Spanish Mortgages
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Interest only Mortgages
No Prof of Income Mortgages
80%
Mortgages available in Spain
Availability
Hamiltons Investment Group has a dedicated mortgage desk. We can therefore
assist with all your mortgage requirements. Mortgages on Spanish properties are
available, up to 70% of the value.
Main lenders
Most Spanish banks (Sol Bank, Deutsche
bank, BBV and Bank of Atlantico) and Building Societies (Halifax, Norwich &
Peterborough, and Abbey National) will offer mortgages for properties purchased
on the Costa del Sol. Properties bought off plan can also be mortgaged, on
completion.
Mortgage costs
Depending on which
lender has been selected to provide your mortgage:
-
The
arrangement fee will be between 1% and 1.5% of the loan.
-
The
valuation fee will be approximately €500 depending on the property
value.
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There are
also the notary costs, taxes, property registration and legal fees of
the lender.
-
For easy
calculations the above costs normally total up to between 8-9% this cost
must be considered when purchasing property in Spain.
The maximum amount you can borrow will
also depend on your income. In general the rule of thumb is that you will be
advanced up to 3 times your gross annual income.
Currency of mortgage
Mortgages are available in most major currencies. We strongly advise
however, that you set up your mortgage in EUROS. This safeguards your risk of
exposure to currency fluctuations.
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Interest rates
Interest rates for mortgages in Euro are based on EURIBOR (Euro Inter Bank
Offered Rate). The lenders will normally charge EURIBOR + 1.25% but
individual circumstances will determine the exact interest rate, which could
be higher or lower. It is common to find that some lenders offer a lower
"Start up" interest rate of 3.75% for the first year then go up to EURIBOR +
1.25% from Year 2 onwards.
In general, the maximum repayment term
is 15years, but up to 25 years can be arranged. This will be dependent on the
age of the borrower. The eldest partner must not go beyond his 70th birthday by
the end of the term of the mortgage. This means that for a couple, where the
eldest partner is currently 55 years old, the maximum repayment term on offer
would be 15 years.
Documents required
The documentation required will vary from one lender to the next. As a
general guideline we have listed most of the paperwork you are likely to
need, it is a good idea to prepare much of these as soon as possible. If you
are employed you will need to produce:
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Last 3 wage /salary
slips.
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Last income tax
declaration (P60 in the UK) or evidence of latest annual tax assessment (if you
live in a tax-free environment then this is not applicable).
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Copies of current
bank statements (last 6 months).
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Bank reference
letter.
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Letter from your
employer confirming date of employment and proof of income.
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Copy of passport /
residence permit (residencia) if you are resident.
If you are
self-employed you will need to produce:
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Latest income tax
declaration (where applicable).
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Copies of the
accounts for the last 2 / 3 years.
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Chartered
Accountants Company report, confirming your annual personal drawings from the
company.
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Copy of your
passport / residence permit (residencia) if you are a resident.
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Personal bank
statements (6 months).
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Bank reference
letter.
Transferring money to Spain
Bank charges and commissions for
transferring money from the account vary considerably from bank to bank. We
recommend that you consider a currency company. |
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