Fiver a day mortgages “first” in Spain
By Kevin Barnett, 04 Apr 2007
The first interest only mortgages from a UK-owned bank, on offer for developments in Murcia, Spain, are expected to boost buyer interest from Britain, Germany and Scandinavia.
They are available first on Palatinum Golf, Spa & Sports Resort, the comprehensive sports plus retirement complex close to the Mar Menor, Europe’s biggest saltwater lagoon at the northern end of the Costa Calida. Borrowers can have interest only for up to 15 years and then start to repay the capital as well.
The developer's UK brokers, PropertyInSpain.Net, are offering the Banco Halifax Hispania deal within their Finance2Go package of Spanish bank account, currency account, mortgage and NIE card option. Repayments work out at a fiver a day on their Libertad 3 co-ownership option and £15 a day on a standard purchase. It will be available on other similar good value, second home developments.
For most buyers, a luxury 2-bed golf view apartment at Palatinum costing EUR 195,000 (£130,650 approx), the mortgage only loan over 15 years would cost an affordable £436 a month. Purchased using PropertyInSpain.Net’s Libertad co-ownership scheme for three people, it can bring down the cost of ownership of a property in Spain to around £145 per month per person – about half of the monthly equity gain forecast for Murcia second homes.
Mortgage expert, Albert Linares said: “This is the best deal yet for Spanish property purchase and the fact it comes from a major UK lender emphasises the underlying strength of the market for homes along the Costas.”
£60,000 equity bonus in 10 years
For the first two years, mortgage repayments would be offset by a bank bonded guaranteed rental scheme, effectively costing the buyers just a few pence a day.
PropertyInSpain’s Terry Walker said: “This is an ideal development for Libertad co-ownership if the buyers are planning family use and/or renting out their apartment. Each co-owner would need only £13,000 as a deposit and be able to pay £145 a month.
There is the prospect of 10% equity growth, so buyers could have a place worth three times the initial investment in 10 years or so.
“If they wish, buyers can sell settle the mortgage without redemption fees and pocket around £60,000 as a bonus to a decade of sunshine holidays. If they have rented out the apartment, their basic ownership costs of a fiver a day are offset dramatically.
This is the deal from Halifax for Palatinum Golf & Spa Resort, where 30% deposit (£39,000) is required, leaving a balance of EUR 136,500 (£91,455) on an interest only mortgage
- Up to 15 years of interest only followed by repayment period
- Interest rate offered: Euribor + 1,10% (if amount requested is less than 60% of the valuation and + 1,35% if amount requested is more than 60% up to 70% of the valuation)
- Set-up commission of 1% and no penalty for early redemption
- Maximum term of the mortgage is 40 years to be repaid by age of 80
- Also available for construction mortgages (plot & build) special conditions
As part of the Finance2Go package, mortgage approval in principle can be arranged before would-e buyers take the one to one view trip on offer by PropertyInSpain.Net. Banco Halifax Hispania have produced a certificate on the mortgage deal, available with detailed repayment figures from PropertyInSpain.Net.
There is a useful fact sheet detailing the repayments and golf resort.
www. PropertyInSpain.Net
London +44 0870 620 0034 Madrid +34 918 292 715
info@propertyinspain.net
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