Summer is here and has come with high temperatures that make life in the city a little complicated because of the heat. Many think about what it would be like to spend the summer season in a house on the beach, but it is not always possible to rent it year after year. But what if we bought it? How do we know if we can afford it? And under what conditions will they finance it? Then we answer these questions and we present some tips to sign a second home mortgage and welcome the summer by taking a mojito on the terrace of your new house on the seafront.
Have savings, the key to signing your second home mortgage loan
The first thing we must be clear about is that, currently, banks only finance up to 60% or 70% in the case of mortgages for second homes. That means, that we must have savings of between 30% and 40% of the value of the house to cover the part that the entity will not finance us.
To this amount it is necessary to add another 15% of savings approximately to assume the expenses of mortgage and those of purchase , two games that, although we obtained a greater financing for having a good economic profile, we will have to pay out of pocket.
So, before buying our house from the beach and request a second home mortgage, we must know the value of the property that interests us and make sure we have enough savings to cover it.
Compare between the conditions of several mortgages for second residence
Once we have made sure that we can cope with the significant initial outlay that comes with buying a holiday home, the next step will be to compare several offers of financing for this type of residence.
It should be noted that if we go to the bank where we signed our first mortgage, we will leave with the advantage that they will know our capacity to face the debt and return the borrowed money without problems. However, as happens when we seek to finance our first home, it is not convenient to stay with the first offer we find.
In fact, the best thing is to ask for information in several entities and compare, at least, the conditions they offer in three different banks for this type of mortgage loans. For this, it can be very useful to use tools such as the mortgage comparator HelpMyCash.com, with which we can see which banks offer this type of products and contact them directly to make an offer according to our profile.
Calculate the rate of your mortgage for second home
The last step, before signing a mortgage to finance your house on the beach, will be to calculate how much it will cost, both month to month and in total. In this regard, it should be remembered that the Bank of Spain recommends not dedicating more than 35% of our revenues to our financial debts.
So, if we do not want to put our economy at risk but do not want to give up spending the summers in our new house near the sea, we must ensure that both our mortgage loan for second home and any other debt of a financial nature we have (other mortgages , loans or cards), do not exceed this amount.
In addition, it is important that in the calculation not only contemplate the interest that is applied on the mortgage, but also if it has any connection with associated cost. To do this, using the full HelpMyCash.com calculator can be very helpful, since it will allow us to know the monthly cost and the total mortgage.
Author: Elena Gómez
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