Tancrede de Pola (OP Columnist)
BUYING property overseas can seem like a daunting prospect, especially after Brexit, but it needn’t be.
Whether you are looking to make the move to Spain, or you are an expat looking to branch out across Europe, The Finance Bureau can help you with the first step, owning your dream property.
Searching for a home abroad is an exciting prospect but it is just one piece of the puzzle. The larger – more complex – part of that puzzle is financing a move.
While a small number opt for cash transactions, most buyers will need to take out a mortgage.
Getting financial advice is the most important thing to do before taking the property plunge abroad.
In most cases you’ll have to arrange a loan with a financial institution based in the country in which you’re looking to move to – which can obviously have its obstacles if you don’t speak the language or aren’t familiar with the country’s processes. There are a few banks in places like Luxembourg and Switzerland who offer mortgages on Spanish properties, but these tend to be for the higher end of the market – think properties worth millions of euros.
It means that for most British people needing a loan in Spain, Spanish banks and financial institutions are the way forward.
This is where The Finance Bureau can help Brits looking to move to Spain.
With established links to all the major Spanish lenders TheFinance Bureau acts as a go-between for the client and the bank – but it is important to remember that the broker is not connected to the bank and works independently to find the buyer the best deal available.
When buying abroad, it is imperative to know how much you have to play with when scouring the foreign property market. This will be dictated by various factors, including the amount of deposit available, as well as the level and type of income of the applicant.
The good news is that banks will take into account all incomes, i.e. salaries, dividents and to a letter extent property rental income, when calculating ‘affordability’, but these must always be clearly defined and declared in the tax return from your country of residence.
When lenders are calculating your affordability, mortgage amounts are measured against your personal income and, existing loan commitments, which must be between 30 to 35% of your net income in order to qualify.
But the best – and easiest – way to make sure your dream move abroad comes through with no hiccups is to talk to a broker… that is what we are here for after all.
