Personal Secured Loans
Since the new Spanish mortgage law can into play in 2019, it has become increasing difficult for ex-pats to borrow money from Spanish banks. It is no longer possible to borrow solely against your home from the Spanish banks, without also being able to prove your repayment capacity by way of monthly income (earnings/pensions)
JJC Capital Partners can help you – We have found some excellent options for our clients and deals can be done quickly.
Who is suitable for this?
Suitable for clients who need cash to buy another property, or perhaps an investment property or perhaps they have problems like a bankruptcy or even a divorce that needs to be settled.
Sell the property to an investor with the legal right to buy it back within an agreed time. (Commonly 3 to 4 years)
- Sale price will be a maximum of 30% of the current market value.
- The ‘buy- back’ price will be approx. 35% higher than the sale price.
- Seller remains in the property paying a rent equivalent to 4%-6% interest of the purchase price.
- If there is a mortgage on the property it must be lower than the sale price.
- If the loan is not repaid by the end of the ‘buy-back’ period, the house will be repossessed.
The investor pays the client the amount he needs by signing an ‘option to buy’ contract in the public notary, recognised by the Spanish land registry.
This gives them the option, quite literally, to buy that property at an agreed price for an agreed length of time. During this period the client pays back the loan, by paying the stated amount plus an interest rate to the investor. The ‘option to buy’ contract will be automatically cancelled once the loan has been repaid.
Who is suitable for this?
Suitable for clients who need cash immediately but are aware that they will receive money from elsewhere in the short term to pay back the loan.
e.g. They are awaiting completion on a property sale, or an investment is coming to fruition.
- If there is a mortgage on the property it must be lower than the amount of the desired loan.
- Clients need to be aware that if the loan is not paid back by the end of the agreed time, then the investor will buy it for a maximum of 50% of its market value.
- Full address of the property.
- IBI Bill.
- Information about debts over the property.
- Copy of NIE and Passport for all homeowners whose names appear on the title deed.
- Photos of the property.
Maximum and Minimum Period for Repaying the Loan
- Minimun Period: 3 months
- Maximun Period: 48 months
Annual Percentage Rate of Charge (APR)
Representative Example of the Total Cost of the Loan
- Loan type: Only interest paying loan
- Loan amount: 10.000,00 €
- Interest rate: 6%
- Term: 12 months