Spanish Mortgages
If you are thinking of buying a property in Spain, then its worth your while talking to a qualified mortgage broker in Spain. You may be pleasantly surprised at the low interest rate (starting as low as 2.90%) and the amount you can borrow.
Spanish interest rates are usually linked to the Euribor (European base rate), a bit like UK mortgages being tied to the Bank of England base rate. So mortgage rates will often be quoted as a percentage above the Euribor. The 3 month Euribor rate currently stands at 2.59% (18/05/2006) which has compared favourably with the Bank of England base rate for many years.
There are many different types of mortgages available, and many banks and financial institutions to choose from. It is possible to apply for a mortgage yourself at some banks, although it helps if you speak fluent Spanish! Unfortunately, banks aren't known for their customer service, and you may find the your mortgage application goes missing, the bank ask for details it's impossible to provide or they just make the process so difficult, you may fell like giving up and going home. It's not all that bad though!
There are a number of professional mortgage brokers that are now providing an excellent service in Spain, dedicated to providing mortgages and other financial products particularly to non Spanish residents or new arrivals, particularly if you don't speak Spanish and are not used to the exaggerated paper trail!
A good broker will have built up a relationship over the years with key people in a number of different banks which means they have more clout than a person walking in off the street. In some case they will have agreed certain mortgage rates and lending criteria which may be more advantageous to the borrower than the standard mortgages available.
Some mortgage brokers charge a fee to arrange the mortgage. For this fee, they will generally arrange all of the paperwork for you, guide you through any complicated scenarios and ensure that the mortgage does actually go through in time. It has been known for sales to fall through because either the mortgage processing took too long, or an initially agreed mortgage was withdrawn right just before the point of signing. This shouldn't happen if you use a reputable mortgage broker.
If you do choose to use a mortgage broker, then make sure the broker has a good reputation and can source mortgages from a wide range of banks to ensure that you are given the best possible rates.
There are two steps in the mortgage process. The first step is for the broker to identify which of the hundreds of options would be suitable for you, and which ones you are eligible for. Sometimes, the staff at the banks aren't even sure, so this is where a good broker can more than make up for his fees.
The second step is to 'package' the mortgage application. This is where the mortgage application along with all the various other required items, such as payslips, and associated paperwork, are presented to the bank. A good broker will know how each bank works and so will ensure that the Spanish mortgage application is correctly 'packaged' so that the bank doesn't reject it, and is able to start processing it straight away. Then the broker will continue to communicate with the bank to ensure that the application doesn't 'fall between the cracks' or get filed away as ' more information required) etc. This is again, where a good Spanish mortgage broker earns their fees.
Elviria Homes deal with a number of Spanish Mortgage brokers in the Elviria and Marbella area, some of whom are linked with UK FSA regulated bodies, so that you can be sure they are operating correctly. The Costa del Sol and the Costa Blanca have had problems in the past with fly-by-night scammers targeting the unwary, so make sure that before you hand over your money, you've checked that the mortgage broker is who they say they are and they come recommended.
If you are a resident or non-resident in Spain and considering a mortgage or remortgage, give us a call or get an instant online mortgage quote here..
Spanish Mortgage Information
Non-Resident Spanish Mortgages