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I am English citizen - can I get a mortgage in Spain?
Yes, there is no problem for you to get a mortgage as long as you can prove your income.
(Ex. P60, Self-employed, pension or other tax declaration from other country)
How much can I borrow?
The maximum amount that will be advanced is 75 % for a non-resident and 80 % for a resident of the value of the property, or the purchase price whichever is lower.
Can I get a mortgage on any type of property?
Loans are now available to purchase of any type of residential property, whether a small apartment, townhouse, large villa, traditional finca or new development.
Where exactly can I purchase property and still obtain mortgage finance?
- Mainland Spain
- Balearic Islands
- Canarian Islands
How long does all this take?
Once you have decided that you want to go ahead, arranging a mortgage secured on a Spanish property it will usually take 3-4 weeks.
Do I need insurance on my property?
Yes, it will be a condition of your mortgage that fire cover to protect your property is taken through an approved insurance company.
Are there any redemption penalties?
Redemption penalties (known in Spain as early repayment commissions) are applied by almost all banks. These vary between 0,5 - 1,5%.
How long repayment period can I get?
You can have your mortgage from 10-30 years.
How much does it cost to value my property?
The Bank will appoint a valuer from the Bank's panel of valuers to carry out a survey for mortgage purposes, the cost of which is to be met by you before the valuation is undertaken.
FAQ:
1) Do I have to have life insurance when raising a mortgage?
No, it’s not necessary in Spain.
2) When calculating the % of the selling price bank will lend against, is VAT or a transfer tax included?
No, you can only lend against the purchase price without the legal costs.
3) Resident of UK, thinking of buying home in Spain in the range €130k-€150k.
How much cash would I need to put up and as result what is the max mortgage I could borrow?
The maximum you can borrow is 70% of the purchase price as non-resident.
4) I am buying a new build property near Alicante which is due to be completed in May 2006. How far in advance can I apply to you for a mortgage? As the property in question is still in the early stages of construction . When you buy off plan the mortgage can only be raised by completion. The only way to secure a mortgage in Spain is against the property and as long as the property is not completed we can't secure the mortgage. You can apply already now and have the mortgage approved in writing but we can’t do the survey until 1 month before completion.
5) I am interested in buying a property in Spain - holiday flat - but have been told about an NIE (?) form which I believe is needed before I can do anything - Mortgage included - is this true??
No, you can purchase and apply for a mortgage but you will need a N.I.E number by completion which will be your Spanish tax number in the future.
6) I am about to buy a property in Spain which will require stage payments, can you supply a mortgage that allows stage payments?
Yes, if the land and all the licenses are in your name we can do an interest only mortgage with stage payments.
7) How long does a mortgage take to organise?
It takes approximately 2 weeks to arrange the mortgage from the day we have all the requested documents.
8) I am 54 years old, what is the longest period you would grant a mortgage for?
All Spanish banks want the mortgage to be paid off before you are 70 years old so the answer to your question is 16 years.
9) We have chosen a property on the Costa del Sol and want a buy-to -let mortgage,is there such a thing in Spain?
In Spain we don’t have “buy to let” mortgage but a normal re-payment mortgage will allow you to rent out your property.
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