Bad Mortgage Advice, Be Warned

Tenerife Property and Mortgage have a good working relationship with estate agents in all areas of Tenerife. That enables us to find someone who specialises in the area of your choice and from then on we will guide you through the buying process. Our independent advice covers all areas including money transfers, bank accounts, lawyers, deposits and reservation fees. Our advice will help to protect your money at all times.

Expensive way

A 200,000 euro mortgage with a 7.5% interest rate over 30 years sounds good, especially with monthly payments of 1,250 euros. BUT 30 years on the client will have spent 450,000 euros and still have another 200,000 euros to pay. That’s a frightening total of 650,000 euros.

There is a better way

Take the same starting point of a 200,000 euro mortgage with a 7.5% interest rate over 30 years but this time make the monthly payments 1,398 euros monthly, even at 148 euros a month more than the other scheme and 503,434 euros spent it would mean the bank was paid off and a saving of 146,720 euros.

Raising The Finances

Even in these times of cutbacks there are several sources to look to for finance. Each have their own advantages and it’s important to see which is best for your needs.

Spanish Lenders – You don’t have to be resident to use this option. Banks based in mainland Spain or in the Canary Islands are willing to offer mortgage products. Tenerife Property and Mortgage has a good working relationship with all the leading banks and can select the best one to finance you.

Offshore Lenders – These are more of a speciality market and are a good choice for high net worth customers and mortgages involving more than one currency. Most of these banks tend to be based in Gibraltar but there are also big international banks that are part of the UK offshore market.

UK Lenders - A popular choice for UK home owners although it does depend on how much equity there is left in your property. Maybe a secured loan would suit you, this “second charge” would be secured against your property. There are also unsecured loans available of up to 25,000 pounds, handy for bridging the gap if you don’t have enough money available.

Private Banks And Lenders – Another possible option, Tenerife Property and Mortgage work with a few selected UK private banks looking to fund specific purchases, particularly for high net worth clients. Anyone looking to borrow one million pounds or more will find that we can offer them a choice of options that wouldn’t be made available to other clients.

Any lending deals that are done through the UK involve a service regulated and authorised by the FSA.