How much can I borrow?

There are two main determining factors, the property value and your income.Property Value: As a general rule, Spanish residents can borrow up to 80% of the property value (as it appears on the title deed)and non-residents up to 70%, though sometimes less for higher priced properties. In some circumstances this can be 95% and 80% respectively. Note that the valuation and the purchase price can differ widely.Income: Again, as a general rule, Spanish banks will accept that up to 35% of your net income will be used to repay borrowing. Borrowing may include your domestic mortgage if the purchase is a holiday home, and other loan commitments. It is a family purchase then multiple incomes can be used.

Can I borrow 100%? I've seen the adverts!

Beware of advertised promises of mortgages. 100% mortgages in Spain do not exist except in exceptional cases for residents and usually involve third party guarantees. However, 100% finance can be arranged but that is a different thing. If you already own one ore more properties in Spain with little or no mortgage outstanding then this can often be arranged.

How many years can I repay over?

Spanish mortgages traditionally are from 5 to 20 years and should be completed by the age of 70. However, things are starting to relax more in Spain and terms of up to 30 years are now obtainable.There is no normally maximum to the number of applicants. For example if you are in, say, your late 50s but would like a 25 year mortgage, it is possible to add one or more of your children or other family members to the mortgage, and the mortgage term can be based on the younger age.

Will the valuation be the same as the purchase price?

Probably not. Valuation methods in Spain can differ from other countries and guidelines to valuers are issued by the authorities, sometimes with suggestions they should down-value to avoid overheating of property price rises.

Sometimes for mortgage purposes, the value can be as simple as the square metreage of the property, multiplied by a figure per square metre determined by recent local sales. Views, conditions, specific location and other aspects may be ignored.

What paperwork do I need?

P60, pay-slips, employers reference, bank reference, accounts if self-employed, copy of passports, proof of purchase deposit, mortgage or rent receipts are typical.

What will it cost?

Spanish banks will typically charge an opening fee of 0.75% to 2.0% of the approved loan. Interest rates vary between lenders and special offers are sometimes available. Most banks charge a penalty for early or partial repayment, typically 1%. A mortgage broker can often negotiate special deals and terms in view of the large number of applications they place with the lender.

FOR ANY HELP OR A MORTGAGE QUOTATION PLEASE EMAIL US.

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New full term Interest only mortgage
for non residents in Spain.

Conditions for this mortgage are:

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