I live in Spain, can I have a mortgage in the UK and Spain at the same time?
Absolutely you can, it is easier to obtain finance in the UK, especially if you want to purchase or remortgage with the intention to let the UK property out, thereby the UK bank will consider the UK mortgage as being self funded by the rent that it generates.
How do you work out affordability for a UK mortgage even if you have a Spanish mortgage too? Well as long as your personal income supports the Spanish mortgage adequately and you have enough for deposit and rainy day savings etc. then the UK bank bases its lending decision on the rent the property generates.
For example. Suppose you own a UK property worth £300,000 and it generates rent of £895 pcm.
A UK bank calculates that the amount able to be borrowed would be approx. £190,000 this is based on a stress rate of 125% at 4.5%.
Mortgage payments on £190,000 on interest only would be £568 pcm leaving a £327 pcm gross profit.
Simon Murphy is an International Mortgage Broker who resides between Spain | Ireland | UK
Having been in finance for over 17 years & as a Qualified & FCA Regulated UK mortgage professional he can give expert mortgage advice to Expats Worldwide, UK residents & those considering buying abroad with a foreign currency mortgage.
Thanks for your help and dedication in securing my mortgage. Especially since Id changed my job role recently, without your intervention I may have lost the property! At last I’m packing boxes..
Mrs A (South West), Home Mover