Property in Spain - Costa del Sol Property - Costa Calida Property

Links Property Property Iberia are dedicated to helping property buyers to make an informed decision when it comes to finding the right mortgage. This is why we have brought together some of the most informative and helpful tools and services on the internet. Use our mortgage calculator below to ascertain your mortgage repayments. Use our currency converter to convert sums of money into a foreign currency.

Through associate companies we are able to offer a comprehensive mortgage service to help you finance your property in Spain. It is important to select the mortgage that is right for you, taking into consideration your personal circumstances. It may be that you prefer to arrange capital in your own country before arriving in Spain.

If you require a mortgage and prefer to use a Spanish lender you will need to provide proof of your ability to repay the mortgage. Terms and conditions do vary from lender to lender, as a non resident you will usually be able to borrow upto 80% of the value of your property repayable over 10-30 years depending on your age.

To assist you in making the right decision we are delighted to recommend The Currency Mortgage Shop who have access to numerous banks and would be pleased to help you in obtaining the best mortgage for you.

Obtaining a mortgage in Spain. As a general rule, a non-resident can borrow 70%-80% of the valuation of a property. In order to obtain the maximum mortgage offer you have to have the maximum valuation. Most banks will accept valuations from two different valuers, but some bank will use only their own valuer. Other key factor is your income since your monthly repayment cannot mean more than a 35% -40% in some cases- of your net salary. Interest rates for mortgages in euros depend on EURIBOR (European Inter Bank Overnight Rate). The rate will be margin on the Euribor, generally Euribor plus .75% up to 1.5%, but each individual circumstances will be taken into account and will make the rate higher or lower. The rate will be review on yearly basis.
Mortgages are available in most currencies, but a currency that does not have a fixed value against the Euro, due to currency fluctuation will make you to borrow more or less expensive. The period of repayment will go from 15 years up to 35 years.

Fixed rate mortgages are also available but at a higher interest rates.

When you apply for your mortgage, if you are employed, you will be asked to provide with:

• Copy of passport/residence
• Last 3 pay slips
• Latest P60
• Last 6 months bank statements
• Reference letter from your employer confirming date of employment, proof of income and position.

If you are self employed, you will be asked for:  copies of accounts for the last 2 years, last 2 years tax returns, charted accountants copy reports, bank reference letter, 6 month personal bank statements and of course copy of your passport/residence.
And in any case you will need to open a NIE, which you can obtain from the police station, and a Spanish bank account, usually the same bank you are using for your mortgage.

As a general guideline, the cost of setting up a mortgage could mean between 2% and 3% of the price of the property, this coming from the following fees:

• 0 .75% - 2% arrangement fee charged by the bank
• 1% mortgage tax
• Title deed, since the mortgage is attached to the property and not to the owner
• Land registry
• Notary fees
• Valuation fees.

If you are buying an off-plan property, you will find that most developers will have a mortgage in place, which will be available on completion, which means that you will have to have, usually 30% of the purchase price, which is normally the percentage asked during construction or at the moment of the purchase contract.

With regard to Land, the amount to be borrowed is limited to 60% of valuation, and the same with a Finca rústica property. If you already own the land the you could apply for a construction loan, which means you could get 70% of the completed project which usually will mean 100% of the building cost. In this case you will have to provide with the Title deed for the land, the plans stamped by the Colegio Oficial de Arquitectos and a 10 year building guarantee.