Financial Planning

We would like to set out by stressing two very important points:

• We are not professional financial experts and advise all clients to seek independent financial advice, our comments are based on experience, common sense and personal advice from financial experts.
  
  
• We cannot stress highly enough how important it is to get all your finances arranged and in order before you buy a property in Spain.

Our advice to you, is that you should never underestimate the cost of living in Spain, especially if you are a retiree.

Shop around for money transfers but it is usually cheaper and quicker to use a bank that is affiliated to your own.

Always be aware of your Spanish tax liabilities should you obtain a mortgage outside of Spain.

Buying ´Off Plan´: A developers mortgage will nearly always look very attractive but again, it is wise to shop around as it is possible you can find others offering you more flexibility.

Ole Solutions works in close conjunction with an independent brokerage in the UK that offers independent financial advice and has access to exclusive products and extensive experience of dealing with overseas lenders. They deal with the entire mortgage market and can assist with your mortgage administration right up to the point of completion. Arranging your finance early on means that you can enjoy searching for your ideal international home or investment, secure in the knowledge that you qualify for a mortgage.

There are 2 ways to finance your purchase. You can secure an overseas mortgage on the property that you intend to purchase. In some cases you may find that interest rates are lower than those currently available in the UK. Alternatively, if you have equity available in your UK property you may wish to release this to finance the purchase. It is vital to always consider exchange rates. A local currency mortgage will match your asset and liability, however exchange rate movements could increase or decrease the Sterling equivalent of your debt if you decide to sell the property and convert any gains back into Sterling.

With an overseas currency loan your mortgage payments would also need to be made in the local currency. Again your monthly mortgage payment could increase or decrease subject to currency fluctuations.

There are some mortgages available in Sterling but secured on your overseas property. Lending outside the UK is generally more stringent than at home, therefore you should not expect the same rules to apply. You will need to supply full supporting documentation confirming your income. Lenders will want to see payslips, P60’s and tax returns. In addition, some lenders in certain countries have additional criteria attaching to their mortgages such as insisting on life cover being assigned. Their concern relates to the situation where an investor dies leaving the property in a will, when the next of kin could have more rights over the property than the bank. The best way the bank can recoup its lending is to have a life cover plan assigned to them and claim on this instead. The other common and potentially more restrictive criterion is that on the whole only repayment mortgages are available.

If you would like further information or to discuss your personal requirements with our independent financial advisers in the UK, please contact: paul@OleSolutions.net

Contact us:    C/ Sandía, 7 - 11406 Jerez de la Frontera (Cádiz) SPAIN   e-mail: info@OleSolutions.net