Each week I  receive enquiries from property buyers seeking advice and information about getting a mortgage with a Spanish bank.

Mortgages to buy property in Spain..

Loan to value (LTV)  60% to 70% is normal.

Bank Repossessions – 80 to 100% mortgages

I   have access to selected bank-invoked repossessions, together with new development properties with bank-enforced 40% discounts.

Terms up to 40 years provided the maximum age does not exceed 75.

Getting a mortgage in Spain.

Are you a High-net-worth client and wish to discuss Spanish mortgage? 

The advantages of arranging your Spanish mortgage at the start of your property search are as follows:

• It costs you nothing to start early
• Forward planning helps you clarify the advantages and disadvantages of taking out a mortgage in Spain and make the best decision as to how much, if at all, to borrow
• Arranging your Spanish mortgage in good time allows you to find the mortgage in Spain that best suits your requirements and avoid overpaying
• By taking steps to arrange your Spanish mortgage at the start you will have a better idea of how much you can spend on your Spanish property and can work out the likely future financial implications of your purchase
• Having your Spanish mortgage in place reduces the risks of you loosing a Spanish property that it has cost you so much to find, and means one less source of anxiety and pressure when you are trying to close on a Spanish property

Mortgages in Spain are offered by banks and savings banks.

The vast majority of mortgages sold in Spain (to both Spaniards and Foreigners) are variable rate mortgages, meaning that mortgage repayments vary according to the base rate set by the European central bank.

Lenders will want to know how much you earn and what your other financial commitments are (your personal balance sheet). As a general rule they will lend according to earnings multiples whereby your loan repayments on all your worldwide borrowing do not exceed 35% of your net annual income. However, if they think you have excellent career prospects, and that your income is likely to increase in the future (something that you would have to convince them of) they may be prepared to lend you more.

More and more people buying property in Spain consider taking out a mortgage with a Spanish bank to finance their purchase in this country.

I can help you save time, as only a few Spanish banks  will supply a Mortgage over €500.000.

Being the owner of your new home can start here and now.

Are your documents  in?

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Then I can help you get a Mortgage in Spain.

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Documents required
The documents required for a mortgage application will vary from bank to bank. Most will not require all the documents listed below, however, for completeness we have included a comprehensive list of what banks could theoretically ask for.
If we have a specific bank in mind for your application we will send you a copy of the bank’s own checklist or an e-mail confirming exactly what is required, so we recommend that you wait for us to do this before starting to prepare your documents for the application.
For all applicants
Obligatory

1. Colour copy of passport
2. NIE number (if you already have it)
3. Full UK credit report (for UK applicants go to www.creditexpert.co.uk and download the full Experian report in PDF format) or equivalent for your home country unless you live in a country were credit reports are not available
4. Details of any significant non-debt related payments, such as private school fees,
alimony (maintenance) payments or rental payments (marking bank statements clearly to highlight these is very helpful)
5. Bank statement(s) showing savings to be used for the deposit, fees and taxes (plus any other assets you can prove to strengthen your case, even if not to be used for the purchase e.g., managed funds, share portfolios etc)
6. Up-to-date Nota Simple plus a web-link to the property
7. Signed copy of Mortgage Direct Terms and Conditions
8. Purchase or reservation contract
9. Solicitors details (name, e-mail address and telephone number)
10. Estate agents details (name, e-mail address and telephone number)
11. Completed application form(s)
Not always required or only if appropriate
12. Details of other loans or debts in Spain, including bank receipts for last 3 payments if appropriate
13. Latest annual mortgage statement for any properties you may own
14. Latest 3 bank receipt slips for mortgages (if appropriate) on any properties already owned in Spain
15. Utility bill (gas, electric or water) proving residence at current home address
16. Bank reference letter, which confirms the length of the relationship with the bank and that the accounts are maintained satisfactorily

Employed applicants
1. Copies of latest 3 months’ bank statements showing income and payment of regular commitments
2. Latest 3 months’ payslips
3. Latest 2 years’ annual tax statements showing gross and net income (P60 for UK applicants)
4. Letter from your employer confirming the date you joined the company, your position (job title), your income and whether you are on a permanent or temporary contract
5. If less than 2 years in current job, details of previous employment (dates with previous employers, job titles, incomes and roles)
Self-employed applicants (sole traders or those not directors of their own companies)
1. Copies of latest 6 months’ personal bank statements
2. Personal tax returns for the last 2 tax years (for UK clients, SA302s are not sufficient on their own for a full application, but useful for initial enquiries)
3. Copies of latest 3 sets of audited sole trader accounts (if appropriate)
4. Letter from chartered accountant confirming net profit after tax in the last 3 tax years

Self-employed applicants (directors of own companies)
1. Copies of latest 6 months’ personal bank statements
2. Personal tax returns for last 2 tax years (for UK clients, SA302s are not sufficient on their own for a full application, but useful for initial enquiries)
3. Letter from chartered accountant confirming salary, dividends and personal drawings in last 3 tax years
4. Latest 3 sets of audited accounts for company (or companies)
5. Copies of latest 6 months’ business bank statements
Retired applicants
1. Proof of all pension income received in the last 2 tax years (P60s for UK clients)
2. Copies of last 6 months’ bank statements showing income and payment of regular commitments
Applicants in receipt of rental income
1. Current tenancy agreement(s)
2. Latest three sets of accounts of the existing business if a similar business will be carried out at the property
3. Latest tax declaration confirming rental income declared to the tax authorities

For commercial mortgages
1. Latest Nota Simple , plus web-link to the property
2. Latest three sets of accounts of the existing business if a similar business will be carried out at the property
3. Business project plan for the new business including a summary of any previous experience in the same type of business

For construction mortgages
1. Nota Simple for land purchased (must be purchased outright in advance of application)
2. Architect’s report
3. Licenses to build
4. Quotes from construction companies
If possible, please send all documents as PDF attachments. Please group the documents, so they are easier to process. For example, the payslips can all be on the same attachment, bank statements on another etc.
Please be aware that originals of all documents may be required before signing the deeds.

Mortgages for non residents in Spain.Mortgage advice for Spain.Spain – mortgages‎.Spain: Mortgages, How to get a mortgage in Spain

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