Norwich & Peterborough building society is targeting the Spanish property market with its new 6.24 per cent fixed rate mortgage.
The 6.24 per cent mortgage is targeted at expats looking for a second home and UK residents who are looking for a holiday home in the Costa del Sol area of southern Spain. The mortgage is the first fixed rate mortgage that the company has offered in this region. It has offered similar products in the past based on its standard variable rate.
Compared to Barclays Bank's 7.74 per cent fixed rate mortgage which offers loans of up to 80 per cent of valuation, the 6.24 per cent with a maximum loan to value rate of 60 per cent is competitive.
There are only a few product providers for what can be a complicated market due to the differences between British and Spanish property laws and types of mortgages. Although the Norwich & Peterborough product does add to this market, it is more limited than its rivals, which allow borrowers to buy properties in other areas of Spain other than the Costa del Sol.