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Mortgages and Finance for Spanish Property
Direct Auctions work with several established mortgage and financial houses such as the Marbella Mortgage Company who are based in San Pedro, Marbella. All of them are legal and professional.
There are a number of excellent products available for buyers and especcially tailored for the non - residental market as spanish banks lower their regulations to allow a wider choice of products. From the traditional Capital and Repayment mortgages to Interest only and Self Certification mortgages, there is a choice for everyone.
The length of a mortgage can be up to 40 years depending on the applicants age, and the interest rates are competetive.
Direct Auctions recommends buyers to be pre financed before attending an auction, therefore you will know how much you have to spend on a property. Pre - financing does not cost anything, there is nothing to pay for up front. Your paperwork as listed below, will need to be submitted to a bank for final approval, but the finance house will work on your file with photocopies of your documents and advise you how much you can borrow. You will need a valuation of the property you wish to buy which would be done once the price is agreed. Click here to request a personalized mortgage offer
Non - resident mortgages can be granted up to 80% of the property value - click here to find out how properties are valued in Spain.
Documentation required
1. Copy of passport
2. Last P60 (employed applicants)
3. Last 3 payslips (employed applicants)
4. Experian / Equifax credit report
5. Last 3 bank statements
5. Last tax return (self-employed)
Other information required would be marital status, other assets, other mortgages and your profession.
To request a financial advisor to contact you, please click here
Interest Charged
The interest charged on a mortgage in Spain is usually adjusted on an annual basis. This is beacause interes rates are set in conjunction with the Euribor rate. This rate is attached to inflation and is adjusted annually, although is fluctuating all the time. If you happen to take a mortgage when the Euribor is up, then your first years payments will be set at that level. If however you get a lower Euribor rate, then your payments will be less each month. Your payments will increase or decrease annually in accordance with the Euribor rate at that time. In general terms only mortgage interest rates are the Euribor +1%.
Capital and Repayment
This where the monthly payments pay off a portion of the loan borrowed and the interest charged on it. At the end of the term, the mortgage will be totally paid off.
Interest Only
This is where you pay the interest payments only for a specified period of time ie 5 or 10 years. The mortgage will then revert to the capital and repayment scheme and you will find the capital payements higher than if you paid them for the whole period of the mortgage in order to catch up. This mortgage is good if you need lower initial payments on a property.
Fixed Mortgage
This is where the payments are fixed at a low rate for the first year or couple of years. Again useful if you need lower initial payments.
Payment Examples
Contact us for further information |
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