A Spanish house buy

By THIS IS MONEY
Updated:

 

We are looking to purchase a house in Spain (approx £32,000) and are looking for a mortgage on the Spanish property, preferably in sterling at a fixed rate. Apart from Abbey National Offshore we are having trouble tracking down lenders who provide this service. HG Hassocks, West Sussex

Jo Nossell at Conti Financial Services, Overseas and Ex-Pats Mortgage Brokers, says: There are a couple of other lenders who lend on Spanish property in sterling. Royal Bank of Scotland in Gibraltar offers loans up to 75% of the property's value and N&P in Gibraltar offers up to 60%. As far as I know there are no fixed rate deals available. It seems strange that you want a sterling loan for a Spanish property. Many people prefer to borrow in the same currency as their property is purchased and peseta rates are based on Spanish rates which are lower than UK mortgage rates. You will need a Spanish bank account if you want to buy a property in Spain anyway, so you could keep money on deposit there and pay your mortgage payments from that. Bear in mind you will have to pay conversion rates if

you earn in sterling and pay the mortgage in pesetas and there will be an exchange rate risk.

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