Barclays launches new Spanish mortgage

Barclays has introduced a new mortgage offering a loan to cover 80 per cent of the value of a property on the Spanish market.

The company, which claims to be the biggest British bank in Spain, is offering the flexible mortgage to non-residents hoping to buy a property in the popular European country.

A rolling 12-month fixed interest rate is available on this product, which also offers the flexibility to take out an interest-only period ranging from one to five years. The interest rate will range from 4.72 to 5.22 per cent, depending on the length of the interest-only period.

Previously, the highest loan-to-value rate offered by Barclays was 70 per cent and the longest available mortgage term was 20 years. This new mortgage can be taken out for 30 years.

Suzanne Clay, business development manager at Barclays, said: "Barclays continually looks to develop its range of mortgages available to British people wanting to buy property abroad.

"By offering a higher loan-to-value and adding flexibility at highly competitive rates, we believe this product will enable many budding overseas property investors to realise their dream of owning a home Spain."

According to a recent report by Mintel, there are currently 600,000 homes in Spain owned by British people and the number is growing rapidly.