Mortgages

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Applying for a Mortgage (Hipoteca)

If you need to apply for a mortgage, we will introduce you to the local banks and help you find the most attractive deal. Applying for a mortgage in Spain is a simple and straightforward process as follows: 

  1. You need to open a bank account                                          

  2. You  need to prove that you have sufficient income or funds to pay the mortgage by supplying documents that show your income. 

  3. The mortgage offered will be based on a valuation (tasacíon) of the property. Each bank has its own preferred company to conduct the valuation. The value is based upon:

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    no. of square metres

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    amount of natural light

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    views from the property

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    proximity to the coast

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    general state of repair

     

  4. You will be offered a percentage of the valuation as follows:

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    for residents 80%

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    for non-residents 70%

    Both residents and non-residents can apply for 10% more on top of their allowance if they are willing to pay for a special insurance policy to cover this extra amount borrowed.

     

  5. The terms and conditions of your mortgage will differ slightly between banks but generally speaking the following will apply

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    mortgage term dependent upon age  - from 5 to 30 years

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    initial interest will be fixed for 1 year

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    the rate thereinafter is usually 1% above the euribor (European base rate)

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    each year on the anniversary of your mortgage you may off a lump sum