Exploring Mortgage in Spain
Getting a mortgage in Spain :
Mortgage, just like most European countries, is not an alien concept in Spain. And just like in any other nation, there are some minute things that you must know about mortgages for property in Spain.
These add around 3 to 5 percent to the cost of the property, but if you choose them wisely, you shall be pay able to pay them off comfortably. So, here are a few things that will help you in making the best decision regarding mortgage in Spain.
Mortgages in Spain : Yes, Keep in Mind
Spain knows nothing like complex mortgage. There are annuities, interest-only, or a possible combination of the two.
There has been a rise in banks offering a fixed rate (interest-only mortgages) for a long period of time. This rate may even become variable each month or each year. The Euribor rate has an influence on it, and all the Spanish banks clearly state it.
Make sure you do not go by the low rate of interest alone. This may not be a guarantee of the cheapest mortgage as there may be additional charges for products like insurance. The true indicator of a cheap mortgage is the final amount payable at the end of the each month.
Most mortgages will only cover for 60% to 70% of the purchase value of your home or the appraised value (whichever is lower). So, you will have to incur the expenses like notary costs, transfer tax, etc., on your own.
Just in case you go for buying bank repossession from the bank directly, you may be lucky enough to get a 100% cover.
The upper limit is 40 years but, the older you are the shorter it will be for you. So, it is indeed a good idea to consult your mortgage agent regarding this.
The banks will consider factors like your age, income (they prefer that you pay off the mortgage by 75 years of age), the evaluation of the property, family situation, mortgage in your native country, etc.
The application ideally takes four weeks.
The banks solicit different kinds of documents depending on your type of employment and situation as a resident.
So, prepare well and begin buy your dream property in Spain with the most suited mortgage in place.
by W
Mortgages in Spain : a guide for homebuyers | Jacques Olivier Marbella