The first thing to remember is that mortgages in Spain are attached to the
property and written into the escritura, or title deed. They tend to be
expensive to set up with administration fees of up to €1,500 to €3,000
(£1,00- to £2,000) being the norm. On the other hand many properties,
especially new ones already have a mortgage attached to them (this is a
common way for a developer to finance construction) and you can simply take
this over, avoiding the need for set up fees. Spanish banks will usually
lend non-residents between 60% and 80% of the declared value of the property,
secured against the property in Spain or your property in your home country.
As in the UK, you’ll be required to provide proof of
identity and proof of earnings, typically by supplying your last three salary
slips, recent bank statements, a copy of your passport and sometimes a letter
of reference from your employer. If you are self-employed, you’ll
need to provide the last few years of your accounts, a report from your
accountants, most recent tax return, recent personal bank statements and
a copy of your passport.
You will also need to provide the bank with a copy of the offer letter or
sales contract (‘Contrato
privado de compraventa’) and a
Nota
Simple from the property registry, which identifies what, if any, debts
are attached to the property.
Mortgages in your country of residence
You may find it easier and initially cheaper to take out a mortgage with
a bank in your current country of residence. Be aware, though, that exchange
rate fluctuations can have a significant impact on your mortgage repayments
as the value of the Euro rises and falls.
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Exchange Rate
1.517 €/£. Last updated at 16:29 on the 24 January 2007
