Spanish Mortgages.

One of the biggest headaches for potential overseas buyers in Spain is how to finance the purchase. Just like every other country in the world, Spain has several laws and conventions, which can make a Spanish property purchase a little daunting. Finding an experienced Mortgage Advisor is a must, someone who hasextensive knowledge of both the domestic and Spanish mortgage systems. Often, a Spanish property can be financed by releasing equity from your UK property. This is the simplest and most popular route, allow you to avoid the Spanish Mortgage issue altogether.

This list of Frequently Asked Questions is really a basis for your own investigations and you should seek professionl advice:

Q: I am English citizen - can I get a mortgage in Spain?
A: 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)

Q: How much can I borrow?
A: The maximum amount that will be advanced is usually 75 % for a non-residents and 80 % for a resident, of the value of the property, or the purchase price whichever is lower.

Q: Can I get a mortgage on any type of property?
A: Mortgages are now available to purchase of any type of residential property, whether a small apartment, townhouse, large villa, traditional finca or new development. Commercial property is more difficult, but possible in conjunction with a business plan.

Q: Where exactly can I purchase property and still obtain mortgage finance?
A: Mainland Spain - Balearic Islands - Canarian Islands

Q: How long does all this take?
A: 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.

Q: Do I need insurance on my property?
A: Yes, it will be a condition of your mortgage that fire cover to protect your property is taken through an approved insurance company.

Q: Are there any redemption penalties?
A: Redemption penalties (known in Spain as early repayment commissions) are applied by almost all banks. These vary between 0,5 - 1,5%.

Q: How long repayment period can I get?
A: You can have your mortgage from 10-30 years.

Q: How much does it cost to value my property?
A: 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.

 

This list has been complied and intended for guidance only. It should not be considered a substitute for individual professional legal advice.

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