An Insight into Mortgage in Spain

Mortgages in Spain are specially created to offer the best financial loans in the market. Hundreds of clients all over Europe have availed of cheap mortgage loans to finance their properties in Spain. House building in Spain could be a complicated process with the different dialects and languages making house hunting an onerous task. To dispel such complications and hassles, the mortgage business has evolved which ensures reliable and efficient help from banks through personal and special assistance.

Mortgage business in Spain finds a solution that best suits the client’s specification while avoiding the unnecessary costs which often arise during such purchases. Expert advise on all the steps involved as well as the professionals to be contacted are spelt out so that clientele time in Spain is spent enjoyably without chasing the bureaucracy.

Mortgage services for property investment in Spain include integral counseling, technical assistance and financing services. Loans are available for purchasing any type of residential property ranging from apartment to villa. Once the client decides on the loan, arranging a mortgage usually takes three to four weeks provided all the requisite information like income proof, tax declaration and employment status is fully declared by the client. The maximum loan amount would be 80% for non-residents and 100% for residents. Insurance companies issue a fire cover to protect the property while redemption penalties at 0.5% to 1% are charged (this coverage is not compulsory always).

The spain of mortgage and repayment period extends from 10 to 40 years. The assessor of the property is appointed by the financial institute who carries out the survey. Prior to purchasing the house, a lender or solicitor is approached Repayment mortgage (capital plus interest) is about 70% of the property value. In the event of re-mortgage, 65% of the property value can be availed. For those owning a Spanish property and wanting to purchase a new one, a bridging mortgage up to 100% of the purchase price is offered.

The fees and charges comprises of property valuation, lender’s arrangement fees, stamp duty, land registration and notary fee. The legal costs in Spain are same irrespective of which lender is selected. Lending in Spain is based on the client’s residency status and the income position of the buyer. Almost all mortgages are capital repayment while some include term interests. Fixed rates exist but the interest rates are higher. However, the Spanish mortgage market is constantly improving with the variety of options becoming more diverse.

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