12 Jun Bank mortgage loans
Now that you have decided to fulfill the dream of living and living in Spain and have found a home that you want to buy, you need a bank contact. There are many reputable banks along the Costa del Sol that you can choose from.
We help you choose a bank where you can handle all your banking business and which also offers mortgage loans with good terms. We have worked with that bank for over 30 years and we put you in touch with the bank which also has English speaking staff in the office. Safe and comfortable to have to experience some language problems.
Spanish mortgage loan for property purchase in Spain
It is entirely possible to borrow money for property purchases from a Spanish bank, whether you are a resident or not. If you choose to finance the deal with a bank loan in your home country, the security for the loan must be your property or other real security in your home country. If you choose to finance part of the purchase with a mortgage loan in Spain, it is required that your Spanish home be put up as collateral for the loan. You can never mortgage a property that is not located in Spain. If you use the bank I recommend, you can also get an advance notice if you get a mortgage loan without having decided which property you will buy. Contact me and I will put you in touch with the bank.
Loan conditions
When buying a house for you who have the home as a holiday home, it is normal that you can borrow between 60-70 percent of the bank’s valuation of the house. Note that this percentage is on the lowest value of the selling price and the bank’s valuation. You must prove your income with the latest income tax return, your debts and assets in your home country. The repayment period is a maximum of 25 years, depending on the borrower’s age. Spanish banks have an upper limit for the borrower of 75 years for the repayment of the loan. This means that a person who is 60 years old and applies for a home loan gets a maximum of 15 years of amortization period. If you are permanently resident in Spain and have a residence, you can borrow up to 70 percent of the valuation if you have regular income.
To apply for a loan in a Spanish bank, you need the following documentation:
- Passport
- The most recent income declaration and tax notice + the three most recent salary statements
- If self-employed: financial statements
- Provide information on other properties (market value) and loans (remaining amount and monthly payments)
- Credit information
- Account statement showing any loans and monthly payments
- Account statements where any savings, investments, pension funds are visible
