A Spanish
mortgage is an attractive choice for many people looking
to buy a property in Spain. Spanish banks are very keen
to lend to buyers, and competition between the lenders
is quite fierce. For this reason, it is good to shop around
as the first rate the bank offers a customer for a mortgage
is often negotiable! Banks will typically lend up to 80%
of the value of the property as a mortgage. Interest rates
can start from as little as 2.9% though generally you
will expect to pay between 3.4%-3.9%, still very low compared
to current UK rates. There is talk of a rise in these
rates in the future so now is the time to buy!
In order
to qualify for a mortgage, you will need to be able to
produce proof your ability to keep up repayments. Much
the same as the UK, you will need to provide 3 months'
pay slips and sometimes also 6 months' bank statements.
If you are self-employed, you will need copies of your
accounts for the last three years (together with an auditor's
stamp), 12 month's business bank statements and also your
last 6 month's personal bank statements. All people wishing
to buy or sell property in Spain must have their NIE (Numero
de Identificacion para Extranjeros) number. You will need
this to open an account and to get a mortgage.
There are
no buy-to-let mortgages in Spain. If you are buying as
an investment, or you simply want to let out your home
while you aren't using it, then you can do so on the normal
residential mortgage.
Here at
Si Villas! we also have independent mortgage brokers in
Spain who are committed to finding you the best deal.
They will go between the lenders for you to negotiate
with them and get you the best deal possible. They will
also handle all of the paperwork, taking much of the strain
out of arranging your mortgage. The borrowings can be
agreed before you leave the UK to view your chosen properties,
so that once you arrive in Spain, you have a full understanding
of exactly how much you want to spend on a Spanish home.
We will also help with arranging the necessary paper work
to obtain you NIE number. Call us today to discuss your
requirements, or any questions you have.
