30 October, 2014

By VIVA Team

Spanish mortgage enquiries from Brits have almost doubled in the past year

Demand from Brits for Spanish mortgages has increased 95 per cent over this year’s January-September period compared to the same period in 2013, finds UK-based mortgage specialists Conti…

As the pound sterling hits a two-year high against the euro, rising from 1.18 to 1.28 over the past 12 months, British buyers have found themselves in a strong position.

And, as always, Spain has been their first port of call when it comes to overseas property, with enquiries about Spanish mortgages accounting for over half (51 per cent) of Conti’s overseas business this year.

Perennial runner-up France accounted for 29 per cent of enquiries, although Conti says that the French market has enjoyed renewed interest from British buyers.

However, it is Spain that remains the undisputed destination of choice for Brits in search of a property abroad, and with the strong pound, a typical €200,000 apartment in Spain is now €25,000 cheaper than it was 12 months ago, despite slight prices rises in Spain itself.

“When you combine the strong pound with the excellent property prices to be found in many leading European markets such as Spain, together with historically low mortgage rates, affordability is better than it has been for years,” said Conti Director Clare Nessling.

“With buyers’ budgets stretching that much further, the purchase of that place in the sun could seem even more tempting, especially when you compare the cost with overheated parts of the UK market.”

The majority of British buyers are opting to finance their properties in Spain with a Spanish mortgage taken out with a deposit of between 20-30 per cent, according to recent data. Obtaining a mortgage with a smaller deposit than that remains rare – while Spanish banks are loosening their lending criteria, most are wary of making the same mistakes as last time round, when 100 per cent and even 110 per cent mortgages for overseas buyers were not uncommon.