Distressed sales Marbella and Fuengirola

Probably because the last few villas of the developments have remained unsold, one forward thinking developer has recently released 5 villas on two developments on the Costa Del Sol Marbella and Costa Calida (Sucina) on an excellent scheme - 100% mortgage including costs like 7% itp tax. The only money payable up front is a 3000 Euro holding deposit - although of course you have to pay the mortgage after.

The Costa del Sol is getting very popular for astronomers as the skies are very clear and in many areas there is very little light polution.

Due to the rising costs here in Costa Del Sol, it's a pity that more don't jump on the '100% mortgage' bandwagon - especially as recent research shows that many people in the younger age groups are now buying property in Costa Del Sol, generally the group with less 'spare cash'. Costa Del Sol is the perfect getaway for young working couples to own a holiday home - being only two hours away from the uncertain British climate and ideal for a long weekend away from the hectic pace of UK life.

However if you don't fancy buying in Marbella or Fuengirola, there are other ways to obtain 100% mortgages on property in Costa Del Sol. Although the majority of banks will lend only 70% to non-residents, some are now upping that to 80%. Given that this amount is based on the valuation, rather than the purchase price, the amount offered can be 100% in some cases.  It all depends on the size in square meters of the property.

An example is the purchase of my own property. The asking price was 250,000 Euros, however the valuation came in at 368,000 Euros. At the 80% lending rate, the mortgage offer was 294,000 Euros giving me 100% mortgage plus the 10% costs and money left over for improvements.  This is like a cash back sale.

Spanish interest only mortgages can now also be obtained, depending on age. When you receive your mortgage offer, it is advisable to use it to 'barter' with other banks as often, another bank will improve on your original offer.  You have to be careful after the credit crunch though.  Commercial mortgages are quite difficult to get in Spain, and the banks require a lot of proof of earnings and trading history.  Even though you can get secured loans in the UK, such second charge borrowing does not exist yet in Spain.

Buying off plan in Marbella for Star Gazing and astronomy

Buying off plan is also another excellent way of getting a good mortgage offer - if you have the initial down payments to start with. It is usual with off plan property to have paid 50% within the first 3 months after reservation. However, when the final 50% is due on completion, you should be able to borrow 70-80% of the final valuation. With a development taking up to 2 years to complete, and taking into account price rises over that period, it is quite likely that you will be able to borrow 100% of the intial purchase price depending on the size of the property.

Alternatively, if you already own a property in Costa Del Sol that is mortgage free, you can borrow against it and often get enough for 95% mortgage for a second property.

I am not saying its easy to get a 100% mortgage in Costa Del Sol, just that it can be done. A lot depends of the individual valuer and the bank used, and the type of property being purchased. As valuations are based on the m2 of the plot and the property, by and large the best type of property is a villa on a spacious plot although again, this is not always the case as we have a couple of spacious 'key ready' apartments that have been valued well over the asking price.

Its a good idea to check out Distressed Sales Marbella to try and get the best deals then you can achive a 100% mortgage purchase.