If you are looking for a mortgage for your property the news is good. Despite the state of the property market we are able to find you mortgages available in either Sterling or Euros which will be secured on your Spanish property. The majority of mortgages are full status and proof of income and outgoings will be required. Self certification mortgages may be available in certain circumstances. Simply contact us if you have a mortgage requirement or are seeking further information. The maximum loan to value available currently is 80% of the value of the property and some lenders will include fees.   Spanish lenders assess eligibility on the applicant's capacity to repay the loan.  As a guideline, your existing monthly outgoings and the repayment on your Spanish mortgage should not exceed 35% of your net monthly income.  A percentage of rental and investment income can also be considered. Mortgage, rent, personal loans, credit card payments and maintenance commitments are considered as outgoings. Sterling mortgages secured on Spanish property are calculated using income multiples. If you are retiring to Spain or will be paying tax here, do remember that there are very generous tax allowances on mortgages for primary homes.

Types of mortgage Mortgages can be obtained for the purchase of off-plan, new or existing properties and properties on Leaseback schemes. Spanish lenders will consider applications in the name of an English or Spanish Company.  This is not widely available and will be at the lender’s discretion. For construction loans, plans must be provided at the time of application. Funds will be released by the lender directly to your builder (or in our case directly to your lawyer as we require) in accordance with the plans and following the bank’s valuation to ensure the agreed stage has been reached. Capital raising is available on your property in Spain and the amount you can borrow will be determined by a valuation arranged by the lender. Remortgaging is available. We recommend that you check with your existing lender if any penalties will be payable for cancelling your existing mortgage. We are now able to offer a new product where the lender will cover the Notary’s fees and pay up to 0.5% towards any early redemption penalty charged by existing mortgage provider. Mortgage products A variety of products are available ranging from interest-only to repayment mortgages on a variable or fixed-rate basis or a combination of both.  Terms can be from 5 to 40 years.  However, loans must be repaid by 80 years of age.  Many of the products available to you do not have early redemption penalties   Timeframe An ‘Agreement in Principle’ can be obtained from a lender once all the requested documentation has been submitted. This takes approximately 5 working days. A minimum of 6 weeks should be allowed from application to completion. Documentation required by the lender for full status mortgages Proof of identity & residence Proof of income & outgoings Bank statements Property details Life assurance Life assurance is strongly recommended but not obligatory. Organising payment of your Spanish mortgage Please be aware that missing a monthly mortgage payment may have serious consequences and we therefore strongly advise if using a bank account in both Spain and the UK that you ensure your Spanish bank account is always in funds.   Buildings insurance Buildings insurance is mandatory and needs be in place for completion. Most lenders offer their own buildings insurance and if their provider is not used, they will require proof that the policy has been assigned to them. Bank account All lenders will require you to have a Spanish account, many may insist you open an account with them. Completion Mortgage funds will be released by the lender to your Notary for completion of the purchase.       Costs of setting up a Spanish mortgage

Bank’s arrangement fee – typically this is 1% of the loan amount and will be deducted from the loan. Valuations – these are required by all lenders.  The cost varies from lender to lender and is dependant upon the size of the property.   We make no charge for arranging mortgages neither do we take a commission from the banks. If a mortgage is arranged through a UK associate they may make a charge which will be clearly shown. Notary Fees – these are fixed by law and are based on a sliding scale.  If you take out a Spanish mortgage, a further cost will be passed on to you by your Notary for registering the charge of the lender with the land registry.