Fuengirola - Property and Businesses for sale on the Costa del Sol

Spanish Mortgages

• Mortgages  -  Repayment or Interest Only - Interest rates lower than UK
• Remortgages - Find better terms available in the current market
• Equity Release – Release equity from you property to use for other investments
• Non Status Mortgages – Self certification loans up to 50% of valuation when proving you can afford you investment is difficult.
• Land, Construction, Projects – Loans up to 50% for land and up to 60% of the value of final certified project, with interest only repayments during construction
• Bridging Loans – Interest only payments for up to 3 years.

Why choose a Spanish Mortgage

The interest rates in Spain are currently much lower than the UK, so it makes sense to use a Spanish mortgage for your borrowings.

There are many Mortgage Brokers and Banks on the Costa Del Sol – all vary a little in what they offer and also in costs to you.  You may want to shop around to find the one which will provide the best service for your needs.

Costs

Buying a property and setting up a mortgage in Spain does tend to be more expensive than the UK.  As a guide, the costs are:

• 10% of purchase price – without a mortgage  (Click on ‘Buying a Property in Spain’)
• 12-13% of purchase price – with a mortgage
• Making the mortgage cost 2-3% of purchase price

Required Documents

To apply for a mortgage, you will need:

• Copies of passports
• Proof of income
• NIE number (Numero de Identidad de Extranjeros) – the identification number for foreigners
• Work Contract if you are a Resident in Spain

Proof of Income

There are various ways to prove your income:

Employed

• P60 / Inland Revenue
• Last 3 Pay Slips
• Work Contract
• Copies of Bank Statements

Self-Employed

• Tax Returns
• Bank Statements
• Letter from Accountant

Retired

• Pension
• Investments

These could vary a little from lender to lender.

How much can I borrow and over how long?

The percentage you can borrow will depend on the lender you choose.  These can vary from 70%-95% for a non-resident but are normally no more than 70% of valuation.  A resident can normally borrow 80% of valuation.

The maximum loan term is about 30 years – some lenders will go higher, but any loan term will always depend on your age.  For example, if you are 55 years of age and the lender will loan to people up to the age of 75, then you could get a mortgage for a period of 20 years.  It is possible to get a loan up to the age of 85 with some lenders.

How long does it take to get a mortgage?

This can vary from 1 week to 8 weeks.  It will depend on the amount you are borrowing and the obtaining of relevant proofs etc.  Smaller loans will normally be handled locally, but larger percentages of the purchase price usually have to be agreed by the bank’s head office.  This can add a couple of weeks to the transaction.

For more Information, please contact us.

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