Norwich & Peterborough Building Society is expanding its reach in Spain with the introduction of the Spanish fixed rate mortgage.
Previously the mortgage was only available for the purchase of properties along a 70-mile stretch of the Costa del Sol around Gibraltar. However the building society has now doubled that to a 140 mile stretch that takes in all the Costa del Sol.
Fixed at 6.74 per cent for the first five years of the mortgage for loans of up to 65 per cent of valuation, the mortgage is aimed at British expatriates in Spain and Gibraltar as well as Gibraltarians. Following the fixed rate period the mortgage will revert to Norwich & Peterborough standard variable rate, which on May 16, 2001 was 7.25 per cent.
The mortgage has a mortgage arrangement fee of £125. It also has redemption penalties of six months interest during the first five years of the loan.
Looking at the competition, according to Moneyfacts on May 16, 2001 the most competitive product is the expatriate mortgage from Abbey National Offshore. This has a fixed rate of 5.75 per cent for the first five years of the mortgage for loans of up to 75 per cent of valuation. The Abbey National Offshore mortgage has an arrangement fee of £195 and redemption fees of seven months interest during the fixed rate period. It is also available for a wider geographical area, as it can be used to buy properties all over Spain and Portugal.