Mortgage Direct on why 2016 is going to be a good year for property investment in Spain
Lucas Fox partners Mortgage Direct look ahead to why 2016 is going to be a good year for property investment based on low interest rates, more competitive lending and Spain being singled out as a growth market in the international press.
Review of 2015
Lucas Fox Mortgage partners, Mortgage direct saw their turnover grow by 50% in compared to the previous year and say they expect to see a similar level of growth in 2016. There are several drivers for this growth, some of which relate to the improved conditions for buying property in Spain and others are due to investment and improvements Mortgage Direct have made in their business.
The conditions for buying property in Spain remain very attractive to clients with continued low prices and in many cases favourable exchange rates. Low interest rates and banks showing an increased appetite to lend also contribute to a sustained recovery in the Spanish property market.
The international press has highlighted Spain as a growth market for those wanting to invest in a holiday home and tourist numbers are expected to reach record levels due to political problems in countries like Greece and Turkey. In 2015, they saw several lenders coming back into the mortgage market and offering competitive products.
The Euribor has never been lower and banks have reduced their interest rate margins to the extent where rates are now lower to buy in Spain than many clients can achieve when buying in their home countries.
Current Mortgage Conditions
Mortgage Interest Rates
Euribor (0.056%) + 1.3% to 3%
Currently 1.356% to 3.06%
Maximum Borrowing (lower of valuation or purchase price)
Fiscal Residents 80%
Non-residents up to 70%*
*Depends on client’s profile and country of residence.
For further information on mortgage products, high-net-worth clients & golden visas, visit Mortgage Direct’s recently revamped website. Their comprehensive, step-by-step guide also helps clients understand how the process works.
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