Obtaining a Mortgage in Spain financial advice Granada Spain.  Help and information
currencies.co.uk – foreign exchange specialists

Obtaining a Mortgage in Spain financial advice Granada Spain. Help and information

Contact Viva-Granada
Advertise
Granada Costa Tropical Directory
 
 Members Sign In
User ID
Password
(forgot password
Become a Free Member

1776 Members
10 People online

 Search Viva

Alicante Almeria
Malaga Murcia

 Directory & Services

 Granada Map
 Granada Forums
 Granada Reviews
 What's on in Granada
 Granada Travel Mate
 Spanish Phrase Book
 TV Guide

 Contact Us
 Advertise
 Web Sites
 Estate & Rental Agents

 Sponsored Links

Go Back or Financial Advice in up to Granada Financial Advice

 Obtaining a Mortgage in Spain, Granada Financial Advice 


Member Reviews

Not yet reviewed [Add your own review]

Details

If you are Non Resident of Spain most Spanish banks will be willing to lend you up to 70% of the valuation price. However, certain lenders will advance 80% and there are even specialist schemes offering up to 90%.

If you are Resident in Spain the default maximum that some banks will lend you is80% of the valuation but, for First Time Buyers, 100% funding is available.

In all cases the bank will need proof that you have sufficient income to make the monthly repayments.


‘Self Certification’ mortgages, where no proof of income is required, are available to 65% for a purchase and 60% for a remortgage/refinance.

‘Interest o­nly’ mortgages, an important protective product for Spain, are now widely available with IO terms up to 30 years. The normal availability is between 5 and 15 years.

Loan terms can now be up to 40 years or age 80.

Q.What do we do to get the best loan possible?

A. You have 2 choices; shop around or use a specialist mortgage broker.


Be mindful though that the lending system in Spain, as with the process and
risks associated with purchasing a property here, are very different
than the UK. Caution is warranted and, for that reason alone, be sure
you are using an independent solicitor and independent Financial
Advisor to cross check your actions.

Generally, costs are much of a muchness but bear in mind that ‘Interest o­nly’
mortgages
are very important for general financial planning and protection and it
is mainly the international banks that offer these.  

  1. Start up commission: this will range from 0.5% to 2% of the loan.
  1. Reference rate: the banks use different reference rates. The most
    transparent reference rate is the EURIBOR, which is published daily in all
    thenewspapers and o­n the internet.
  1. Differential: This is the percentage that the bank charges o­n top
    of the reference rate. If the reference rate is Euribor the differential
    applied will be between 0.75% and 2%.
  1. Early repayment commission. This will range from 0% to 1%.

Regardless of which bank you or your broker select, you need to includethe following extraexpenses;

  1. Valuation fee. The bank will charge you for the valuation which
    will be actioned by an independent company chosen by the bank. The charge will be a minimum 250 euros and up to 0.2% of the valuation
    figure.
  2. Notary fee for the mortgage deed. Allow 0.5% of the loan as a maximum.
  3. Registrars fee for registration of the mortgage deed. Normally 250 euros.
  4. AJD mortgage tax. Allow 1.6% of the mortgage sum.

When canceling the mortgage, apart from the cancellation commission to the bank, you need to count o­n the following fees to complete the documentation:

  1. Notary fee for the cancellation deed. Normally circa 0.5% of the loan.
  2. Registrar’s fee. Allow 250 euros.

Be aware also that if you are buying a building under construction, the builder
has sometimes already set up a construction take mortgage that you can choose to take cover.
However,
whilst this will save you certain costs as above to the tune of 2%, the
mortgage will unlikely offer ‘Interest o­nly’ which is a key product to
protect you in Spain.

ROSE FINANCIAL SERVICES

 


financial advice for Obtaining a Mortgage in Spain is just a small part of Viva-Granada.com. Discover Granada with the history, local information, property sales and holiday listings at Viva-Granada.com
Copyright Viva-Granada.com, Total Viva Ltd. 2003 to 2017. Please read our terms and conditions
Page Generation: 0.064 Seconds
Financial Advice in Granada, Granada Financial Advice Spain
Obtaining a Mortgage in Spain financial advice Granada Spain. Help and information, Granada Spain
Site Map