Property abroad: UK mortgage for Spanish property
Actually, there are many British citizens who want to acquire a property in Spain, and if it is your case you have to take into account different and important aspects. Getting a mortgage for a Spanish property may be easier in the United Kingdom for various reasons. In this article we will explain some of the main aspects of this process.
Getting a mortgage for Spanish property
One of the reasons why it may be easier to find financing in the United Kingdom is because you have a history of domestic payments and loans. With this, a British bank can know your capacity to deal with the mortgage loan without any problem.
It is important to keep in mind that the credit score is not an international measure and data protection laws can vary from country to country. In many cases, the process of information exchange is complex. Therefore, a solid and positive credit rating is not necessarily applied abroad.
On the other hand, it may be more complex to obtain a mortgage abroad because you will not receive the same levels of protection as if you were working with a UK bank or finance institution.
The other side of the coin we find that borrowing abroad can bring different financial benefits. Currently, interest rates are usually lower than those in the United Kingdom, which would lower the mortgage.
It is important to consider the impact that fluctuations of exchange rates may have on mortgage premiums when you want to borrow abroad. With these exchange rates moving, premiums can become higher or lower each month.
As it is a very complex issue and acquire a home requires a team specialized in investment, for these cases, it is best to have a firm of professionals specializing in real estate to go on insurance.