Finance advice regarding Spanish Mortgages and Mortgages in Spain

Spanish Mortgages

100% mortgages in Spain
There are 4 ways to obtain this.

-If you are a Spanish resident and have been employed for at least 12 months
-Own another property in Spain with a small or no mortgage. You can buy another one for the same or slightly more in value.
-Find a property that is undervalued, since loans are based on LTV (loan to value)
-Buy an off plan way in advance, upon LTV.

Non-Resident Mortgages in Spain

As a Non-resident you can borrow up to 70% completion with today's market the value would have increased substantially, again based on of the value of the property, this is referred to as LTV (Loan To Value). We can in fact now help you with 80%, however the head office will authorize this once we have received all the documentation. Since we can obtain a percentage of the VALUE of the house, NOT what you pay for it, it means you could obtain finance for the complete purchase, and sometimes more if you find a bargain. Not all Spanish banks carry out credit checks outside of Spain in case this is a great concern of yours. If you have a bad credit rating in your home country, please make sure to inform us of this so that we place you with the "right" bank. The maximum term offered is up to 35 years, depending on your age. This is only offered by one bank, generally the term is 30 years. Most our banks put a maximum age limit of 70, however up to the age of 75 is possible.

This means that if you are in your 60's we can still help you with a term of 10-15 years. Maximum LTV may be difficult to obtain, but this depends on your income.

PLEASE NOTE Spanish banks DO NOT give a mortgage in principal, without all necessary paperwork submitted as well as a valuation of the property. We are however able to give you a yes or no, but subsequently we submit your application to SEVERAL banks to obtain the best mortgage deal for you.

Variable Interest rates in Spain
Rates vary depending on bank and amount you borrow. As an average and for your own calculations we recommend you use 3.25%. Please use our calculator to work out your monthly repayments.

Fixed Interest rates in Spain
We can offer you fixed interest rates. This gives you peace of mind in case you are worried about future rate increases. Up to 12 years this will be 4,75% and 15 years 4,9%. This rate is subject to change. The rate quoted was set in April 2004.

Spanish Redemption Fees
Most banks charge a redemption fee (1%) during the whole term of the mortgage, however not all. Our EAZY Loans for example have a redemption of 0,5%. Please always tell us your full story, so that we can arrange a mortgage with a bank that suits your needs.

IMPORTANT INFORMATION REGARDING NOTARY AND OTHER CHARGES
With any loan, it being a mortgage or equity release, there are notary and other legal charges besides the bank’s charge. We will have these charges specified from the bank a few days prior to notary. If you wish these specified prior to this, it is your solicitor’s responsibility to obtain them.

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