Hey folks
On a recent house inspection visit I was chatting to the agent's translator (agent not present) during a meeting with a mortgage broker. He showed me an example system of in effect paying less deposit.
Let's say the house is 100k, normally requiring a 30% deposit. Obtain a mortgage on a 100k valuation but actually offer the vendor 80. Assuming the offer is accepted, 70k is borrowed from the bank and 80k paid to the vendor meaning the deposit required is only 10k, not 30k.
This would be impossible in the UK but he seems to indicate it was normal in Spain. The mortgage broker didn't contradict him.
But when I mentioned this as a possibility to the agent he said he'd never heard of this and it would be impossible.
What's going on here? Thanks all.
Trick to paying less than a 30% deposit as a foreigner - house purchase
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- Andalucia.com Amigo
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Re: Trick to paying less than a 30% deposit as a foreigner - house purchase
I thought the normal was to pay a 10% deposit to confirm/ start the purchase process?
That is all I paid.
Cheers
Gerry
That is all I paid.
Cheers
Gerry
Gerry Harris
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- Andalucia Guru
- Posts: 16058
- Joined: Sun Oct 24, 2004 10:42 pm
- Location: La Herradura, Costa Tropical, Granada
Re: Trick to paying less than a 30% deposit as a foreigner - house purchase
Yes, as a normal purchase deposit 10% is normal, but here we are talking about mortgage deposits.
Sid
Sid
Re: Trick to paying less than a 30% deposit as a foreigner - house purchase
10% is the norm but total of 30% is due in a matter of weeks. This is how the large operators got their finance to build (or not in many cases). Remember AIFOS who were taking 30% deposits before they had even purchased the land in some cases. Many Spanish lost money too so they obviously didn't do it. How could you get a bank guarantee if no paperwork for the 30% payment...or am I missing something?
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