Frequently asked questions

Q. Do I qualify for a mortgage?
A. Your ability to repay the mortgage based on your net monthly income is how the banks in Spain make their decision. Upon looking at your payslips and up to date bank statements/tax returns the bank will decide if your net monthly income allows you to qualify for a mortgage.

Q. I can’t provide proof of income. Can you still help?
A. Without proof of income we have the ability to help you find a loan of up to 50% of the purchase price. Instead of the typically required proof of income, the banks will usually require a completed application form, a copy of your passport and a bank reference letter.

Q. Is it possible to finance 100% of the purchase price?
A. Depending on the valuation of the property this is a possibility and is much more probable if you are buying an off plan property. During the period between agreeing the purchase price of the property and the completion date, the value of the property will normally have risen. Some banks will use this final valuation and it may mean that 100% of the purchase price can be funded.

Q. What extra costs are involved when purchasing a property in Spain with the help of a mortgage?
A. Typically the costs fall under two categories – Purchase costs and mortgage costs. To cover these you will need to budget approximately 12–13% of the purchase price. Please find below a breakdown of the usual costs.

Purchase costs:

7% transfer tax on resale properties or 7% IVA (Spanish VAT) on new builds
1% stamp duty on new builds
1% Lawyers fees
1% notary and land registry fees

Mortgage Costs:

Bank opening and arrangement fees
Valuation fees
Building insurance

Q. How long does it take from applying for a mortgage to obtaining one?
A. With our knowledge and experience of the Spanish banks we can usually give you a good verbal indication within 2 days as to whether or not it is likely your application will be successful. This is subject to a full application, required documentation and a valuation. Once the bank has all the necessary documentation the whole process should take between 4-6 weeks

Q. How do I apply for a mortgage?
A. You can contact us at the office and discuss your requirements and options with one of our advisors who will then provide you with a quote, or alternatively you can fill in our on line enquiry form and forward it to us via email. One of our advisors will then contact you to discuss your enquiry, talk you through the quote and the documentation that is required.