How to get a loan in Spanish bank
You can get your future house financed by Spanish Bank, find out how.
How to request a mortgage in Spain in 10 questions
How to request mortgage in Spain
Well before finally finding the property of your dreams in Spain, the question of the mortgagee comes to light. As of course before finally buying the magnificent property situated exactly in the region that is so close to your heart, it is of interest to know what amounts can be made available to you. To answer all of your questions, we have interviewed a professional bank loan specialist, Benoit Jailloux, a Frenchman who himself is based in Andalusia.
Mortgage specialist in Spain
Languages spoken: French, English, Spanish
The requirements depend on the region of the world where one comes from, nethertheless, overall, 5 types of documents are required:
- A piece of identification
- A statement of your income over the last 2 years: your tax returns as well as the details of all of your possible incomes, (retirement pay, pensions, dividends)
- Existing debits (cars, mortgages, lease payments)
- The assets or properties in your possession - An extract of your main bank accounts from the last 6 months
When the choice of the property has been made, the bank can then carry out the feasibility study for the mortgage. In order to do this, all of the documents mentioned above must be assembled. Nethertheless, with the income and debit data the bank can provide an agreement in principal, that will thus allow you to be aware of the amounts that you could be made available to you for the acquisition of your property.
For an agreement in principal, it is necessary to allow 1-2 days.
For a binding agreement, if absolutely all of the documents have been gathered together, 15 days maximum.
As soon as the request for a mortgage has been accepted, the bank will make a mandatory evaluation of the value of the house. The chargeable evaluation is consequently included in the overhead expenses of the mortgage.
The majority of the major banks work with foreigners, some have, moreover, developed specific programmes for non-residents to obtain mortgages. The banks currently have the tendency to offer fixed rate loans. The rate depends on banking products, (life insurance, fire insurance...), and of course, your income. However, no overall rate can be given.
Overall the banks cover 70% of the purchase price for foreigners coming from Europe and the United States, for the other regions of the world this can sometimes go down to 50%. Depending on the amount of the property, the rules can differ, the banks therefore examine the situation on a case by case basis.
For example, for a property of 120 000 euros, if one has 37 000 euros of funds, the bank could loan 83 000 euros, thus 70% over a period of 20 years.
In principal, there is not a minimum amount, however the golden rule for everyone remains that the overall debit cannot be greater than 30% of total income.
Usually loans are granted for a period of up to 20 years, the age limit is 75 years old: thus, the maximum age would be 55 years of age for a loan over 20 years.
The overall costs are in the order of 12% of the value of the subject of the real-estate, with this including:
Therefore, refine your research with a Properstar, send your requests for information to agencies, (who are all professionals), also read this very useful article on how to find a professional and trustworthy estate agency, and do not hesitate to contact me for guidance in the mortgage field.
You can already arrange all of the necessary documents for the set-up of a mortgage, this will allow you to act quickly when you have found the house of your dreams!