Mortgages

Mortgages can be taken out on property in Spain, either in Spain or elsewhere.



Mortgages are generally readily available in Spain, although the amount the banks are prepared to lend varies on whether you have registered for residency or not and often a sizeable deposit is required. Favourable interest rates are currently being enjoyed in Spain for both fixed and variable mortgages.

It pays to shop around for a mortgage. It may be that the estate agent you are buying through will introduce you to a local bank. However, don't let this deter you from checking out other banks. Language should not be a problem as most of the banks have people who will speak your language. Research each bank's offer as sometimes an extremely low starting rate is cancelled out by having to sign up to an expensive life insurance scheme. Also, look at the amount being charged to set up the mortgage as this also varies, as does the penalty for early settlement.

Transferring funds

Again, shop around. In Spain it's possible to negotiate the commission on transferred funds. So don't be afraid to approach banks other than the one with which you have opened an account. A chat with a friendly bank manager could result in a substantial saving.

An alternative is to deal with one of the currency traders.

Investment

Proceed with extreme caution. Don't join the newly penniless who have believed everything they have been told by unscrupulous cowboy "advisers". Make sure that you only deal with established, reputable and professional organisations with a transparent track record.