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Last Updated: Dec 19th, 2007 - 13:17:15 |
Bank of Ireland today announced details of a new venture with leading Spanish bank, “la Caixa” to provide additional mortgage options for Irish people buying property in Spain. “la Caixa” is the third largest bank in Spain with 4,800 branches and 6,800 ATMs.
The Bank’s venture with “la Caixa” offers three options to people seeking to finance a property purchase in Spain.
1. Equity Release from Bank of Ireland Mortgages
With the value of property in Ireland having increased by 80% over the past 5 years, most people have accumulated significant equity in their property. Customers with an existing mortgage with us may be in a position to release equity, which can then be used to buy their dream property in Spain
We will lend up to 90% of the equity built up in a home, subject to repayment capacity, at new business rates including tracker, fixed or variable. Mortgage terms available range from 5 to 30 years.
2. A Mortgage from “la Caixa”
Alternatively, customers can borrow directly from “la Caixa”, with the mortgage secured on a Spanish property. Customers can borrow up to 75% of the value of a property up to €500,000 and 60% of the value of a property above €500,000 at a competitive interest rate, 12-month EURIBOR + 1.20%. Customers can avail of mortgage terms of up to 30 years, with the option of interest only for the first two years.
“la Caixa” will ensure that all dealings will be in English and that third parties, such as solicitors and valuers, will be recommended. An arrangement fee of 1% of the value of the mortgage is payable to “la Caixa”. Applications forms and details of a “la Caixa” mortgage are available from mortgage advisers in every Bank of Ireland branch countrywide.
3. “la Caixa” Mortgage and Equity Release With Bank of Ireland Mortgages
Customers can apply for a “la Caixa” mortgage to purchase the property (subject to maximum loan to value as outlined in no. 2 above). Customers can apply to fund the remainder of the purchase price and costs associated with buying a home in Spain (such as stamp duty, VAT, tax and arrangement fee etc) via an equity release mortgage with Bank of Ireland Mortgages.
Gabriel Bannigan, Head of Strategy & Marketing, Bank of Ireland Mortgages said: “This is a positive development in European banking and is a direct response to the growing trend of Irish people buying property abroad. Without knowledge of the local market, financing the purchase of properties abroad can be difficult. This can be further compounded by language difficulties. The venture between Bank of Ireland and “la Caixa” offers Irish people both practical support and the reassurance that they are dealing with reputable institutions”.
“la Caixa”, General Manager for Southern Spain, Mr. Manuel Romera, added: “We are delighted to offer customers of Bank of Ireland the additional option of a “la Caixa” mortgage to finance the purchase of a property in Spain. In addition, customers can also avail of the broad range of other financial services offered through our extensive branch network”.
Bank of Ireland’s mortgage advisers are fully trained to advise people on the most appropriate option for their individual circumstances. People planning to buy a Spanish property can call into any Bank of Ireland branch to speak to a mortgage adviser and have the options explained.
© Copyright 2007 by Finfacts.com
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