In contrast to UK lenders, foreign banks have been reluctant to release money for self-certification mortgages because of the higher risk they perceive is attached to unsalaried borrowers.
Now, Conti Financial Services Ltd (CFS) has launched a variable rate repayment scheme for Spain, spread over five to 20 years, at rates starting at 3.75% fixed for the first year.
The loan amount is based on income and can rise to 50% of either the purchase price or valuation of the property, whichever is lower.
Partial overpayments are allowed if borrowers wish to reduce the term of the loan or cut their monthly instalments, CFS say.
The move comes after a lengthy period of complex negotiations between
CFS and Spanish lenders and the scheme is arguably the first of its kind available to UK buyers.
‘This is a major development in the provision of overseas mortgages,’ said Simon Attrell, CFS’s International Mortgage Adviser for Spain, ‘and reflects the growing confidence of overseas lenders with arranging finance on property for foreign nationals.
‘A significant number of would-be buyers can be disappointed to learn that self-certification mortgages are not available to them abroad. This is an aspect of overseas property finance that we will be able to extend to those clients.’
