Financial Guide:
Financing your purchase
Deciding how you are
going to finance your new purchase needs to be worked
out well in advance. Find out all the options before
you are presented with the situation where a deposit
has to be paid and you have not got your money ready.
Allow 7-10 days for funds to arrive in your bank in
Spain.
If you are going to need a mortgage
get the ball rolling as soon as you have decided you
are serious about buying a new home . Most lenders like
their paperwork and it all takes time. Once you have
your mortgage offer then it is usually up to you when
you actually take it up.
If you are intending taking out a Spanish
mortgage then obviously it will be on the value of the
property you intend to buy but if you have already made
enquiries you will not be panicking about getting funds
on time.
When you agree to purchase a re-sale
property and sign the contract you will be expected
to pay up to 10% deposit. This might be as soon as your
offer is accepted or within as little as 2 weeks. Completion
then often follows within a few more weeks and if your
money has not come through you will be in serious difficulties
and might even forfeit your deposit.
Mortgages
The four main sources open to
you are:
Banks
Every town will have
branches of the main banks and even some local ones.
They offer a full range of services from current accounts,
cash cards, credit cards and deposit accounts to investment
advice and direct debit payments.
Many have bilingual staff who will
be able to help you with your application and keep you
informed of the progress of your application much the
same as they would in your own country.
Current accounts are essential and
arrangements can be made for your bills such as electricity,
water and phone to be paid direct.
A foreign currency account is a good
idea . You put sterling into it (cheques or cash) and
the money remains in that currency until you need to
transfer it to your current account.
Commission charges can be hefty when
transferring large amounts over to Spain if you are
a non-resident so try and find out how much they will
be and haggle if necessary!
