Spanish mortgages

SPANISH MORTGAGES

Obtaining a Spanish mortgage has a number of advantages when buying property in Spain, even if you have sufficient capital to purchase your new home outright!

There are several points to consider:

• By obtaining a Spanish mortgage you have the added security that the property you are buying has been checked by the bank for any existing debts or charges.

• Your property in Spain is the guarantee of payment, not your home in the UK.

Obtaining a mortgage in Spain is in the most part a very straightforward exercise for non-residents. Most banks supply mortgage documentation in English and offer a tailor-made service for overseas borrowers.

Most banks are still willing to lend between 60 – 70% of the property value for non-residents and up to 80% for residents, with a choice of repayment periods from 5 to 40 years at between 1.75 and 3.5% over the current EURIBOR rate.

The EURIBOR is the European rate of Interest and is currently around 0.57%.

The applicant must of course qualify for the loan, and the property value must be appraised by the bank. Most loans are long-term and secured on the property. When seeking a loan, make sure you are aware of the interest rates and if they are fixed or floating. There are usually set-up costs on a Spanish mortgage depending on the bank and the property.

Documents required to obtain a Spanish mortgage:
• Passport
• P60
• Last three pay slips
• A breakdown of assets and liabilities

If you are self employed you may also be required to produce the following;
• Three months bank statements
• A statement of accounts certified by a letter from your accountant.

If you are looking to obtain a spanish mortage, or remortage, please feel free to contact us.

NB: The contents of this section and the information provided are for general information only and The Spanish Connection accepts no responsibilities for any inaccuracies contained therein.