CONVEYANCING & PROPERTY
apply for a mortgage
There has never been a better time to apply for a mortgage in Spain. Mortgages are at present offered at very low rates of interest and deals from some lenders offer beneficial long term fixed rates.
In the recent years, the set up costs of taking out a mortgage in Spain had been a major deterrent to funding a purchase in this way. There were various fees and taxes which made mortgages much more expensive in Spain than many other countries. There were separate notary fees, land registry fees, mortgage arrangement fees (usually 1%) and a taxes. The total could often add up to an additional 3% on top of the purchase price. However, a recent court ruling in Spain has outlawed these costs.
Now the only expense payable by the borrower is the property valuation fee which is normally between €300.00 and €500.00. The other costs are payable by the mortgage provider.
Whilst some banks have made an adjustment to their interest rates in order to compensate these costs, the rates in general are still very attractive. An example of a current offer is as follows:
The majority of banks will require the following documentation from international applicants:
The bank's risk department will then analyse your application. Following approval in principle, the bank will request payment for the valuation and arrange a visit to the property. The valuation report will be available typically after a week. A formal offer will then be provided in writing.
If you would like to talk to us about mortgages, call us today on (+34) 952 78 04 54 or contact us online for a free consultation without any obligation and we’ll get back to you as quickly as possible.
In the recent years, the set up costs of taking out a mortgage in Spain had been a major deterrent to funding a purchase in this way. There were various fees and taxes which made mortgages much more expensive in Spain than many other countries. There were separate notary fees, land registry fees, mortgage arrangement fees (usually 1%) and a taxes. The total could often add up to an additional 3% on top of the purchase price. However, a recent court ruling in Spain has outlawed these costs.
Now the only expense payable by the borrower is the property valuation fee which is normally between €300.00 and €500.00. The other costs are payable by the mortgage provider.
Whilst some banks have made an adjustment to their interest rates in order to compensate these costs, the rates in general are still very attractive. An example of a current offer is as follows:
- Term: 20 years
- Interest Rate: 2.75%
- Type: Fixed rate for full term
- Loan to value: 60% for non tax residents / 80% for tax residents
The majority of banks will require the following documentation from international applicants:
- Copy of Passports
- NIE certificates
- Proof of Address (Main Residence)
- Your last 3 payslips (if employed)
- Your last 2 tax returns (if employed or self-employed)
- The annual accounts for the last 2 years (if self-employed)
- A reference from your employer or accountant (upon request)
- A credit report from your home country
- Bank statements showing income for the last 6 months
The bank's risk department will then analyse your application. Following approval in principle, the bank will request payment for the valuation and arrange a visit to the property. The valuation report will be available typically after a week. A formal offer will then be provided in writing.
If you would like to talk to us about mortgages, call us today on (+34) 952 78 04 54 or contact us online for a free consultation without any obligation and we’ll get back to you as quickly as possible.