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How to Apply for a Mortgage in Spain

- Updated: 01/04/2013
How to Apply for a Mortgage in Spain

As soon as you apply for your Mortgage in Spain, it is important to have copies of all relevant documents with you. As an employee you need a copy of your passport, the payslips and the bank statements from the last three months, the last tax declaration (P60 document if you are from the UK), the completed application forms for the mortgage and a copy of the Land Registry Certificate ( Nota simple ) confirming current ownership and showing any mortgages or embargo's on the property. If you are Autonomo (self-employed) you need almost the same documents but instead of the tax-declaration you have to show your VAT and income tax returns of the last two years as well as your balance sheets.

The relevant Bank will send an Assesor to your property to evaluate it’s value. This consists of a detailed report to determine the materials & quality of construction, the location, state of repair etc... of the property and its estimated market value. This carries a cost but you will be informed about this before it is undertaken. Usually the valuation of your Spanish property costs Around 300 Euros but can vary slightly depending on the size of the property and is roughly 0,1% of the property estimated value.

The Spanish mortgage process won't take much longer than a month. If you want to take a mortgage in Spain the Bank will expect you to take out Spanish property insurance that needs to cover fire and Third Party responsibility. It is also a requirement to contract a Life insurance.

The repayment period of your Spanish mortgage is between 10 and 30 years. It is possible that a resident can choose a longer term than a non-resident. If you want to pay your mortgage back before the time ends, be careful of redemption penalties that are known in Spain as early repayment commissions. These penalties are applied by almost every financial institution and can fluctuate between 0,5 - 1,5%

Comment on this Article

Peter : Whilst technically speaking, it is possible to get a 100% Mortgage as a Non-Resident of Spoain (especially if you have good supporting documentation), this is usually either fraut with problems, or not a very cost-effective option to consider in the long-run. For one, most of the Banks to offer this option will only only it against their own portfolio of existing properties - which have all had the asking price loaded to ensure they take sufficient profit. If you can find any way to raise a small deposit (and don't forget the fees ! ) this will allow you a greater degree of freedom to negotiate a much better deal for yourself. Please try not to blinkered into thinking that 100% represents a good deal for you - in almost every case it will not.
Tumbit - Admin - Tue 4th Feb 2014
I don't have a significant deposit to offer towards property and was looking at the 100% mortgage option in Spain but i'm a UK resident. From reading your article i gather this is not possible but if I was to find a property on the market priced at 70% of its actual value, i'd be able to secure a mortgage or have i got it completely wrong ?
Peter Ward - Tue 4th Feb 2014
I was under the impression that most mortgage appliers applied before they had found a suitable property.
C.v. Warburton - Thu 16th Dec 2010