Mortgages in Tenerife and the Canary Islands (Lanzarote, Gran Canaria, Fuertaventura) are not always underwritten the same way they are in Mainland Spain.
That is to say, terms and conditions can be and often are different. Some banks will simply not lend in Tenerife and the islands at all so please do check before you commit to paying a deposit that the mortgage deal you think you have is valid for the location where you intend to purchase.
Thankfully we have a broker on our team who is based in the South of Tenerife so you can be sure that SpanishMortgages.org has completely up to date information. We can also arrange an appointment if and when you are in Tenerife and have local excellent local knowledge of the property sector there.
For those interested we also have a growing catalogue of high quality, bargain priced Tenerife Property repossessions, many of which have 100% mortgage options attached to them with very appealing interest rates and conditions. Viewings can be arranged directly at this website: TenerifeEstateAgents.net
One advantage to the Canary Islands over Mainland Spain is the year round warm climate. This has the effect of all but eliminating seasonal variation for those investing in a holiday rental. There is also lower tax on property purchases (5.5% instead of the standard 7% IVA tax) making the standard fees for property slightly lower.
Aside from these differences, the purchase process is generally the same as is our advice:
- Use an independent lawyer
- Use an independent mortgage broker
- Get the best advice you can and be very wary of estate agents offering mortgage “advice” in Spain
If you require any further information on mortgages in Tenerife and the other Canary Islands, fell free to contact us here.