Guide to Spanish Mortgages
Property Purchase
At one time this would have been the most common reason for a Spanish mortgage. However, given the recent economic climate, it has moved aside and taken second place to remortgages and equity release.
During the boom times of the Spanish property market it was often possible to get a mortgage based on the Loan-To-Value, however these days most banks will only lend according to the Loan-To-Cost. What this means is that lenders will take the purchase price over and above a valuation figure.
The average maximum LTC or LTV in Spain is currently around 80%, however it is possible to obtain higher loan-to-value's in some cases (up to 100%). These are possible on properties the banks themselves are selling. Many banks have repossessed properties on their books and will loan at a higher ratio. Contact us to find the latest rates and deals available

Remortgage and Equity Release
Many Spanish property owners are looking to refinance their portoflio, either to release capital or obtain a better interest rate. It has often been the case that mortgage lenders in Spain, do NOT decrease their mortgage interest rates in line with the fall in the Euribor. However, many poperty owners have succesfully sought legal advice, and the lenders have reduced their interest rate to a more 'fair' level, given the Euribor rates.
Equity Release and LifeTime mortgages used to be a very common and a useful product for property owners in Spain who where in retirement, or just wanted to release capital. They allowed the owner to either remortgage at a higher borrowing level, or pass the property to the bank in exchange for a cash lump sum and the opportunity to stay in the property for the rest of their lives. Unfortunately these products are becoming less and less common as banks tighten lending requirements, and prefer shorter term mortgage debt, as opposed to lifetime mortgages (where there could be no return for the bank for decades).
Property Fees in Spain

On average, the cost of buying a property in Spain will be in the region of 10 to 15% of the purchase price depending on the complexity of the procedure and the area of Spain in which you are buying.

1.  The Notary fees are established by law and depend on the mortgage value
2.  The Registry Fee/Land registry is usually 0.25% of the value of the mortgage
3.  The Property Tax is 7% of the declared purchase price
4.   The cost of the Property valuation depends on the value of the house usually it is
      from 0.80 to 1.5%
5.   Spanish lenders will charge you an Opening Fee of between 1 and 2%
6.   Stamp Duty (AJD) is paid to the government and is calculated as a percentage of a
      Spanish mortgage (between 0.85% and 1.75%).
Mortgage Application Documentation
Standard Non-resident Document Requirements for Spanish Mortgages

Employed Applicants
3 month's payslips
3 month's bank statements
Employer's reference
Copy of Passport

Self Employed
Self assessment tax return
Accountant’s reference
3 months bank statements
Copy of passport

Resident Document Requirements

Contract of employment stamped by social security
Vida Laboral
La Renta
3 month's nominas
Bank reference

Self Employed
Certificate of Autonomo or Escritura for SL
Gestor reference
1 to 2 years Profit and Loss accounts
La Renta
Last 3 quarterly IVA returns
3 months bank statements

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If you are currently looking for secured finance, whether for purchase, remortgage, or equity release, complete our enquiry form below. An experienced qualified consultant will respond as soon as possible. Our partners, a leading international mortgage finance company, can deal with enquiries for mortgage finance in up to 50 countries.
  • What is the best rate available at the moment ?
  • What loan-to-value can I achieve ?
  • Is it still possible to obtain equity release in Spain ?
  • Which is better international or Spanish banks ?
  • What are the tax implications of buying in Spain ?
  • Am I eligible for a mortgage ?

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