| oreigners wishing to buy a property in Spain, there | | | | equally possible to fork out much larger sums of |
| are a variety of different mortgages on offer in the | | | | money, sometimes over €1,000, for the same |
| country. Variable rate mortgages, which come with a | | | | job. |
| changing rate of interest, are the most popular form, | | | | On top of this, you will then be required to pay an |
| but fixed-rate mortgages are also available which | | | | opening fee upon taking out the mortgage, which is |
| come with a fixed level of interest. | | | | usually 1% of the total mortgage. After this, you will |
| As well as being provided by Spanish banks, | | | | then have to pay a whole host of other fees to |
| mortgages are also provided by international banks. | | | | complete the process. These include property |
| Mortgage lenders are quite free to establish the | | | | insurance, which is obligatory for all buyers, a land |
| terms of the mortgages that they provide, meaning | | | | registry fee, stamp duty and a notary fee, although |
| there is a lot of choice on offer in the market. For | | | | the prices for these will vary between lenders. |
| this reason, borrowers should always shop around | | | | As there are so many mortgage lenders in Spain, all |
| considerably before choosing a lender. | | | | of whom will offer different levels of mortgages, |
| The situation for foreigners wanting to get a | | | | many people find that once they have bought a |
| mortgage is slightly different to that of the local | | | | property they then come across a better mortgage |
| residents. We would advise you that foreigners are | | | | and wish to change. For this reason, mortgage |
| unlikely to get as good a deal as residents and, as a | | | | lenders might impose an early cancellation fee on |
| rule, foreign buyers will not usually be able to borrow | | | | their mortgages, which requires you to pay a certain |
| more than about 60% or 70% of the total property | | | | percentage of the total mortgage if you decide to |
| value. This is because foreign buyers represent a | | | | cancel. |
| greater risk to the lenders. Finding a good mortgage | | | | Mortgage Procedures |
| broker, therefore, is almost essential in order to find | | | | When you finally get to the stage of taking out a |
| the best deals. | | | | mortgage after finding a suitable lender, one of the |
| Although we would always recommend that you | | | | first things you will be required to do is to prove your |
| shop around for the best mortgage deal for you, | | | | earnings. If you are currently working in the UK for a |
| some new-build properties, which are popular with | | | | company then you should take details of your pay |
| foreign buyers, will arrange their own arrangements | | | | slips. If you are self employed, then you should find |
| with a particular mortgage lender. In this situation, we | | | | out what the exact requirements are to prove how |
| would suggest that you find out all that you can | | | | much you earn, although it is likely to be evidence of |
| about the lenders and the type of mortgage before | | | | your last three years of earnings. |
| signing up to anything, as it may not be in your best | | | | As mentioned earlier, if you wanted to get a greater |
| interests to take out a mortgage with them. | | | | percentage of the property value in your mortgage |
| Mortgage Fees | | | | then you would have to be a resident of Spain. |
| It can often be quite confusing when you first start | | | | However, becoming a resident is not too difficult. In |
| to look for a mortgage, but if you rush into | | | | fact, we know that if you are living and working in |
| proceedings and choose the first mortgage that you | | | | Spain for over a certain period of time equal to |
| find then you can end up paying a lot more money in | | | | about six months of the year then you will |
| the long term. Mortgages in Spain can be quite | | | | automatically qualify as a resident and will be entitled |
| expensive in terms of the costs involved in setting | | | | to between 80% and 100% of the property value. If |
| them up. As a result, you should always shop around | | | | you are considering trying to get a higher mortgage |
| until you find the cheapest one for you. | | | | loan then we would advise you to move to Spain for |
| Before taking out a mortgage, we would inform you | | | | part of the year first in order to do accomplish this. |
| that there are a number of fees involved in the | | | | After you have taken out your mortgage and paid all |
| process, which can often add up to several thousand | | | | the fees, if you fail to make your payments then |
| euros. | | | | you will be subject to similar foreclosure procedures |
| The first major fee comes in the form of the | | | | as anywhere else. If you default on your payments |
| valuation. Every mortgage lender in Spain will require | | | | then we would warn you that you should not think |
| that your chosen property has been valued before | | | | that running away to your home country will provide |
| they agree to provide you with a mortgage. For that | | | | you with any protection, as Spain has many |
| reason, you will have to hire someone to make a | | | | agreements with other countries that will cover your |
| valuation of the property, and prices for this will vary. | | | | assets in your home country should foreclosure |
| By looking around you should be able to find a | | | | proceedings begin. |
| valuation service for a few hundred euros, but it is | | | | |