mortgage process in Spain

Spanish Mortgages

For those looking to purchase a property outside the United Kingdom, Spain is still a firm favourite. A huge volume of holidaymakers head for Spain every year and it is generally considered to be a safe and well-trodden route.

Mortgage Process in Spain

Get a Free Quote Property Purchasing Process
When considering when and how to finance a Spanish property purchase, it is vital that you have a full understanding of the property purchasing process, so that you know how much money needs to be made available and when. It is also helpful to have a list of what information you will be required to produce during the process so that you can be well prepared.

Mortgage Timing
Once a purchase has been agreed, a pre-agreement contract is usually drafted which simply states that the seller intends to transfer the property to the purchaser at the agreed price, subject to any requirements. At this stage, the buyer pays a deposit of around 10 percent, although this amount is not cast in stone.

Obtaining a Mortgage
In order to obtain a mortgage in Spain, you will need to produce a wide range of documentation including an identification number that identifies you as a resident or as a purchaser of a Spanish property. Your solicitor will deal with this issue, but you should ensure that it is in place because, without it, you will be prevented from obtaining a mortgage!

Property specific issues that have to be covered include proof that property tax is paid up to date, certificates for any work that has been carried out on the property and property titles and deeds. Personal issues that need to be proved include your work contract and 3 months of pay slips (or for the self-employed this can be VAT returns) and information on other mortgages or loans that you may have.

As in the UK, banks will almost invariably request their own valuation which will be conducted by their own appraiser (called a tasador). The cost of this is roughly between 300 and 500 euros. It is worth noting that an appraiser must by law be licensed and can, therefore, offer a variety of services in terms of telling you about the structural status of the property, even if you are not opting for a Spanish mortgage.

On closing the sale, the property will be transferred from seller to buyer and this transaction must be witnessed by a notary. It is at this point that the mortgage money has to be available to complete the purchase. Not only will the mortgage money have to be made available, but you will also have to ensure that there is sufficient cash available to pay the various fees and taxes, as all this will be necessary before the property can be registered and title passed.

Summary
Bullet Point After selecting the best mortgage provider and type, it is important to get your timing right, in order to make sure that the correct financing is in place exactly when you need it;
Bullet Point you will have to pay a 10 percent deposit at the point of agreeing the purchase, which will not normally be available as a mortgage advance and will have to be financed separately;
Bullet Point obtaining a mortgage requires considerable paperwork and due to the potential geographical issues, it is important to make a definitive list of required documents BEFORE you travel to Spain!

Online Mortgage Enquiry and Quote

Online Enquiry...

If you would like to receive a quote for a mortgage from a broker please
Click here...

Mortgage Calculator

Calculate

Typical Interest Payments

First Time Buyers

2.89%

Purchased Fixed

2.89%

Discounted Rate

2.99%

Buy To Let

2.99%

Commercial

3%

 

 

Affordability Calculator

Calculate
Get a Mortgage Quote

Mortgage News Feed Mortgage News Feed

Questions & Answers

Read about general questions asked by brokers and lenders and the best ways to answer...

Mortgage Glossary

Search for terms beginning with the letter:

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z