Mortgages
click here for Mortgage Calculator
There are several ways you can finance a property here in Tenerife. You can either finance it from within the UK by releasing equity from a property, or you can obtain a mortgage in Tenerife.
If you opt for the later, we can help you with this. We work with several banks here so we have the flexibility to select a bank that has a product suitable for your requirements.
There are some general points that apply to most banks. You will hear the term “Euribor®”. This is the Interbank Offered Rate. Whatever the current Euribor® is, the banks here add on a certain % depending on the bank and the type of mortgage. This becomes the “Interest Rate” for your mortgage.
As a general rule for non residents, banks will lend up to about 70% of the banks valuation for up to a 40 year period providing that doesn’t take you over 80 years old. Some banks will also offer “interest only” payments as an option which you will normally pay a slightly higher interest rate and will only be for a certain period.
One of the banks who we are working very closely with at the moment and we have been very impressed with the service they are giving our clients is the Halifax. They have many different mortgage products available, speak English, and do not charge a transfer fee if you have a Halifax account in the UK and transfer money to your account here in Tenerife!
As with a UK mortgage, the banks here will require certain documents. These are normally the following:-
· Application form completed which we can provide you with and help you complete (It´s in English!)
· Copy of passport
· Last 3 payslips
· P60 or SA302
· Letter from employer stating type of contact you have and how long employed
· Last 3 months of bank statements
If Self Employed:-
· Tax Return and SA302
· Chartered accountant letter confirming income for last 2 taxable years and current year projection
· Balance Sheets / Accounts
· Bank References
· Last 3 months bank statements where incomes are received.
Pensioners:-
· Last 3 months bank statements where incomes are received
· Official pension letter
Don’t forget whatever mortgage amount you opt for, allow about 10% on top of any sales price for legal fees & taxes.
To give you a general idea of what your monthly payments will be for a mortgage, you can use the simulator to calculate the approx costs for you. click here for Mortgage Calculator
