What can we borrow with a European Property in the background?

Posted on 21 January 2010 by Mel

Hi, we have a UK mortgage of £180000 on a house value of £320000, combined income of £65000 and have other outgoings - car loans etc £400 month and credit cards totalling £15000.  How much more could we realistically borrow on the equity of our house if we were to remortgage? What interest rates would we be offered?  We also have a Spanish house, mortgage free, currently valued at 300,000 Euros.  Could we draw down any funds from that?

Your advice is much appreciated.

Kind regards.



Based on the information you have given me, I would expect lenders to consider a mortgage advance of circa £250,000.  This would be dependent on a more detailed analysis of your income and expenditure and your overall credit worthiness.

The interest rates that are currently available for a loan of this size are very dependent on the size of the fee you are willing to pay.  The cheapest tracker available carries a fee of 2% which would equate to £5000 on a loan of £250,000 and would probably not offer the best value in your circumstances.  By using the calculator on our website you will get a better idea of the rate and fee combinations available, but I recommend you speak to an independent mortgage consultant to get the best advice.

With regards to your property in Spain, it is certainly possible to draw funds against this and there are several High Street banks and specialist brokers who operate in this field.  Be aware that any additional borrowing will have an adverse affect on the amount that you can raise on your UK property.


Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

You are currently offline. Some pages or content may fail to load.