Obtaining mortgages in Tenerife is not getting any easier even though that banks seems to be rolling in it again…not that they ever seem to have stopped rolling in it to be honest.
To get the ball rolling in an attempt to get a mortgage from a Spanish bank, you would need to complete a decision in principle fact find form so that we could know what amount of funds you would be allowed to borrow.
Some banks here are allowing residents in Tenerife to borrow up to 80% of the value of the property, but being squeaky clean is pretty much a requirement. As a non-resident, you would have to put down at least a 30% deposit probably more, depending upon what the bank decided and even then it is not that straight forward. If you are self employed in your country, then it will likely be even more difficult.
Banks here have also been known to say that they’ll lend you money for the purchase of a property and change their interest rates right up to the date of completion and have on some occasions even decided to withdraw their mortgage offer while waiting at notary to sign for completion.
Mortgage acceptances have dropped nearly 30% over the last 12 months (data from mortgages agreed in May 2013) and all of this in spite of the fact that banks are back in profit…in a big way…!!!
One way of almost certainly obtaining finance for your new home in Tenerife is to buy a bank repossessed property. This way, the banks are almost certain to lend you money to move their stock on, but be warned, although they offer the high possibility of obtaining mortgages in Tenerife and also probably offer massive discounts on their original prices, it has to be said that they are not always in the most desirable complexes or towns and may not be in the holiday type areas that you are looking for.
So, to cap it off, be well prepared because although mortgages in Tenerife are not totally unobtainable, they are still difficult to get and you may well be asked to bring in both sets of great grandparents to vouch for your suitability for a loan.
If you would like to know if you might be considered for a Spanish Mortgage please complete the contact us form below.