SPANISH MORTGAGE OVERVIEW

Just like any advanced economy Spain has a developed mortgage market with numerous lenders offering a bewildering variety of Spanish mortgages.

Spanish Resident Mortgage

Loan To Value 80%
Maximum Term to age 75
Fixed or Variable Rates

Non-Resident Standard Mortgage

Maximum Loan To Value 70%
Maximum Term 25 years or up to the age of 75
Fixed or Variable Rates

The mortgage calculator

Our online Mortgage calculator will work out your monthly repayments and give you an idea of how much you could borrow. Simply enter the required details below and hit "Calculate Payments".

Calculate Payments
Your Monthly Repayments: €15,000

Typical Spanish mortgage costs & fees

Some banks will add these costs and fees to your mortgage, however they will not allow the total amount of borrowing to go over the maximum loan to value percentage.

Bank Arrangement Fee

Between 0.5% - 1.5% of the loan amount

Property Valuation Fee

Typically between €300 - €500

Taxes

Taxes are advised on application

Legal Fee

Mortgage legal fees €600

Notary Fee

The Notary fee is generally around €900

Life Insurance

Life insurance premiums vary depending on age, health and term of policy

Standard mortgage application documentation requirements

When applying for a mortgage, there are several documents both your mortgage adviser and your mortgage lender will need to see. These documents confirm who you are and provide proof of your income. Before a mortgage appointment, it is a good idea to have all these documents to hand. This will enable your mortgage adviser to provide mortgage advice based on your exact personal circumstances as quickly as possible.

Passport and/or National Identity Document


Self-Employed

Employed

You will need "Proof of Identity" documentation in order to apply for a mortgage. This is simply to confirm that you are who you say you are. This may take the form of a "Passport" and/or other "National Identity Documentation".

Passport and/or National Identity Document


Self-Employed

Employed

NIE is translated as the Foreigner's Identification Number (or Número de Identificación de Extranjero, NIE number). The NIE number is a legal number that is assigned by the Spanish National Police to foreign residents who do not have Spanish citizenship. This number allows foreign nationals to carry out legal activities in Spain.

Tax Declaration (last 2 years) P60 or Return


Self-Employed

Employed

A mortgage lender will want to look at any tax returns to verify the borrower's income. A P60 or relevant tax return will be needed in order to satisfy this requirement.

Last 3 Salary Pay Slips


Self-Employed

Employed

A mortgage lender will want to see your last 3 pay slips to verify that your stated salary is correct.

Self-Employed Proof Of Income


Self-Employed

Employed

Self-employed people will need to provide proof of income tax payments made during the current financial year along with a declaration of any assets.

Credit Report (Experian)


Self-Employed

Employed

Your credit report, sometimes referred to as your credit file or credit history, is a detailed record of all your credit and debt accounts. It contains information about how much debt you have, how often you pay your credit and debt bills on time, and how long you have been managing your credit accounts.

Letter From Accountant


Self-Employed

Employed

Self-employed mortgage applicants may well be asked to provide accounts prepared by a certified or chartered accountant, to prove your income and enable the lender to make a decision. How those accounts are presented can have a major impact on how much you might be able to borrow.

Bank Statements


Self-Employed

Employed

You will need to supply the last 6 months bank statements from all accounts, including other savings or investments accounts you may have. The mortgage lender will want to know everything about your current financial situation. Among other things, they want to know how much money you have in the bank, and how long it has been in there. This is known as asset verification. This is the primary reason why mortgage lenders need to look at your bank statements. They want to ensure that you have enough money in your account(s) to cover your down payment, your closing costs, and (in some cases) the first few mortgage payments.

Self-Employed Annual Statement of Accounts


Self-Employed

Employed

This is a technical document that includes all the financial statements and disclosures during that financial year. You will need to provide this documentation for the last 2 years and include any profit or loss accounts.

Contract of Employment


Self-Employed

Employed

Before any lender will agree to offer you a mortgage, they will want to see evidence that you will be able to make your monthly payments for the duration of your deal. That means that you will need to provide proof that you have regular guaranteed income in the form of an employment contract or a letter from your employer confirming your employment status.

Current Mortgage(s)


Self-Employed

Employed

If you are trying to secure a second mortgage, the lender is going to closely evaluate your personal and financial situations to determine whether to give you the loan. There are certain things that lenders like to see when looking at a borrower but initially you will need to present your latest mortgage statement.

Current Property Rental Agreement


Self-Employed

Employed

A rental agreement is a contract, usually written, between the owner of a property and a renter who desires to have temporary possession of the property as distinguished from a lease which is more typically for a fixed term.

Proof Of Other Income


Self-Employed

Employed

Any other incomes that you have will need to be taken into account and proof of such incomes will need to be presented. This may be income from property rentals, investments, secondary work etc

Pensioners require a letter from the company paying the pension confirming the annual income paid to the pensioner(s)

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