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The simplest way:
If you require finance to be able to purchase your home in Spain, by far the simplest and
quickest way is with a Spanish mortgage, mainly through a bank in Spain.
Mortgages for Foreigners
Purchase cost:
We suggest as a guideline your budget for additional costs should be in the region of 10% of the purchase price.
Often this figure is as low as 8-9%, but it is always better to be on the generous side.
Your purchase costs will include Notary Fees, Purchase / Transfer Tax, Land Value Tax, Registration of Title deeds, transfer costs.
Finance:
If you decide that it is necessary to seek a mortgage to purchase your property in Spain, please
consult the following example:
Mortgage Example
|
House price: |
200 000 Euros |
£148,148
(Converted at £1 = 1'35 €uros) |
Mortgage
amount (70%): |
140 000 Euros |
£103,704
(Converted at £1 = 1'35 €uros) |
|
Interest Rate: |
5,5% |
|
= |
Monthly
repayments
over 15 Years: |
1143.91 Euros Per Month |
£847,34
(Converted at £1 = 1'35 €uros) |
Cost of Mortgage (example)
House valuation
survey: |
348 Euros |
£257,78
(Converted at £1 = 1'35 €uros) |
Mortgage set
up fee (1%): |
1400 Euros |
£1,037.04
(Converted at £1 = 1'35 €uros) |
Notary fees &
taxes for Mortgage: |
2550 Euros |
£1,888,89
(Converted at £1 = 1'35 €uros) |
|
= |
Total cost
of Mortgage: |
4298 Euros |
£3,187.71
(Converted at £1 = 1'35 €uros) |
(The above quotations and figures are supplied to us by
Banco de Credito Balear, for whom we are
an Agent) |
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Questions & Answers
How easy is it for a British or Irish person to get a mortgage in Spain?
These are very straightforward and easy to arrange with a minimum of
fuss.
How do I go about this when I
don't speak Spanish?
We will assist you in every aspect including proposal forms in
English.
What information do bank require?
To see that there is sufficient household income to support the
loan.
What sort of paperwork is required?
Generally speaking this is limited and include proposal form &
last 3-month salary slips & previous years P60.
What if I / we are self-employed?
The last 2 years Trading accounts and last private tax declaration
are required.
How much can we borrow?
For non-residents up to 70% of the purchase price or property valuation.
Do we need any additional security?
No! The property in Spain is the only security required.
How long can the payment period be?
Anything between 5 and 20 years.
What type of mortgages are available?
In Spain the preferred mortgages are 'Capital Repayment' type (interest plus capital) with variable rates. Fixed rate loans and interest only loans are available but are less common.
What is the interest rate at present?
The current interest rate is 5.5%.
Is the rate fixed for whole term?
No, it is fixed for first year, and then calculated annually.
How is the interest rate calculated?
The Spanish Banks use two methods to calculate the repayment interest rates, these are either 'The Euribor'
or 'The average lending rate of major Spanish banks', the lender will then pay between 0.5-1.0% above this rate.
Should I / we wish to pay part or all of the mortgage
up early, are there any penalties?
There are no early redemption penalties, and should only part of the outstanding amount be paid there is flexibility
to either reduce the monthly payments or reduce the remaining term of the mortgage. |
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Avenida Jaime I, No. 90 - Edificio Tobogan – 07180 Santa Ponsa - Mallorca.
Tel: (0034) 971 693967, Fax: (0034) 971 134213, Mob: (0034) 609 630022
(The Association of Professional Real Estate Agents Reg. nº A.P.E.I. 1709) |
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