The first charge-free 80% loan to value mortgage for the Spanish market has been launched by an overseas property broker. The product will enable UK residents purchasing in Spain to borrow up to 80% of the property value without a higher lending charge. Interest is calculated daily and there are no early repayment penalties. The same type of products has been offered in the past, but included some form of mortgage indemnity or increased costing. Most banks offer products at only 70% without a higher lending charge.
Our view
As ever, caution is the name of the game. Spanish lenders expect much more than just the mortgage arranging with them.
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