What supporting documents are required for a Spanish mortgage?

As a basic guideline the following documents are required to verify your income:

• A copy of your last P60
• Copies of your last 3 payslips
• Copies of your last three months’ bank statements
• Experian report (credit agency reference confirming if you have any debts)

If you are self-employed you will need:

• Copies of the last two years’ annual accounts
• Copies of the last two years’ Income Tax Calculations issued by the Inland Revenue
• Copies of the last six months’ bank statements
• Experian report (credit agency reference confirming if you have any debts)

This is not an exhaustive list and additional documents may be required.

Can I Re-mortgage?

Due to the costs and government taxes in re-mortgaging we advise our clients to obtain the most suitable mortgage conditions that are applying for the term of the loan. Re-mortgage costs can typically be 4-5% of the loan amount. Spanish Linkt is able to offer re-mortgage and equity release products with minimum costs. We can make a no obligation check to see if a re-mortgage is a suitable and viable option. Realize that re-mortgage has to be for changing an existing mortgage or for house orientated costs etc.

What about Developers Mortgages?

We always recommend you to check on the details and costs of the mortgage offered to you by a developer. Typically the developer can subrogate (transfer) the existing loan on the property to the buyer. However, the development will have the same mortgage product for each property – which may not be suitable for all purchasers. We offer a no obligation search against the whole of the Spanish non-resident mortgage market to ensure you are able to select the most appropriate mortgage product suiting your needs.

How much can I borrow?

In general, we can arrange, for Spanish residents and non-residents, a Spanish mortgage up to a maximum of 60%  and in special cases 70%, loan to value, (This is of the purchase price or valuation, whichever is the lowest). There are considerable differences between lending abroad and raising finance in the UK. Whilst the UK system applies income multiples (e.g. 3 x your gross income) the European method is based on your ability to repay the loan and uses therefor other standards. Even within the banking world in Spain different methods can be used.

But most European banks lend on the basis that your monthly repayments in the total of all your financial loans and mortgages (capital and interest) should not exceed between 35% and 40% of your net monthly disposable income. 

There are ofcourse many questions and isues to be answered when coming to Spain. Whether it is only for a part-time stay or permanent residence.

The best advice is to always consult a lawyer when purchasing property. Spanish Link can help you find a English spoken lawyer in the area you are going to, who is knowledgable about this type of business.

Also the, every year, renewed edition of "You and the law in Spain" by David Searl is a "must" buy! It is available in most international airports in Spain and in many bookstores. Our advice is to buy this book when arriving in Spain at your arrival airport before you go anywhere else. This book is a fantastic guidance but can not replace in any way the personal advice of a lawyer!

For You and the law in Spain see https://www.santanabooks.com