Spanish Mortgages

M

mooney76

Registered User
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Does anyone know of a bank in Ireland willing to offer a mortgage on a city centre aptmt in Barcelona.

I know its not the best time for such a query however the rent covers the mortgage but just not through the extortionate interest spanish banks charge
 
Spanish mortgages usually work on the 12 month Euribor rate, which at the moment is very very low and will go up and down with the ECB rate.
If the apartments rent will cover the mortgage on a ECB variable but not a Euribor variable, then the mortgage would not be covered with even a .75% increase in ECB.
Dont buy property because interest rates are low, they wont be low forever and from personal experience (i'm just back for spain today) i wouldn't touch spanish property with a barge poll for atleast a few years, theres better returns in Ireland than spain.
 
Thanks Senna
I already have a property there having bought it a number of years ago. The main point is that if I were able to get a mortgage on similar terms to what they offer in Ireland it would be a lot cheaper.

Thanks Norfbank
 
I have a variable interest rate loan with Solbank based on euribor

The catch are as follows

There is a minimum interest rate of 4% so when euribor is lower you lose out big time.

There is no free banking so they charge you for having a current account.

The so called variable rate is set on a date annually.

I would be very careful of the small print, not that Irish banks are any better!!
 
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