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Obtain an 80/20 mortgage if income is from UK

Obtain an 80/20 mortgage if income is from UK

Old Jan 17th 2021, 7:58 am
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Default Obtain an 80/20 mortgage if income is from UK

Newbie here Hello everyone !!

I am looking at purchasing a property in the Sitges, Levantina, Quint Mar area, ideally quite soon.

Sabadell has offered me a 50/50 variable mortgage in principle, however, I'd really prefer an 80/20 fixed rate to allow me to go for a more expensive property and a mortgage on a fixed rate

My situation
NIE obtained in December
TIE card due to arrive this moth

I guess I could look at opening a Spanish company then charging my UK company then apply for a mortgage using my Spanish company income but this may cause 2 issues as far as I know.
1. Potentially less tax efficient
2. It will take a period of time, to show consistent income via the newly formed Spanish company.

OR I could apply using the autonomo method again I face the above 2 challenges.

Any insights and experience on this would be welcome.
Bank recommendations of who may be able to help.
Mortgage brokers, you can recommend who may be able to help.


Thank you in advance for your help and time!
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Old Jan 17th 2021, 4:22 pm
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Default Re: Obtain an 80/20 mortgage if income is from UK

I believe you'll find that the majority of Spanish lenders will now only go to 60 or maybe 70%.
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Old Jan 17th 2021, 5:10 pm
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Default Re: Obtain an 80/20 mortgage if income is from UK

You might get 80% once fully resident. There is a company in Albir that give 80%. (but not close enough for you)

You don't get such a good wages to mortgage rate here compared to the UK.

When we looked a couple of years ago, the best we could get here was 3 to 1 but in the UK I could get 4.5 to 1

Would also think using both company or autonomo would require at least 3 months of trading and bank records (just like in the Uk)
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Old Jan 17th 2021, 7:01 pm
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Default Re: Obtain an 80/20 mortgage if income is from UK

Originally Posted by widski

I guess I could look at opening a Spanish company then charging my UK company then apply for a mortgage using my Spanish company income but this may cause 2 issues as far as I know.
1. Potentially less tax efficient
2. It will take a period of time, to show consistent income via the newly formed Spanish company.
That sounds like an extremely financially inefficient way to do it , the admin on an S.L alone is quite expensive before you get into tax etc .
If you want to live in Spain get a buy to rent in the UK and rent in Spain ,at least for the first year or so, it may not suit you in Spain , if it doesn't you can easily up sticks and off , if it does suit you you`ll have a much better feel of what you want in Spain and the true cost of living , healthcare etc and you can then look to buy a house with your brain not your heart.
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Old Jan 17th 2021, 9:11 pm
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Default Re: Obtain an 80/20 mortgage if income is from UK

Whatever mortgage deal you get, you can expect the banks valuation to be very low compared to the price you pay.
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Old Jan 17th 2021, 9:13 pm
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Default Re: Obtain an 80/20 mortgage if income is from UK

Originally Posted by Fred James
Whatever mortgage deal you get, you can expect the banks valuation to be very low compared to the price you pay.
As in the real value should they have to repossess and sell it at auction .
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Old Jan 18th 2021, 6:32 am
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Default Re: Obtain an 80/20 mortgage if income is from UK

Originally Posted by Barriej
You might get 80% once fully resident. There is a company in Albir that give 80%. (but not close enough for you)

(just like in the Uk)
Thanks, could you share the name just in case they work across Spain please?
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Old Jan 18th 2021, 6:34 am
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Default Re: Obtain an 80/20 mortgage if income is from UK

Thank you very much all for the comments so far

100% Spain is where I want to live both with brain and heart. I appreciate the nuances of a Spanish mortgage, the issue is less about my income to borrowing or whether the bank will lend the full amount against the house but rather they will only lend up to 50% vs 80% if i generated my income here in Spain in Euros.

Any brokers or banks anyone can recommend to speak with perhaps?
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Old Jan 18th 2021, 8:25 am
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Default Re: Obtain an 80/20 mortgage if income is from UK

Originally Posted by widski
Thank you very much all for the comments so far

100% Spain is where I want to live both with brain and heart. I appreciate the nuances of a Spanish mortgage, the issue is less about my income to borrowing or whether the bank will lend the full amount against the house but rather they will only lend up to 50% vs 80% if i generated my income here in Spain in Euros.

Any brokers or banks anyone can recommend to speak with perhaps?
I doubt you will get a mortgage at all as a none resident , when you are a resident and you tell them your income comes from overseas you will have a battle on your hands , personally I doubt you will get a mortgage at all in the current climate , Spain is nothing like the UK when it comes to finance, I dont mean to ***s on your parade but your plan seems very unrealistic.
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Old Jan 18th 2021, 8:30 am
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Default Re: Obtain an 80/20 mortgage if income is from UK

As others already said
https://www.idealista.com/en/hipotec...s-en-espanaThe percentage a non-resident can borrow is usually between 60% and 70% of the price of the property, but each banking entity will set their own risk criteria. Furthermore, your debt level cannot be more than 30-35% of your income. This is to ensure that you can pay back the monthly mortgage fees with no problems.


In Spain, mortgages are normally taken out for a minimum period of 5 years and have a maximum term of 30 years, with the maximum age limit for repayment set at 75-years-old.


It's important to note that each banking entity sets their own different risk criteria that depend not only on the profile of the applicant, but also on their country of residence. Moreover, properties located outside of Spain are not normally considered to be valid guarantees or collateral due to their inaccessibility.
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Old Jan 23rd 2021, 4:15 pm
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Default Re: Obtain an 80/20 mortgage if income is from UK

Just wanted to thank everyone for their help thus far
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Old Jan 23rd 2021, 5:08 pm
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Default Re: Obtain an 80/20 mortgage if income is from UK

You could talk to these people.

When we were first deciding when and how to come over I spoke with them and they didn't try to hard sell.

We were initially after a mortgage to open a B&B and I would continue to work in the UK. They said they could tailor a scheme for me, obviously there was a cost but we never got that far.

https://www.mortgageinspain.es

Im not recommending them, but it might be worth your while talking to a professional (unless we have a mortgage advisor on here)
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Old Jan 23rd 2021, 6:23 pm
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Default Re: Obtain an 80/20 mortgage if income is from UK

After Brexit, the whole financial market has changed. Lots of things that were available no longer are. If banks are closing accounts all over the EU I doubt that cross border mortgages will not be affected.
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