you decide to buy a property and a price is agreed you will have to enter into an ARRAS contract. You typically put down a 10% deposit and agree to complete within two months. Unlike the UK system, if the seller pulls out, they have give you double the ARRAS amount back.
All property completions are done through a Spanish notary and sent to the registry. This process is even safer when you take a mortgage because the lender will ensure the property is legal and properly registered and that it values up. The banks legal agents will also double check the property is correctly registered and all costs are settled.
In short, the banks oversee the security of the transaction between the buyer and seller.
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