PMuller

Currently in UK but wanting to buy modest property in Spain to retire on small pension eg small flat or house. We have credit rating problem due to recent financial crisis (repayment problem on a loan) but should be in a position to make repayments from future pension. I have a couple of questions if anyone can advise:

1. Do all Spanish lenders explore borrower's financial history into account when deciding whether to approve a loan application?

2. Does anyone know which institutions allow the maximum age limit for repayment period? (We have heard some will allow up to 70 years old. Others longer?)

We can't be the only people in this situation.............

guesswork

I cannot answer your questions specifically but 2 weeks ago when I was over in Spain a Property agent / financial advisor said that most banks are only lending to Spanish residents. Foreign buyers were not being entertained.

I do not know whether this is the same all over Spain but I would imagine he was dealing with most of the banks

missile

I would suggest you speak to another advisor.

I know of at least one non resident foreign national who is in the process of obtaining a mortgage through a spanish bank. Based on his income he has been given approval in principle, property has been valued and he expects to get the go ahead next week.

missile

See here for details of Barclays.es mortgages > https://www.barclays.es/publico/cont...jsp?lang=en_UK

steviedeluxe

Do you own a UK property? Maybe better to rent that out and use the money to rent a place in Spain. With the number of excess properties around, I would have thought you'd be able to pick up a bargain, whether renting or buying. Good luck!

HBG

The banks seem prepared to sell their repossessed houses to anyone from anywhere, with 100% mortgages, a simple google search will turn up tens of thousands of them.

But it’s not a good idea, you’re buying straight into guaranteed negative equity. It’s far better to rent and rentals are safe, cheap and there are thousands of them too.

jdr

So true.

suedenia

we were in our local solbank the other day and they said you can still get mortgages if non resident with a 30% deposit and proof of earnings

PMuller

Thanks to everyone for swift responses. Does anyone have anything specific on whether all lenders apply credit checks (or more particularly are bothered by what they might find!)?

Val W

Solbank checks, you need an Experian report from the UK before they will sanction a mortgage.

missile

I would suggest all banks will carry out credit checks.

PMuller

I would have thought so, too, but wondered if there might be local savings banks or building societies that relied more on their own judgement.

Is there anyone out there that has had this problem and found a solution?

missile

It used to be very easy to get a mortgage through a broker with very few questions asked, hooky payslips were common.

I think you will find this is no longer possible, but you could try one of the many financial advisors who advertise in the free local rags.

spainrico

So many banks caught a financial cold by not thoroughly checking out mortgage applicants that they now do carry out credit checks and require far more legitimate proof of income and larger deposits - and of course the properties are given lower valuations.

Horses and stable doors spring to mind.

No one seems to have mentioned the option here (that I don't think exists in the UK) to subrogate a mortgage ie take it over from the previous mortgage holder. This can be beneficial to both seller and buyer (and the bank)

missile

AFIK, buyer would still have to meet the banks lending criteria?