Mortgages
There are many banks and financial institutions offering mortgages in Spain. There are different requirements depending on whether you are a resident or non-resident in Spain. If you speak fluent Spanish, have plenty of time and enjoy the hassle of dealing with banks, you can arrange a mortgage yourself. Alternatively, let us save your time and money as we have arrangements with most of the best lenders and can arrange a mortgage for you. We would be happy to provide a free initial consultation to all our clients.
There are some differences with getting a Spanish mortgage compared to a UK mortgage. Spanish mortgages are usually at a lower rate than UK mortgages, from around 2.90% depending on availability, althoiugh they are more expensive to arrange initially. Spanish banks may charge anything up to 2% to set-up the mortgage although 1% is more typical.
Mortgages can be fixed or variable, just as in the UK, and can be repayment or interest only.
If you are a resident in Spain, it is possible to arrange a 100% mortgage and in some cases 120% of the purchase price. This is due to the fact that banks will lend against their own valuation of the property which may be quite different from the price you are paying. The normal LTV (loan to value ratio) is around 80%. The period of a loan is anything from 15 years up to 40 years. Bank will often loan up to the age of 75.
Mortgages for non Spanish residents are usually restricted to 80% or less of the property purchase price.
Self-certification mortgages are also available, but are limited usually to around 50% of the valuation price.
Typically, the following information and documentation will be required by most banks offering Spanish mortgages.
Information and documentation needed for a mortgage if you are a Spanish resident
- Copy of the residence permit
- Marital status, age, children etc. (married couples applying for a mortgage should provide information about both spouses)
- Your last three salary pay statements or pension vouchers
- Details of the property you are going to buy ("Nota Simple")
- Copy of your last tax declaration
- Photocopy of the last IBI bill
- Information about any other owned property
- Information about any other debts
- Infformation about any other sources of income
- Annual accounts for the last two fiscal years (if employer or self-employed)
Information and documentation needed for a mortgage if you are a Non-resident
- A copy of your passport
- Marital status, age, children etc. (married couples applying for a mortgage should provide information about both spouses)
- Your last three salary pay statements or pension vouchers
- The last tax declaration made in your home country (P-60)
- If you are an employer or are self-employed, a copy of your tax returns and annual accounts for the last two fiscal years
- Information about other properties owned fully or partly
- Details of the property you are planning to buy
- A brief description of current job situation, other incomes, investments, debts and other properties whether abroad or in Spain, etc.
- Information about any other sources of income
NIE Number
It is now law in Spain, that anyone buying or selling property in Spain must have an NIE number (Numero de Identitad de Extranjeros) which is simply an identity number for foreigners. You will also need the NIE to open a bank account in Spain. Make sure you make plenty of photocopies of the NIE document as it is required for many different things, e.g. registering with local schools, health clinics etc.
We can advise on how to get your NIE number - it's a fairly simple process - but time-consuming! For Elviria, you need to go to the Policia building in Marbella and fill in a form along with a passport sized photo, your passport and a photocopy of your passport. Note: they will not photocopy it for you, although there is a place accross the road that was offering a photocopying service. The queue for the NIE numbers is usually pretty long and will take you a few hours! You would be advised to start queueing around 9am. You should receive your NIE number around 2 weeks later.