How can I get a Spanish Mortgage ?

[BusterBloodvessel]

I have lived and woked in Spain for almost 8 years and would like to take advantage of the current low prices to move out of rented accomodation and get my foot on the first rung of the property ladder.
I have about 22'000 Euros in savings, but the problem for me is that I am only able to prove half of my income, as the other half is in the black. This is an issue that I have with my employer, but unfortunately he will not move on this and with jobs being so scarce at the moment I am not really in a position to challenge him.
I have never applied for a mortgage before, but I was wondering how I should go about this given my predicament.

[MickeyB]

Unless I am mistaken, you can only get a mortgage offer based on the value of your delared earnings - not black money.

[sharonw]

Hi,

Applying for a mortgage is quite straightforward, the legwork bit is knowing which lender to approach that suits your criteria and requirements. All mortgages are based on your declarable income and lenders will want to see documentation relating to income, tax and social security as well as bank statements and credit report. The amount calculated depends on a percentage of your net income less any debt commitments you may have. Costs involved For purchasing and mortgaging are IRO 13-14%.

So in essence, depending on what half of your income constitutes and what property price range you are looking at plus considering your savings, this will determine your borrowing capacity.

Kind Regards
Sharon

[BusterBloodvessel]

My declarable income varies from month to month, but comes out at around 11'000 Euros per year. I'm guessing that I could argue that my living expenses could be deducted from the earnings that I have 'in the black', or do I need to show that aswell ? I'm guessing my rental costs are not included here aswell given that I won't be paying them as and when I get a mortgage ?

[sharonw]

Hi,

Any fixed commitments are considered against your declarable income - these consist of any mortgages, car loans, personal loans or credit card balances you may have. Rental payment is not included as this will be swapped like for like.

Kind Regards
Sharon