How To Guides
- Childbirth & Education
- Legal Formalities
- Pensions & Benefits
- Property & Accommodation
Did you know...?
... Telefonica are NOT the only service provider of Telephone Lines, Internet Access or Mobile Phones?
Tumbit recommends Telitec Communications. Find out how Telitec Communications can help you here!
- Airports and Airlines Spain
- Paramount Theme Park Murcia Spain
- Corvera International Airport Murcia Spain
- USD weekly currency update- 27 May 2016
- When Expat Eyes Are Smiling
- Meet Wincham at The Homes, Gardens & Lifestyle Show, Calpe
- QROPS 2014
- Spain Increases IHT in Valencia & Murcia
- Removals to Spain v Exports from Spain
- The Charm of Seville
- Gibraltar Relations
- Retiro Park : Madrid
- Wincham announce opening of Marbella office
- Community Insurance in Spain
- Calendar Girls
- Considerations when Insuring your Boat in Spain
- QROPS – HMRC Introduces changes that create havoc in the market place
- QROPS – All Change From April 2012
Applying for an Overseas Mortgage - Some FAQ's
Why choose a broker?<
As independent mortgage brokers, we have access to every UK mortgage lender and a wide range of overseas lenders, many of which have specialist schemes and special deals.
We can provide guidance on the legal and technical aspects of property purchases in Spain; review and discuss all of the financial options available to you to ensure that you are fully informed when making such a financial commitment.
How much can I borrow?<
There are considerable differences between lending abroad and raising finance in the UK. Whilst the UK system applies income multiples (i.e. 3 x your gross income) the European view is based on your ability to repay the loan. Most European banks lend on the basis that your total monthly repayments (capital and interest) should not exceed 35% of your net monthly disposable income.
Many clients find that they cannot match up to the strict Spanish lending criteria. Due to our flexibility we are often able to help our clients with this issue and if you need any assistance please do not hesitate to contact us.
Generally, we can arrange a Spanish mortgage up to a maximum of 70% of the lower of the value or purchase price of the property.
How much will it cost me?<
As a general guide, the cost associated with a purchase of a previously occupied property equates to approximately 10% of its value. The cost associated with New Build property is approximately 12.5%.
Our systems can calculate the cost more accurately by using information on the property value and mortgage required. Please feel free to contact us for further details.
How long will it take?<
Each individual case is different. However as a general guide, the time from mortgage application to the funds arriving to you typically range from seven to eight weeks.
Obtaining a mortgage quotation, subject to the lender's approval, that you know is affordable before looking at properties will save you time, money and frustration. This will help to eliminate costly delays, the potential for losing your property, your cash deposit and gazumping.
What supporting documents are required with a mortgage application?<
As a basic guideline the following documents are needed in order to verify your income:
• A copy of your last P60
• Copies of your last 3 payslips
• A copy of your Inland Revenue Tax Calculation if you have one
However, If you are self-employed you will need:
• Copies of the last three years' annual accounts
• Copies of the last three years' Income Tax Calculations issued by the Inland Revenue
• Copies of the last six months bank statements.
This is not an exhaustive list and additional documents may be required. For more detailed advice please contact us via the link to our dedicated page on Tumbit.com above.
More Blogs By Michelle Thomas
- Considerations when buying a Cave House in Spain
- Taxes associated with Buying & Selling Property
- The Risk of Rainfall Erosion to Your Property in Spain
- Lifetime Loans & Equity Release
- The ITE Property Inspection Certificate
- Can I Reclaim Any Capital Gains Tax I May Have Overpaid ?
- Top 10 Features of a low maintenance home in Spain
- Flat Roof Problems on Spanish Properties
- 10 Features to check when buying Spanish property
- How and where to Register your Property
- What is a Cedula, and why do I need one ?
- 5 Ways to Reduce your Spanish Electricity Bill