NB: if you require a mortgage above 70% the bank will ask you for a credit report which you can obtain at www.creditexpert.co.uk Please do not hesitate to contact us should you have any further queries.
The Spanish mortgage industry is still in its infancy compared with the USA and UK. As recently as 25 years ago, mortgages were almost unknown in Spain. However with Spanish banks now having an international outlook, the market here is now very sophisticated and the banks are becoming very innovative in their product range.
The first thing to realise is that, Spanish banks are probably more flexible than their British counterparts with mortgages being granted to persons up to the age of 75 years here in Spain.
What Spanish bank managers like to see are “ingresos”, ie, a steady income coming regularly into the account. So a good set of accounts is necessary as they also like to see proof of income, ie, payslips (nominas), tax returns, pensions, dividends etc… After that the procedure is very similar to the UK.
Survey fee (banks here insist on a pretty comprehensive survey being taken out, there are specialist firms who carry these out and the normal cost is between 250 and 350 euros.
As mentioned before, mortgages in Spain are relatively new, but the product range is now almost the same as the UK.
Types of mortgage always ask your bank manager first as these may not be on offer at His/Her banks.
Terms of mortgages vary from bank to bank, but generally a resident of Spain (with Tarjeta de Residencia) can obtain a loan of up to 50 years or that it will end before the person is 75. Persons living in Spain for more than 183 days per annum, but without Tarjeta de Residencia are classed as residents for tax purposes but not as residents for mortgages, so they are generally limited to 40 year repayment periods.
Loans are granted up to 70% (in sum cases even higher) of valuation or of the contract purchase price, the valuer is usually fairly generous so this tends to be a minimum figure. If you require a mortgage above 70% the bank would need you to supply a credit check. www.creditexpert.co.uk. A lot also depends on the relationship the bank manager has with his client or the estate agent or developer selling the property.
It is very important to have the formal mortgage offer in written form, if the bank is unable to provide this in English get a translation of it when ever possible.
If your unsure of anything please ask as we can find the right mortgage for you.