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Spain has a well developed mortgage market where banks and savings banks are offering a wide variety of mortgages tailored to suit your individual requirements. The market is highly competitive and as we are working with all the major lenders we are able to find the best terms and conditions to suit your specific needs.
Mortgages are available up to 30 year+ terms and are typically up to 70% or 80% of the property valuation. Opening fees are approximately 1% of the loan value. Early partial repayment has no charge however early total repayment is normally subject to an additional 1% fee. The loan total will generally be calculated to a maximum of 35% of your net annual income.
Types of mortgages available:
- Variable Rate Mortgage
This mortgage offers repayments that vary according to the base rate set by the European Central bank (Euribor) and which are normally adjusted on a yearly basis. Current typical variable rate is 5-5.5%.
- Fixed Rate Mortgage
These mortgages tend to have a slightly higher interest rate but are preferred by some borrowers as they offer a fixed cost, with the ability to know your exact repayments over the term of the mortgage.
- Interest Only Mortgage
This type of mortgage offers an initial period, typically 2–5 years, when only the interest on the loan is paid and then after this period the mortgage reverts to the variable rate.
- Mixed Mortgage
With this type of mortgage the borrower is offered a fixed interest rate for an initial period, typically 2-5 years, and then will revert to the normal variable rate.
- Self Build/Construction Mortgage
This mortgage is offered to individual clients who already own the land and have a ready project with a license to build. Finance available upto to 70% of estimated end value. The loan is drawn down at various stages of the construction.
- Self Cert Mortgage
With this type of mortgage clients can borrow upto 60% of property valuation with no paperwork required.
All Banks require the following documents to make a mortgage application:
1. copy of your passport and NIE (spanish fiscal number)
2.
last three payslips and last year tax documents (P60)
3.
For self employed, last two years audited accounts and tax returns.
Documents related to the property you wish to purchase
4. copy of the property Title Deeds (Escritura) + copy of the private purchase contract
5. A copy of the last property tax bill (IBI)
If you wish to build your own house you will also need:
6. A copy of the land title deed
7. Architects project, stamped by the "Colegio de arquitectos"
8. Building license with the payment receipt
Some banks may require further documents for example bank statements, bank references, asset & liability statement, experian credit report.
Please click for a free Spanish mortgage quotation. |
