Looking for a Spanish mortgage? There are now may flexible solutions for people requiring a mortgage in Spain.
There are many options available including sterling mortgages secured solely on a Spanish property, full term fixed rates and a potential borrowing of over 100% of the property value.
With interest rates as low as 2.5% and Spanish mortgage terms from 5 to 40 years, there has never been a better time to arrange your Spanish mortgage.
Independent mortgage brokers, have access to every UK mortgage lender and a wide range of overseas lenders, many of which have specialist schemes and special deals. They provide guidance on the legal and technical aspects of property purchase in Spain and review all the available financial options to ensure that you are fully informed when making such an important decision.
How much can I borrow? In general, a Spanish mortgage is up to a maximum of 80% of the property valuation. There are considerable differences between lending abroad and raising finance in the your home country.
Whilst the some systems apply income multiples (i.e. 3 x your gross income) the European view is based on your ability to repay the loan. Most European banks lend on the basis that your total monthly repayments (capital and interest) should not exceed 35% of your net monthly disposable income.
How much will it cost? As a general guide, the cost associated with the purchase of a previously occupied property equates to approximately 10% of its value. The cost associated with new-build property is approximately 12.5%.
How long does it take? Each individual case is different however, you should allow between five and seven weeks from mortgage application to the funds being available.
Obtaining a no-obligation Spanish mortgage quotation will give you a clear picture of how much you can afford to spend on a property. Armed with this knowledge when searching for a property will save you time, money and frustration and assist in eliminating costly delays, the potential for losing your property, your cash deposit and gazumping.
Can I have a buy-to-let Spanish mortgage? Buy-to-let Spanish mortgages are only just becoming available as a specific product in the Spanish market. However, already mortgages can be arranged that allow rental of the property and this income can be taken into account when working out how much you can borrow.
What supporting documents are required for a Spanish mortgage? As a basic guideline the following documents are required to verify your income:
- Copies of the last three months bank statements
- Copies of your last 3 payslips
- A copy of your Tax Calculation if you have one
If you are self-employed you will need:
- Copies of the last three years annual accounts
- Copies of the last three years’ Income Tax
- Calculations issued by tax authority
This is not an exhaustive list and additional documents may be required. Also, Spanish mortgages are available that require less documentation.
