When purchasing a property in Tenerife it almost always makes sense to use a Spanish Mortgage. We can currently arrange mortgages up to 70% of the purchase price for a Standard Purchase. However, we can also arrange Tenerife Mortgages up to 100% of the purchase price on Repossessions in Tenerife
Bad Mortgage Advice can mean paying almost double what you need to over the term of your Spanish Mortgage so it makes sense to shop around.
A Spanish mortgage can be arranged directly with a Spanish bank and most estate agents also offer a Tenerife mortgage service.
Unfortunately both of these methods have their flaws. Going directly to a bank may mean missing out on the best deals, there is a large variety of rates and mortgage criteria in Tenerife and over 30 banks to choose from. By only going to one bank you could end up paying far more than you need to.
Asking an estate agent in Tenerife to arrange your mortgage also creates problems as there is a serious conflict of interest. The estate agent wants you to have a mortgage – any mortgage, as they cannot sell you a property without one. They are under a pressure to close sales and will recommend any mortgage they think you will qualify for. This can mean you are saddled with a poor rate or the wrong mortgage term. Worse still, the bank may decide to change the terms on the day of signing. If an estate agent thinks they may lose commission they will advise you to accept the new deal rather than acting in your best interests and finding another bank.
The conflict of interest is far too great for an estate agent to ever give you unbiased mortgage advice, we therefore don´t recommend using them.
Taking out the wrong type of mortgage can mean paying almost double the amount over the mortgage term. With the average mortgage in Tenerife being 175,000 Euros you could end up paying 175,000 Euros more than you need to. We therefore highly recommend you seek the services of an experienced and professional Spanish Mortgage Broker.
With many years experience in Spanish mortgages and using all of the banks in Spain, TenerifeMortgageBroker.com can source exactly what you want from the wide range of Tenerife Mortgages available. As they are not estate agents, there is no conflict of interest and you will be told from the start what they think are the best mortgage products and options for you.
More information from our blog on Tenerife Mortgages: