This page is a follow-on from the ‘Financing Purchases’ web page in the left menu under the bullet point ‘Finance’, so that page may be helpful to you if you are considering funding your purchase with a mortgage.

If you are buying a brand new property then the builders own mortgage provider often provides the best deal and they can provide a quick decision (most builders have financed the build with a mortgage).  If you require a mortgage from another source there are many more banks in Spain than there are in say the UK, so there is a multitude of choices when it comes to securing a mortgage for your Spanish property. It is both quick and easy.

Here at spanish home 4 u we have already made arrangements with a good number of the banks so you can rest assured that if you need a mortgage then it can be secured for you, so long as you meet the banks requirements of course. In this respect your being prepared with your paperwork already organised and with you before you come to Spain will prove to be beneficial to you when you are here, as otherwise you will need to provide the bank with the documents they require after you have returned to the UK – it may be better to bring the papers with you in the first place to get it all sorted out ‘face to face’ whilst you are here in Spain.

In essence the bank will need proof of your earnings, and here is one example of what is required;
• For the Employed: A copy of your last P60 plus copies of your last 3 pay slips. If you require a higher than usual mortgage (say to cover 80% of the value of the property rather than say 70%) you will need the previous years P60 and the bank will conduct an ‘Experian’ type credit check.
• For the Self-Employed: A copy of your last Tax Return plus copies of your last 3 bank statements and if you have a UK mortgage proof that the last 3 payments have been paid (they’ll probably be on your bank statement anyway).
• For Pensioners: P60 (if available) and proof of pension income, plus copies of the last 3 bank statements.

Whilst particular deals will come and they will go, here are examples of what is currently available
• Mortgages to cover up to 80% of the valuation of the property.
• Interest Only available for the first 5 years (then it will become a normal repayment mortgage if the mortgage is not paid off).
• Normal repayment mortgage.
• Terms from 2 years up to 25 years.
• Self-Certified Mortgages: Not currently available in Spain. They used to be, and may become available later, but they are currently not available.

The interest rates are currently
• From just 1% above the Euribor bank rate to 2.5% above the Euribor bank rate, depending upon the type of mortgage and the amount borrowed. The bank rate changes in Spain just as it does in the UK, but at the date this web page was created the Euribor was 4.19%, but please contact us for the up to date rate.

Other points to note
• The bank will require a valuation of the property. This can be achieved in various ways and should take no longer than 4 to 5 days.
• The mortgage decision should normally be made within 2 to 3 weeks.
• You will need a NIE (Foreigners Identification Number) to secure a mortgage from a Spanish bank. You will need a NIE anyway to own a property in Spain, but this comes after the purchase of your property, not before. It is easily obtained and is not a problem – it is only mentioned here in the context of what paperwork is needed to reinforce the message to get as much done when you are here, rather than trying to do it from the UK.

Mortgage Advisor
We have our own mortgage advisor who can help you secure the mortgage you require (subject to terms and conditions from the bank of course). We have helped people where other companies and banks have not been able to, so we can help you, and even if you have purchased a property elsewhere, i.e. not through ourselves, we are still happy to help you secure a mortgage, so please phone us for further details.