MORTGAGES

If you are serious about buying in Spain then you should start arranging your Spanish mortgage prior to searching for your property.

There are many advantages in arranging your Spanish mortgage at the start of your property search:
It costs you nothing
It helps you make the best decision as to how much to borrow
It allows you time to find a mortgage that best suits your requirements so that you avoid overpaying
You will have a better idea of how much you can spend on your Spanish property
You can work out the likely future financial implications of your purchase.
Remember, mortgages may run for many years so you will have to live with the consequences of your decision for years to come.

Mortgages in Spain are far easier to get now than they were just 10 years as there is a larger of range of products available. A professional broker will work closely with lenders to tailor mortgages to your individual needs. Interest rates in Spain are still significantly lower than in the UK and other parts of the world which means your money could go a lot further than you think. And when it comes to arranging a mortgage, you could be in for a pleasant surprise when you find out how much you can afford.

Mortgages Available

100% mortgages for residents purchase or refinance

Re-payment mortgages at 80% (capital & interest)

• Up to 80% of the value of the property.
• Up to 5 years interest only.
• Rates from 4.2%.
• Maximum term 35 years.

Re-payment mortgage 70% (capital & interest)

• Up to 70% of the value of the property.
• First 15 years as interest only as option.
• Rates from 4.1%.
• Maximum term 40 years.

Interest-only mortgage

• 40 years interest only facility up to 70% value of the property.
• Rates from 4.1%.

Self certificate mortgages

• 60% value of the property.
• 30 years terms available.
• No age limit.

Equity release mortgage

• Up to 60% of the value of the property, including interest only facility.
• Maximum term 40 years.

Off plan mortgages

• Up to 50% of the final purchase price of the Spanish property.
• Up to 2 years-interest only.
• Rates from 5%.

Building mortgage

• Up to 80% of the project price.
• Release 50% of the land price.
• Rates from 4%.

Bridging mortgages

• Own a Spanish property and want to purchase a new one?
• 3 years to sell your own property.
• Bridging mortgage up to 100% of the purchase price.
• Interest only available

Documentation required for your Spanish mortgage

As a basic guideline the following documents are required to verify your income

• Copy of your passport
• 3 months personal bank statements illustrating declared income and outgoings
• 3 most recent wage slips, plus your latest P60

If self-employed

• Audited accounts for the last 2 years
• Last 2 years' tax returns
• Letter from your accountant confirming your income and tax payments for the previous year
• Proof of any other sources of income that you may wish to borrow against
• Copy of any tenancy agreements on buy-to-let properties
• Details of any pension you may be receiving

Fees Involved

On average, the cost of buying a property in Spain will be in the region of 10 to 15% of the purchase price depending on the complexity of the procedure and the area of Spain in which you are buying.

• Audited accounts for the last 2 years
• Last 2 years' tax returns
• Letter from your accountant confirming your income and tax payments for the previous year
• Proof of any other sources of income that you may wish to borrow against
• Copy of any tenancy agreements on buy-to-let properties
• Details of any pension you may be receiving

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