Information about the multi currency mortgage: available to residents only!

How to apply for the Multi Currency Mortgage?
Before you apply for this mortgage you must read the following very carefully.

Product specifications

This is a straight forward capital and repayment mortgage that allows you to cash out up to 50% of the valuation of your Spanish property. This product is also available as a normal purchase mortgage. The maximum term is 25 years or up to age 75. The calculations for your monthly instalments can be made through our mortgage calculator. The current interest rate for the Japanese yen is 1.9% and for the Swiss Frank 2.6%. Bank charges are 2% and the broker fee is 2% (exclusive 16% IVA). Including all other costs such as notary, land registry, stamp duty and gestoria, you will pay 7% in costs that will be taken of the loan at completion. Partial repayment is always possible, for the first 5 years you pay 0,5% penalty and 0,25% thereafter. There is no interest only period available. Most of the mortgages are handled by a notary office in Alicante and the lender is a Spanish bank. The mortgage is available throughout Spain including all the islands. You are allowed to switch your currency to Swiss Franks or Euros at any time. If for instance the Euribor comes down to an acceptable level then you can switch your yen mortgage back to euros.

Valuation

This bank works with different accredited valuation companies and they will only accept valuations that are no older then 6 months. We have negotiated a fixed valuation fee of €300,- to be paid up front. That doesn't mean that all houses will be valued for that amount because the standard fees are around 0,1% of the valuation exclusive 16% IVA. So if you house is worth 750.000 euros the valuation fee will be around € 750,- ex IVA. You only pay €300,- up front and the extra costs will be deducted from the loan at completion.The house prices in Spain have dropped considerably so if you think your house is still worth what it was last year then you will probably be disappointed by the new valuation. To be on the safe side you need to subtract 10 to 20% of last years value.

Income and affordability

This is a full status mortgage, so you have to come up with all your paperwork and an experian report (www.experian.com). The maximum debt to income ratio is 35% (max. 35% of your nett income may be used for capital and repayment) but the risk department will calculate your affordability with 5% interest. So if you think that your affordability is excellent because of the 1.9% interest, then please recheck this at 5% by using our mortgage calculator.

How to apply for this mortgage?

If all of the above is understood and you agree to pay all of the costs then you can apply through our website and an offer will be made. If the offer doesn't suit you, you can stop the process immediately. If you accept the offer you need to sign our letter of intent and pay €300,- for the valuation. You then you have to send us all your paperwork in digital format (*.jpg, *.pdf, *.doc, *.tif) and we will process your application.

Make sure that you send us at least the following documents:

o Last three wage slips/ pension statements / other income
o Credit Report by experian
o Latest tax declaration
o 300,00€ for valuation
o Copy of the identity cards (Passport)
o Copy Escritura of the house (compra/venta)and the N.I.E. number
o Copy of the last Suma/IBI bill
o In case of existing mortgage - last three mortgage statements
o Outstanding debt confirmation

What kind of installment do I pay with this Multi Currency mortgage?

Based on a 25 year capital and repayment mortgage at 1.9% interest:

€ 100.000,- @ 2,5% = € 419,-
€ 200.000,- @ 2,5% = € 838,-
€ 300.000,- @ 2,5% = € 1.257,-
€ 400.000,- @ 2,5% = € 1.676,-

Remortgages

Mortgage Type 1

70% of valuation (Low Documentation) max loan €300,000
(UK tax residents only and must own a property in the UK)

Mortgage Type 2

70% of valuation (Full Status)
(No restrictions on nationality)

Interest rate Euribor + 1%        Repayment mortgage
Interest rate Euribor + 1.25%    Interest only
20 years interest only
Bank opening commission 1.25%

Partial redemption penalties 0%
Cancellation penalty 0.5%        1st 5 years
Cancellation penalty 0.25%    thereafter

If employed
Last 3 payslips
Last P60
Letter from employer confirming income, type of contract

If self employed
Accountant certificate (Chartered or Certified) confirming income for last 3 years
Last 3 years certified accounts or
Last 3 years tax calculations e.g. (SA302)

Timescale 3 to 4 weeks, apply now

Mortgage Type 3

65% of valuation (Full Status)
(UK and Ireland tax residents only)

Interest rate Quarterly Euribor + 1%    
Full term interest only (up to 40 years)
Bank opening commission 1%
Capital raising any purpose (considered on individual basis)

Partial redemption penalties 0%
Cancellation penalty 0%        

Full status
If employed
Last 3 payslips
Last P60
Last 3 bank statements

If self employed
Last 2 years accounts
Last tax return/calculation
Accountant certificate (Chartered or Certified)
Last 3 months bank statements

Timescale 3 to 4 weeks, apply now

65% of valuation CASHBACK (Full Status)
(UK and Ireland tax residents only)

Interest rate Quarterly Euribor + 1.4%    
Full term interest only (up to 40 years)
Bank opening commission 1%
Cash back 3.5% of loan value
Capital raising any purpose (considered on individual basis)

Partial redemption penalties 0%
Cancellation penalty cash back amount in first 5 years, nil thereafter        

Full status
If employed
Last 3 payslips
Last P60
Last 3 bank statements

If self employed
Last 2 years accounts
Last tax return/calculation
Accountant certificate (Chartered or Certified)
Last 3 months bank statements

Timescale 3 to 4 weeks, apply now

Mortgage Type 5

60% of valuation FREE TRANSFER (Full Status)
(European tax residents only)

Interest rate Monthly Euribor + 1.50%    Repayment mortgage
Interest rate Monthly Euribor + 1.60%    Interest only

5 years interest only
Balance on repayment basis
Bank opening commission 1%

Partial redemption penalties 0%
Cancellation penalty costs of transfer within first 5 years, nil thereafter        

Full status
If employed
Last month payslips
Last P60
Last month bank statements

If self employed
Last year’s accounts
Last tax return/calculation
Last month bank statements

Timescale 6 to 7 weeks, apply now