UCI are a Spanish specialist mortgage company, and we have recently started working with them. They have one product which is absolutely amazing for anyone who currently owns a property on the island and would like to move, or buy another!
It’s called Cambio de Casa (change of house) and it relies on you having reasonable equity in your existing property. Here’s how it works:
- You find your perfect next home.
- UCI then apply a mortgage across the two properties – enough money to buy your new home and pay off your old mortgage.
- For the first three months you pay nothing! This means if you sell your old place within three months, you are effectively getting an interest free bridging loan!
- From month four to twenty four, you have a very special low repayment (less than interest free). So during this time you can either rent out your old property and earn an income, or focus on getting it sold.
- In years three, four and five you pay interest only. Again you can either continue to rent your old property out or sell it.
- At the end of year five, your new mortgage becomes a normal repayment at standard rates.
Here’s an example:
- You own a 2 bedroom apartment valued at €180,000 with a €80,000 mortgage
- You would like to buy a 3 bed villa valued at €300,000
- Your cambio de casa mortgage would be for €380,000 (the new house price plus your old mortgage)
- You move into your new home and decide whether to rent out or sell your old one
- For three months you pay nothing
- For the next 18 months you pay a very low repayment
- For the following 3 years you pay interest only
This is a fantastic way to get moving on your new home, and it gives you a breathing space of up to five years to sell your old one. But you may decide in five years time that you’ll simply keep renting out your old home and treat it as an investment.
All our offices have full details on Cambio de Casa, and they’ll arrange for the rep from UCI to meet with you and explain in detail how it will work for you. Do contact us now for further information!
If you found this interesting, you may also to know about:
1/ Our rent to buy scheme
2/ Our property exchange scheme
And please don’t forget to vote in our poll on what Estupendo is!
