Spanish Mortgages Assistance and Advice

International Financial Planning

Spanish Mortgage Advice and Assistance

Spanish Mortgages

Assistance in Dealing with Spanish Banks in relation to Spanish Mortgages

Our Spanish lawyers and "in-house" English Solicitor can assist our clients if requested in dealing with banks and building societies in relation to Spanish mortgages on their property purchases in Spain. (Although as lawyers we do not provide financial advice, this is provided by the banks and qualified financial advisors).

Our clients choose which banks or building societies that they wish to use. Below is an example of mortgage rates and the documents required to apply for a Spanish mortgage using the Spanish bank Banesto as an example:

A brief explanation about Banesto mortgages for non residents from EEC member states: They can finance up to 70% of the purchase price if the mortgage is lower than 400.000 euros. If the amount required is higher Banesto would give a maximum of 60% of the purchase price. The valuation of the property must reach at least the purchase price. The mortgage conditions are similar to the ones for Spanish resident: Euribor + 1 to be revised once a year.

Euribor is at the moment aprox. 4,50%. The client would have to pay per every 10.000 euros ( calculated at 5,50%) 56.78 euros/month for a 30 years mortgage; 61.41 euros/month for 25 years mortgage, and 68.19 euros/month for 20 years mortgage.

The mortgage length is until 30 years, but the mortgage length plus the client age can not exceed 75 years.

The documents the Spanish bank would to see prior to approving the Spanish mortgage are the following:

- land register details ( nota simple) of the property.

- passports copies.

- last 3 salary sheets.

- income tax ( p-60 for English residents).

- Banesto form mortgage aplication.

- Last months bank statements.

- An introductory letter from their bank in the UK is usually requested.

- For mortgages higher than 250.000 euros a credit report is required ( Experian, Credit bureau or Equifax).

- If the client owns a company, we will need official company balance and an introductory letter from the company accountants.

Once the Spanish bank has the above documentation they ask their valuer to prepare a free valuation of the Spanish property and then they would send a Spanish mortgage proposal to the client. The client will know whether the Spanish mortgage has been authorised within about 3 to 4 days from the valuation.

If you would like any further legal information on buying properties in Spain please do not hesitate to contact our "in-house" English Solicitor, Des Sparkes who is licensed to practise in Spain with Spanish lawyers.

You can email him on his direct email: des@sparkeslawyers.com or reach him on his direct telephone number 00 34 600 670 688.