At Spectrum Mortgages in Spain we deal with a large number of yacht crew mortgages and therefore we are used to dealing with the challenges and the questions that arise when yacht crew apply for a mortgage in Spain.
In this article, we aim to address the typical questions we get as well as some of the myths that often seem to surround the Spanish mortgage process.
This is typically the first question we answer for our yacht crew clients and the short answer is “yes”. The fact that you work on a boat does not make a difference in terms of your eligibility. It all comes down to the numbers, namely the LTV and the DTI.
The answer is yes (again depending on the numbers, of course). If the banks are unable to get a tax return, they will typically ask for 2 years of bank statements from the bank account(s) where you receive your income. It does not matter if it is an offshore account or not. The important thing is to be able to prove income. In this context, it is always beneficial to be able to provide employment contract and salary slips as well.
The banks also require a proof of address, which can be a challenge for yacht crew as you often live and reside on the boat. For this purpose, a stamped captain’s letter that confirms that you live and reside on the boat on which you work can be accepted as proof of address and can often be the best solution.
If you are unable to provide any of this, it will be difficult for that bank to approve your mortgage application due to money laundering legislation.
The answer is generally “no”. We often hear of people who have a friend or captain or who have heard of someone who got a 100% mortgage. This is by no means standard and is normally only given on repossessed properties and the mortgages we have seen of this percentage are normally not the best around either. In other words, it is extremely unlikely to achieve 100% in a mortgage at this moment in time. The realistic percentage, or LTV as it is called, is 70% for non-residents and 80% for residents. The distinction between resident and non-resident is whether you pay taxes in Spain or not.
The answer is generally “no”. The Spanish banks do not do equity releases at the moment, not even if the money is going to be invested in another property. The only way a Spanish bank will consider something along the lines of an equity release, is if you need money for a divorce settlement or if you are planning on a refurbishment of your property.
We often get requests about re-mortgaging and although this can be a good idea if the rate in your existing mortgage is bad, a calculation comparing costs and benefits needs to be done. We are happy to help people out with this, but we only recommend to re-mortgage if it makes economic sense to our client. I.e. the benefits are greater than the costs, because there is a cost involved with this process.
We have a wealth of experience with yacht crew in a mortgage context, so should you have any type of mortgage related doubt or question, feel free to contact us or come to our new office in Portals Nous. We do not charge our clients a fee for our services as we are paid a commission from our collaborating banks for introducing new business.
By Christian Severinsen, managing partner at Spectrum Spanish Mortgages
Tel and Whatsapp: +34-695289181