How do you get a mortgage for a house in Spain?

Is it easy to get a mortgage in Spain?

Spain has a very competitive mortgage market and as a result, there’s plenty to choose from when it comes to loans. However, non-residents buying Spanish property with a mortgage have more limited access to loan types and conditions.

How much deposit do I need for a mortgage in Spain?

For a Spanish mortgage, you will generally need a minimum deposit of 30% of the property’s purchase price, with borrowing rates currently starting around 2% (lower for premium clients). “The maximum mortgage for non-residents is 70% of the purchase price or valuation, usually depending on which is lower.

How much can I borrow to buy a house in Spain?

The biggest difference between residential and non-residential loans is the maximum loan-to-value (LTV) that banks will allow. Residents can generally borrow up to 80% of the property’s assessed value. Non-residents are limited to 60–70% LTV, depending on the mortgage type.

THIS IS EXCITING:  How many Latin Americans are in Spain?

What do you need for mortgage in Spain?

What documents are needed to apply for a mortgage in Spain?

  1. a copy of your passport.
  2. a NIE number: this is the basic identification number you will need to carry out any legal procedure in Spain, including buying property. …
  3. proof of employment or income.
  4. your latest income tax return.

Can I get a mortgage in Spain after Brexit?

Whether you are an EU citizen or not, you still have the right to buy property in Spain after Brexit. The costs of buying a property remain the same whatever your nationality and, broadly speaking, include purchase tax, a Notary’s fee, a property registry fee and your lawyer’s fees amongst other miscellaneous expenses.

What are the pitfalls of buying property in Spain?

Some of the common pitfalls of buying a property in Spain include deposit, purchase tax, issues with off-plan properties and properties being built illegally. During your research into buying a property in Spain you will have come across many stories of purchases in Spain gone wrong.

Can I get a 100% mortgage in Spain?

Spanish Investment Opportunities

Mortgages for non-residents in Spain are typically 60-70%, but you can get up to an 100% mortgage on a bank repossesion home when you buy with Iberian Properties.

Do I need a Spanish bank account to buy a property in Spain?

You will need a bank account in Spain to pay the utilities invoices and the fees of the Community of Property Owners. In the case that you obtain finance to buy the property, you will also need a bank account for the mortgage monthly repayments.

THIS IS EXCITING:  What Spanish holidays are celebrated in the US?

Can a UK resident get a mortgage in Spain?

There are no UK lenders offering mortgages in Spain. Some Foreign Banks based in Luxembourg, Monaco and Switzerland may consider the property in Spain, but their minimum purchase price is € 2 million and minimum loan €1 million.

How long does it take to buy a house in Spain?

How long does it take to buy a house in Spain? Buying a house in Spain can be done in one day. But if you want to do a proper due diligence and if you want a mortgage it should be about 10 weeks.

Does Spain do interest only mortgages?

Interest only Mortgages

Interest only once readily available in Spain for a limited term has now disappeared from the market. In some rare circumstances and on a case by case basis the Spanish Banks may still consider a very short term of interest only between 6 to 12 months.

How easy is it to buy property in Spain?

How easy is buying property in Spain for foreigners? ³ There are no special requirements or paperwork for foreigners wishing to buy property in Spain, so you shouldn’t have any issues. In fact, foreign investment in Spanish property was traditionally encouraged by the government.

Can you get a mortgage in Spain without being a resident?

You’ll be lent less money

Even though as a rule, a mortgage should not be more than 80% of the value of the property, residents in Spain are often able to borrow up to 100%. In the case of non-residents, the figure tends to fall to around 60%.

THIS IS EXCITING:  How much of a down payment do I need for a house in Spain?

How long does it take to close on a house in Spain?

In order to close a property sale and purchase transaction in Spain, a homeowner must know how long their home might remain on the market. According to calculations made by idealista market experts, the period of sale of a property on the market at the end of 2020 reached an average of 6 months.

Do Spanish banks do credit checks?

Do banks do credit checks? Yes. They will carry out a Spanish credit check (called a CIRBE) to see if the applicant(s) have any existing debts in Spain and they will also ask foreign buyers to provide an independent credit report for their home country.