Barclays Spanish Mortgages
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Barclays Spanish Mortgages

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Sunday, 28 Sep 2008

Spanish Mortgages by Barclays

Barclays Bank, whilst a well known UK high street bank, also operates a large number of branches throughout Spain. For example in the Costa del Sol alone there are over a dozen branch offices.

However Barclays operates in Spain in a similar manner to other Spanish banks - the choice of mortgage products for example is somewhat limited for expats. Essentially 3 products are offered - a fixed rate mortgage, a variable rate mortgage and a mixed mortgage, where the rate is fixed for a specified period.

Typically Barclays offer up to 60% loan to value and a term of up to 30 years. The interest rate (unless fixed) is pegged to the Euribor, the rate published by the Central European Bank. Up until the recent credit crunch the Euribor rate was typically lower than its UK equivalent index. Barclays offer a 5 year interest only option on some of their products.

The advertised terms for their "Supermortgage" are as follows:

Amounts:

Minimum loan amount 100,000€.
Maximum loan amount 500,000€.
You can borrow up to 60% of the appraised value of the property.

Term:

Maximum term 30 years

Interest rate:

Up to 2 years Interest-Only: Euribor (12 months) + 0.75%. Rate of 6.34% TAE
If you would like an Interest Only option of up to 5 years, Contact us for the latest rates.
Capital and interest payments payable monthly.

Charges:

Opening fee: 1% on the loan amount (minimum of 600€).
No early repayment charge for partial early repayment of the loan.
0.5% charge of full early repayment of the loan during the 1st 5 years of the mortgage.
0.25% charge on full early repayment of the loan after the 1st 5 years of the mortgage.
Valuation fees: payable with application

Terms for those switching an exisiting mortgage differ slightly.

As with most Spanish banks Barclays in Spain rely on an appraised value for calculating the loan amount. This appraised figure is achieved by valuers using complex formulae, and frequently can differ from the actual price the purchaser has agreed. This can mean that a 60% mortgage may actually cover more than 70% of the purchase price should the property value higher. Of course the reverse is also true!

For more information visit Barclays Spain Website or download this contact list (PDF).