No more Spanish mortgages for British buyers

An announcement from the banking community in Spain this morning stated, “No more Spanish mortgages for British buyers.” The block takes effect from April 5 2016 and affects all new mortgage applications until further notice.

Spanish banks have explained that it was due to the uncertainty of Britain’s continued presence within the EU but that the decision may be reversed if the Brexit vote later in 2016 keeps the UK in Europe.

The change, which may horrify British potential buyers, is confined to new mortgages and will not affect any Brits who have an existing mortgage on a Spanish property. Those are to be honoured and no plans are afoot to change them.

Battening down the hatches

After the financial crisis which almost caused a global meltdown a few years back, financial institutions are more wary of risky transactions and the banking community sees Britain’s potential removal from the EU as too dangerous.

This not only affects overseas Brits who are looking to invest in a property in the sun for their future, it also affects any British persons currently resident in Spain. However, British people who have applied for Spanish citizenship will be able to gain mortgages under the same conditions as Spanish nationals.

No more cards or personal loans either

In addition to mortgages being stopped, new credit card applications and bank loans for those Brits already resident in Spain are to be blocked.

Tom and Mary Cooper, from Southampton, who had planned to retire to Spain in 2017 were devastated. “We sold our house and have been enjoying some holidays. We knew that we only needed a €50k mortgage to top up our savings and buy our dream villa in Spain. Had we known then what we know now, we’d have just bought earlier before we spent a large portion of our savings and not been reliant on a partial mortgage.”

Avril Fuller, from Wigan, who was hoping to get a mortgage for a new commercial premises in Torrevieja with her husband and son said, “Well that’s it now. We came over six months ago and have spent our time getting to know the area and looking at many bars and cafes. This changes everything. We can’t afford to move back to Wigan, but also can’t afford to buy a business here. I don’t know what we’ll do now.”

April Fool – click HERE

Elle Draper

Elle, along with Alan, is the owner of Spain Buddy and the busy web design business – Spain Web Design by Gandy-Draper.
Born a “Norverner”, she then spent most of her life “Dann Saff” before moving to Spain in 2006. Elle’s loves are Alan, the internet, dogs, good food, and dry white wine – although not necessarily in that order.