To receive a mortgage offer in principal then please fill out our Spanish mortgage application form.

The following information has been provided by The Mortgage Group Spain.

Introduction

Raising a mortgage for a purchase or equity release in Spain has never been easier than it is now. The property market is stable, Euro interest rates are low and Spanish banks know mortgage lending is a good investment so they are working hard to make financing a Spanish property by non residents as easy as possible.

The process is relatively straightforward with as you might expect a few peculiar differences from other European countries, so it pays to use a professional mortgage consultant to guide you through the intricacies of the Spanish banking system.

Types of mortgage

The growth in the property market has led to the introduction of a variety of mortgage products which should suit any perspective buyer.

• Interest only mortgages up to 30 years
• Repayment mortgages up to age 80
• 80% loans to value
• Self certification
• Low start repayment
• Self build/construction
• Rustic property mortgages
• Mortgages for plots
• Bridging loans
• Equity release

Application process

Firstly talk to a professional mortgage consultant to establish your requirements and recommend the most suitable mortgage product for your circumstances.

The documentation will depend on the bank and mortgage product, however in general terms the following are required:

Personal information:

• Copies of passports
• Proof of address - copy of utility recent bill

Employed applicants:

• P60
• Last 3 payslips
• Last 3 months bank statements
• Employers reference confirming employment and salary

Self Employed applicants:

• Latest tax return
• Accountant reference confirming income for last 2 years and projected income
• Last 3 months bank statements

Once all the documentation has been submitted to the bank they will provide an offer in principal normally between 1 and 4 days.

This offer is subject to valuation but will confirm the amount, interest rate and general terms of the mortgage.

Valuation reports are lengthy documents often running to 20 or 30 pages; therefore they take time to prepare and as a result may take 7 to 10 days.

Once completed the bank will normally but not in all cases provide a formal mortgage offer in writing.

In total a mortgage offer should take between 4 to 6 weeks.

Costs

• The costs related to taking out a mortgage are as follows:
• Valuation fee (calculated as a percentage of the valuation)
• Bank opening fee (normally 1% of the loan amount)
• Stamp duty (roughly calculated at 1.8% of the loan amount)
• Notary charges (calculated as a percentage of the loan amount)

Mortgages are deemed public documents and as such are liable to stamp duty and notary charges.

Conclusion

Whatever your mortgage requirements it is worth talking to a professional, independent and experienced mortgage consultant to establish what can be done for you.

We at The Mortgage Group Spain work to ensure you receive the most suitable mortgage product for your circumstances and we do not charge consultant fees to you the client.

Please feel free to use our Spanish mortgage calculator.