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1) I am a European 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, and that you can afford the repayments.

We are also able to help citizens from outside the EU, i.e North Africa or South America.  As normal, the ablility to repay is paramount.
 

2) Do I have to have life insurance when taking out a mortgage?

- Not always, although some lenders may insist on this, and offer preferential mortgage terms if you do.


3) When calculating the percentage of the purchase price the bank will lend against, is the IVA included?

- Normally you can only lend against the purchase price without the associated taxes that are payable.


4) I am a European resident, thinking of buying home in Spain for €150,000. How much deposit would I need to put down?

- The maximum amount you can normally borrow, as a non-resident, is 80% of the purchase price, although some lenders may lend against the valuation, if this is higher. Therefore in this instance you would need to deposit €30,000.

5) I am buying a new build property which is in the early stages of construction. How far in advance can I apply to you for a mortgage?

You can apply for a Decision in Principle immediately. We would normally recommend you apply for the full mortgage about three months prior to the completion of the property.
 

6) How much as a percentage of the purchase price can I borrow?

The maximum amount that will be advanced is normally 80 % of the property value for a non-resident and 100 % for a resident.

7) 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. Some lenders, however, will not lend on properties built on rustic land, and those that do may restrict the amount you can borrow, normally to a maximum of 60% of the valuation.

8) Where exactly can I purchase property and obtain a mortgage?

- Mainland Spain
- Balearic Islands
- Canary Islands

9) How long does the mortgage process generally take?

Once you have decided that you wish to proceed with arranging a mortgage secured on a Spanish property it will usually take in the region of 4 weeks.

10) Do I need insurance on my property?

Yes, it will be a condition of your mortgage that buildings cover is taken, either via the bank or through an approved insurance company.

11) Are there any redemption penalties?

Redemption penalties (known in Spain as early repayment commissions) are applied by most banks. These vary between lenders, but are capped at 0.5% of the amount repaid. We have access to No penalties schemes for clients looking for more flexibility.

12) Over how many years can I take my mortgage over?

This will depend upon your age, but typically for up to 40 years, maximum age attained at the end of the term is 80

13) 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 valuation for mortgage. The cost of this will vary dependant upon the purchase price of the property, but, as a guide, €500. The cost of which is to be met by you prior to the valuation being undertaken.

14) What documents do I need to provide?

This will depend on your circumstances, i.e. employed or self employed, but as a guide lenders normally require the following;

Copies of passports.

Copies of last 3 months personal bank statements

Copy of your full credit report. This can be obtained at: www.experian.co.uk

Proof of savings & deposit payments made

Proof of income

Employed
1 or 2 years P60´s
Last 3 months payslips.

SELF EMPLOYED
1 or 2 years Inland Revenue tax returns

SERVICE STANDARDS
As part of our service standards we promise to provide you, wherever possible, with a Decision in Principle within 24 hours of receipt of your application and the above information