Mortgages in Spain

When looking to purchase your dream house in Spain then getting a Spanish mortgage could not be simpler. Some people just do not have the full amount of capital needed thus a Spanish mortgage could be the solution in order to own your perfect property in Spain.

The increasingly developing mortgage market in Spain ensures that numerous lenders are available from banks and savings banks. The base interest rate on mortgages in Spain are calculated by the European Central Bank (Euribor) however the charges and terms vastly vary from one bank to another and even from branch to branch. Presenting offers from one bank to another can have a huge impact on the charges and terms which can then ensure an improvement that suits your needs. International banks also offer mortgages in Spain including various British banks that sometimes make it more comfortable.

In order to obtain a mortgage from a bank, various information is required as there are no non-status/self certification facilities available in Spain as at this time but for sure, they will be within a short period of time. Basically once a NIE (Numero de identfcation para Extranjeros) number has been obtained then the bank merely requires a proof of ability to pay the mortgage. This ranges from wages slips and bank statements to business banks statements if you are self employed. Unfortunately proof of income from house rentals is not taken into account.

The Spanish mortgage market has improved over recent years with the number of options on offer continuously increasing. The majority of mortgages generally available are variable rate mortgages, meaning that the repayments will differ in conjunction with the rate set by Euribor. Fixed rate mortgages are available however the interest rates tend to be a little more expensive. Spanish Mortgages are attached to the actual property and written into the deeds so sometimes existing mortgages are attached to resale property.

Spanish mortgages are available over 5, 10, 15, 20 or even 30 years and generally cover 60-80% of the property price, however some banks will cover the whole 100%. This ensures that when buying that dream property approx only 20% of the capital is needed as a deposit which is then followed by 10% to cover the buying costs.

The interest rate set by Euribor is currently 4.7% and is generally reviewed once a year however this can be improved upon by some mortgage providers as competition between them is fierce. This rate is considerably lower than the UK making purchasing the ideal Spanish property more realistic. The Spanish property market also offers a favorable early write off fee which is sometimes as low as 1%.

Once you have decided on the perfect property for you in Spain then arranging a mortgage is relatively a quick procedure. The criteria for obtaining a mortgage Spain is less strict than the UK ensuring quicker arrangements. Obtaining a mortgage generally takes 2-6 weeks with 4 being the average.

When aiming to buy that perfect Spanish home either as a full time base or simply a holiday home then the favorable conditions offered from Spanish mortgages make that dream become more of a reality. The low interest rates offered in Spain offer no competition to the UK market due to the competition between brokers. Arranging a mortgage could not be simpler and due to the flexibility obtaining a Spanish mortgage becomes a simple and stress free option.