Skeptical about banks lending me cash for multiple properties

5 Replies

I want to invest in some properties in Europe (Spain), I lived there for several years, or London where I live now and I have a good credit score, however I am skeptical that the banks will offer me more than one or two morgages in my lifetime. Am I wrong?

Hello @Andreu Pifarre ,

Depends on your income and networth. Normally the banks don't offer mortgages to invest in other countries and if they do is at a higher interest. In the UK, I know, that they offer mortgages to invest in Spain. But is not bussiness as usual.

Let us know if you need help.

@Adrià Creixell Thank you for your answer, however I think I might have asked not giving enough details. According to my research I am able to get mortgages in both countries from local banks, which is not the subject of my question, my question is more about if banks in those countries will offer me more than one or two mortgages so I can build my property portfolio, or on the contrary Europe works differently than the US, and banks a reticent to lend to customers who already have mortgages debts, meaning that the same strategy mentioned on Brandon Turner’s only applies in the US and not in Europe?

Depends on your income and networth. Two mortgages are possible, but for a standard salaried person it's going to be difficult to get a third mortgage (and more expensive). In the UK, the credit score is relevant, in the rest of Europe, if they think that you're going to be able to repay the mortgage they will lend you up to a maximum of 30-35% of your monthly income.

For example: if a person earns 2000 euros per month, this person will be able only to borrow up to 600 euros on monthly mortgage payments.

Also, it depends on the amount of your own savings that you're investing, is not the same to ask for 50% LTV than 80% LTV.

And not, I don't think that the USA strategies are easily appliable in Europe. You could apply other kind of strategies...