Barclays has increased its LTV limit from 70 per cent and also increased the mortgage term from 20 to 30 years.
It is a limited product and applications must be submitted by 31 January 2007. It is offered on a rolling 12 month fixed interest rate. Buyers are allowed to take out an initial interest-only period ranging from one to five years. The interest rate ranges from 4.72 per cent to 5.22 per cent depending on the length of the interest-only period.
The product is only available for acquisition of residential properties and is not available for remortgages. It is subject to a 1 per cent arrangement fee and mandatory mortgage insurance guarantee.
Suzanne Clay, business development manager at Barclays, said: “Barclays continually looks to develop its range of mortgages available to British people wanting to buy property abroad. By offering a higher loan-to-value, and adding flexibility at highly competitive rates, we believe this product will enable many budding overseas property investors to realise their dream of owning a home Spain.”
A recently published Mintel report (Home Ownership Abroad and Timeshare, Travel and Tourism Intelligence) estimated 600,000 Spanish homes are under British ownership and the number is growing fast. 20 per cent of all newly built properties in Spain as a whole, and up to 52 per cent of all new builds on Costa del Sol, are bought by British people.
