Mortgages in Spain
Spain is an amazing country, everyone who is fortunate enough to be here, wants to come back again, maybe even to buy their own homes here. To take decisive action encourages a democratic pricing policy. Find property in Spain for every taste and purse, the more that banks are encouraging the desire to acquire real estate and issue mortgage loans on favorable terms.
Mortgage terms in Spain.
In Spain, the loan can request both citizens and foreigners. The loan amount ranges from 50 to 70% of the appraised value of the premises by 2-5% per annum for a period of 10 to 30 years. For non-residents of the country the life of the mortgage, usually limited to 25 years and depends on the age of the borrower. At the end of mortgage payment the borrower must not be older than 65 years.
There are fixed rate mortgages and floating, fixed rates are the most stable, but they exceed floating, while the floating rates are the most profitable and widespread, but they are dependent on the values of the European interbank Euribor rate and may vary upwards once a year. Another option is a blended rate for the first year is set at a fixed percentage, then for the remaining maturity, the percentage will be variable. Payments are made monthly. According to local law, the monthly mortgage payment should not exceed 30% of borrower's income.
Our Agency will help you to choose the Bank with the most favorable conditions, collect the necessary documents to request a mortgage and open a Bank account.
In the case of the purchase of housing mortgage, between buying and selling parties is the primary contract. In the document the buyer confirms the intent to purchase the property of the seller and specifies its value. After signing the contract, a Deposit sum of – 5-10% of the price of the item purchased. Also, paid the amount of payment for the services of a notary, and a reserve on the initial loan (the amount of funds is negotiated with the Bank on an individual basis).
The Bank makes a positive decision on granting a mortgage loan, and the buyer can make a purchase of real estate.
Open mortgage provides for the payment of Commission to the Bank in the amount of 1% of the loan amount as well as, cover the cost of the study and an independent assessment of the subject contract (real estate) is from 0.25 to 0.75%.
The documents of the applicant for the mortgage depending on the legal status of the buyer.
Individuals working on a contract basis, provide:
- A copy of the preliminary contract of purchase and sale;
- Certificate of employment indicating position, length of service and salary;
- Proof of income type 2 income tax for two calendar years;
- The Bank account statements on the flow of funds over the past six months with the reflection of income;
- the extract from the credit Bureau;
- Ownership certificate (in the presence of movable and immovable property);
- Tax number of the alien N. I. E., which is before signing any agreements or after the buyer has made a Deposit for the selected property;
- Help on additional sources of income (profits from commercial activities, dividends, etc.). Can be represented in the form of income Declaration.
Individual entrepreneurs and legal entities shall submit:
- The Declaration/proof of income 2 most recent calendar year;
- An extract from the register of legal entities;
- Financial report type "Balance" for the 2 most recent calendar year;
- A statement of Bank account/ certificate of cash flow over the past six months;
- Reference letter from Bank with the indication of existing accounts;
- Certificates of property rights (if any);
- Credit history.
The Bank is entitled to request additional documents at its discretion.
If you want to buy a real estate mortgage informed and serious, minimum package of documents (passport, certificate of employment) it is recommended to have. The rest can be sent later. The full package of documents at the first visit to the Bank will speed up the decision-making process by the lender on your question. All documents must be translated into Spanish and notarized. If the property is purchased in the joint property, the documents should be submitted from each of its future owners.
According to the legislation allowed early partial or full repayment of the mortgage with virtually no penalties. This should be spelled out in the contract.
The amount of the monthly mortgage payment can be calculated on our website by filling in the basic fields of an online calculator.
If you are determined to buy a property in Spain with a mortgage, please contact us. You will get a reliable partner that will provide comprehensive assistance at all stages – from choosing the property until the last payment.