Mortgages

Notes for property purchase in Spain

Overseas mortgages Lenders in Spain will not take into consideration any proposed rental income from the property for mortgage calculations.

There are no non status/self certification mortgages available in Spain. All loans will require proof of income and that means that if you are employed you will be required to provide copies of proof of income with your last three months payslips and copies of your latest P60/Employers references togehter with your last 6 months personal bank statements.

If you are self employed you will be required to provide copies of your last three years audited accounts and copies of both your last 12 months business and last 6 months personal bank statements. Your loan will only be offered in Euros.

 

As with almost all overseas mortgages the lender will have a set criteria on which to base the affordability of the loan. The lender will base this on your repayments not exceeding you net montly income by more than 35%. Any exisiting liabilities will be added to the equation and these include bank loans, personal loan and any rental or mortgage payments on your existing property. The lender will not lend on the security of any newly built property until it has been officialy registered in your name.

For a property that is to be constructed and paid for in instalmants, the land must be purchased from your own funds and also registered in your own name(s) and not the builder/developer's. This is in order for the proposed lender to obtaind a legal charge against this and also to enable them to secure funds against it. Without this legal registration the lender will not release any funds until the property is fully constructed and this will mean upon completion of the total building works.

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