Mortgage to Cover RenovationHypothec to cover the renovation
Regarding the usable sqm, I have to refurbish 191 sqm with all new sanitary, cabling, heatings, climate control, etc.. For the first in my entire career, all this has left me with a pretty large mortgage. However, today interest rate is so low and cash so inexpensive that I saw it as a unique occasion not to be lost.
This would not have been possible if the interest had not been so good. I have a 30-year mortgage with a 3 base interest of 19%, but with bonuses referred to binificaciones such as homeowners, homeowners, mutual fund, payroll and a safety alert I have it up to 1.99%.
Unfortunately, like Santos González, president of the Spanish Mortgage Association, folks are saying that mortgage interest is going to go up in the near future, so I'm not sure how long these awesome interest rate fixes will last. Sadly for me too, because I will have to raise my mortgage when the construction work is completed and I might be too late to get the same conditions on the raise.
Do I have to raise my mortgage? This is because the rating of my real estate was much lower than anticipated, which means that my mortgage is about 30% smaller than what I need. What made the rating so low? Mostly because I thought I would be smart and tear out the old galley (pictured above) and bath (below) to make some headway while I was just about to arrange the mortgage.
As it turns out, a real estate house with a kitchen and bathroom, however old and useless it may be, is more valuable in the opinion of a valuing firm than a real estate house without it. Thus if you need a mortgage to perform a major renovation, I have learned the tough way that it is better not to begin with the demotion works until the estimate is done.
CaixaBank was used for my mortgage because I had been doing business with them for 16 years, and the terms of this mortgage were so good for me that I didn't care about buying. The CaixaBank has a branch office throughout Spain, specifically targeted at non-residents who need bank goods and financial solutions such as mortgage loans in Spain.
They are part of CaixaBank's HolaBank branch office structure. I am satisfied with the firm that carries out my renovation work and that I have found through my own people. You take over everything for me - designing, engineering and construction. When you need to refurbish a Barcelona home, or when you need to carry out construction work, and want an offer from a good developer who can take good care of all your work and take good English (or Spanish / Catalan) for you, I can put you in contact with them.
He is a Barcelona-based real estate agent and writer of the section "Spanish Property Doctor" in the Sunday Times (2005 - 2008).