•	Info - Mortgages - To finance the purchase of your home, tha banks offers you different types of Mortgage, so that you can choose the one best suited to your needs. Fixed Interest Rate Mortgage To pay the same monthly repayment consistently throughout the life of the loan
•	Mixed Mortgage To ensure payments over the first four years, guaranteeing the interest rate in case of possible rate increases in the short and medium term. After this initial period, your mortgage will be adapted to the current market interest rate and will be revised annually.
•	Variable Interest Rate Mortgage To enjoy a lower interest rate during the first year and have your Mortgage repayments revised annually according to the interest rates in force at the time.And, in addition, if you choose the Personal Mortgage in our variable rate mortgage option, you can take our a loan which will cover the purchase of the home that will be your usual place of residence, and in future you will have a personal loan to pay for anything you wish, from buying a car to renovating your home, plus the added advantage of lower interest rates than any other personal loan.The capital you pay off will continue to be at your disposal during a long period of time, so that you can use it for anything you wish.
	You can choose to peg your Mortgage rate against either of the two following indexes: IRPHce: Reference Index for Mortgage Loans (for all finance organisations), published by the Bank of Spain. EURIBOR: European Interbank Offered Rate, published by the Central European Bank.

The documentation required to formalise your Mortgage is as follows:

• Passport / Residence permit / Spanish Identity Card of applicants.
• Spanish Tax Declaration (IRPF) for the last financial year.
• 2 latest salary slips (employed workers).
• Proof of other income, if applicable.
• Declaration deed for new building from developer (new building) or property deeds of the current owner (second hand home).
• Private sale-purchase contract or letter containing offer.
• Proof of income tax payments made during the current financial year and declaration of assets (in the case of self-employed or independent professionals).
• N.I.E. (Foreign Resident's Number)

Spain is one of the top overseas destinations for British property investors

a study carried out by Savills Private Finance, the mortgage broker, showed that Spain is still a favourite for investors hoping to combine pleasure and profit. And the gains in Spain have been as well documented as our seemingly insatiable appetite for overseas property investment.

The Economist magazine reported recently that Spanish property prices had risen by three times the average for the Euro zone from 1995 to 2002, while an estimated 600,000 Britons have bought in Spain. One such investor is Jim Bromilow from Liverpool who took out a mortgage with Banco Halifax Hispania and bought a two-bedroom bungalow on the Costa Blanca 25 minutes from Alicante airport about a year ago. Initially, Bromilow says that his purchase was, ‘part investment, part foothold to retire to when the kids go off'.

But after only a year Bromilow is considering buying another property and letting his current property out. He says, ‘I want to hang onto this one as a commercial investment and buy a bigger one as a holiday home.'

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Ease of access from the UK was an important factor in his decision. ‘I booked two flights from Liverpool to Murcia – it was £102 return for the pair – and it costs me £50 to fill up my car. You can't get to London from Liverpool for less than £100', he adds.

He is hoping that his letting venture will go well. ‘If I let it for 22 weeks of the year at £200 per week, that's my mortgage paid for the year.' He has worked out the venture all the way down to the day-to-day running. ‘I have a lady over there with an independent cleaning team who will look after general maintenance and security.'

However, no matter how substantial past price rises have been, future investors will need to be canny and buy wisely to make the most from their investments: some experts say that prices have now reached their peak and that the end is nigh for Spain's booming property market. But in its 2005 report The Royal Institution of Chartered Surveyors European housing review said that, despite predictions that the Spanish property boom was set to cool in 2004, prices were still rising by 17-per-cent annually in the third quarter of 2004. John Howell, an international lawyer, who advises clients on where and what kinds of property to invest in overseas, urges investors to be cautious. He warns that the get rich quick days of double-digit price rises are over. ‘You will no longer see 20-per-cent growth; 5 to 10 per-cent is more realistic', he says.

Howell feels that an important development will be the tax incentives of Self Invested Personal Pension Plans (SIPPs): ‘Anyone buying off plan in Spain can put their investment into SIPPS, so income and capital gains will be tax-free.'

Spain is still the most popular overseas holiday destination amongst the British – over 16 million visits were recorded in 2003. And as budget airlines open up more destinations, tourists are booking flights and accommodation independently – in the past six years the number of independent travellers has risen by 60-per-cent. This could be good news for landlords aiming at the holiday let market, but the competition is tough, so investors must think carefully about where and what to buy.

Howell advises investors to first think about what they want from their investment. ‘If you are buying for your own use, buy where you like. If you are buying for investment, that is different.' He feels that the best place to buy is on or near a golf course. ‘The Costa del Sol is THE place for golf – for the average golfer it is the Mecca. Many of potential tenants will be flying in for the weekend – so you need to be near the airport. Golfers are nutcases – they go for a five-day long weekend and they want to play nine rounds of golf, each on a different course. There are a good half a dozen courses on the airport side of Marbella – I think they have a head start over the competition.”'

However, buyers on the Costa del Sol will need deep pockets. ‘On the Costa del Sol you are looking at a minimum of £300,000 for something on a golf course – you can get away with £250,000 if on a complex,' Howell says. Alternatively the Costa Blanca is considerably cheaper and there are enough golf courses there to make it a viable golfing destination. ‘On the Costa Blanca you are looking at £150,000 to £175,000 for a property on a complex. The Costa Blanca will probably not be as strong as the Costa del Sol, but there are a couple of interesting golf course developments near Alicante. You are looking at 6 to 6.5 per-cent net [of running costs] for both the Costa Blanca and the Costa del Sol, but capital growth will be better on the Costa del Sol.'

GROUND RULES

• The first decision for anyone hoping to let their property, is whether do to it for longer periods or on a short-term basis. This will for many people be decided by how much they want to use their property themselves.
• On the face of it, income for short holiday lets can appear very attractive, but be wary of calculating profit by simply multiplying those high weekly rates by number of weeks in a year. You will have periods when the property is empty, taxes will have to be paid, and running costs are high as the property must be prepared for each new arrival. Do your sums and be realistic about income from letting.
• Long-term lets provide a regular source of income, but the weekly rate when compared to a short-term let, will be lower. And, of course, this option is not suitable for people who want to use their property themselves from time to time.
• Be clear from the outset on your reason for buying: if you aren't relying on extra income to meet your monthly mortgage bill and you only want to let for the odd week here and there, you will probably want to concentrate on finding a property that meets your personal requirements. However if you are banking on regular income, you will need to buy with your tenants in mind. If you are aiming at tourists, think about access to airports, beaches, sports facilities and restaurants. If you want to let on a long-term basis, consider access to places of work: a shack in the mountains will not be attractive for a tenant who works in a city and takes their children to school.
• Maintenance is a responsibility that comes with any property – a dripping tap is one thing, but a dripping tap hundreds of miles away is more time-consuming and complicated to fix. If you are short on time, consider employing a letting agent.
• Do plenty of research before committing and ask agents and other landlords about demand and rental rates in your area.