International Island Mortgages

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International Island Mortgages

International island mortgages

Owning an island home is a tropical dream for almost everyone who loves the sunshine and the ocean. A laid-back lifestyle, perfect climate, and year-round holiday vibe are the characteristics of most island nations.

An island investment property can be cheaper than many people think, with favourable house prices and affordable developments in many island nations.

This Mortgages.co.uk guide to international island mortgages briefly profiles the options for investing in a property on an island, and the mortgage process. If the island you would like to invest in is not listed, please fill out a mortgage enquiry form, and we will do our best to find you mortgage information for your country of choice.

Balearic Islands Mortgages

The Balearic Islands are situated in a dreamlike archipelago in the west Mediterranean Sea . They are a province of Spain , and an autonomous community. Both Spanish and Catalan are spoken in the Balearics, although there is a large ex-pat community and many people speak English.

The Balearics are an established holiday home, investment property and tourist destination. When it comes to getting a mortgage in the Balearic Islands , transactions are usually painless, but reading our guides could help you avoid some of the pitfalls. Please also check the Mortgages.co.uk latest lending rates, and the Mortgages.co.uk guide to mortgages in Spain .

Menorca Mortgages/Minorca Mortgages

Menorca ( Minorca ), with a population of just over 80,000, is one of the most beautiful islands in the Balearics range. Getting a mortgage on an investment property in Menorca has become much easier for both non-residents and residents.

Banks provide mortgage loans to non-residents for up to 70 per cent loan to value. A mortgage in Menorca is typically repaid over a 10-15 year period, but in some cases longer repayment periods may be made available.

Mallorca Mortgages/Majorca Mortgages

Mallorca is another popular Balaeric island holiday home destination. Foreign investors looking for a Mallorca mortgage need to have their intended property valued, which generally costs around 275 euros. Relevant searches of the land register must be made, and certificates issued.

Mallorca mortgages are usually on a repayment basis, and 20 years is the established maximum term. Many banks lending on Mallorcan homes require mortgage protection insurance.

Taxes and fees on Mallorcan property can be high, up to 10 per cent of the property purchase price. Interest rates vary depend on whether the buyer is a first or second-time buyer. To apply for a mortgage in Mallorca , foreign investors need to provide tax declarations, payslips, application forms and passport. Self-employed mortgages are available.

Ibiza Mortgages

Ibiza has often been referred to as the party capital of Europe , or at least of the Med. The island enjoys an international reputation for high-living, vibrant night-life, and natural beauty. Because it is so popular, property prices in Ibiza are usually higher than the rest of Spain .

Buyers looking for a mortgage in Ibiza need to arrange independent valuation and a final price, sign a compra/venta contract, and pay a 10 per cent deposit. On an agreed date, the buyer and sellers meet to sign all deeds.

Formentera Mortgages

Formentera is another beautiful, if less well known, Balaeric island. Visiting Formentera allows the foreign buyer to develop a real picture of the island = for it can vary considerably between summer and winter. The island has a favourable climate year-round, but the end of the holiday season brings many changes. Property purchase in Formentera is not as common as other islands – for it has a population of just 5,000, with only 2,000 registered properties.

Much of Formentera is a national park, meaning few opportunities for development. Most homes are locally owned and do not often come up for sale, and there are many design and style restrictions. This preserves the natural charm of the place, and make it a desirable place to visit and live. Each house retains a unique character, and this makes the prices high. All properties can be let during the holiday season.

For foreign buyers looking to purchase in Formentera, a contract is essential. Both parties agree a date for completion, and put up a deposit. All properties are subject to a tax, and each also has a registration fee and solicitors fee. Buyers also require a national identification number.

Banks can provide foreign buyers with mortgages up to 80 per cent LTV over 25 years. Both life insurance and property insurance are included in mortgage repayments.