Obtaining a Mortgage for your Almeria Property
SPANISH PROPERTY CHOICE CAN OFFER YOU UP TO A 100% MORTGAGE, THROUGH OUR CORPORATE PARTNERSHIP WITH A PREMIUM SELECTION OF SPANISH BANKS.
Typically here in Spain non-residents can secure a mortgage of 50-60% and residents up to 80% on resale properties.
After many years of working alongside some of the more reputable banks and gaining a professional reputation within the local banking industry,
we can advise you on which bank best services your requirements.
The banks are professionals in finance and are more suited to handle financial matters rather than real estate. Please see our Bank or not to bank page within our information section.
WE OFFER A WIDE RANGE OF BANK SERVICES
We have experienced clear signs of recovery in the market, so this could be a timely opportunity for any potential investment.
Contact us today for all your financial requirements and talk to one of our trained professionals or we will introduce you directly to our corporate banking partners.
Don't get tied up in knots..........
Allow Spanish Property Choice to help you make the right choice.........
IN THE ZONE
Spanish Property Choice Mortgage Information Zone
If you are considering financing your property purchase with borrowing, you will need to get professional advice as early in the buying process as possible. Spanish Property Choice will provide you with a selection of mortgage options to suite each individual purchasers requirements.
The following pages we hope will be of assistance to you and provide you with some basic generic information. As with any financial advice, it is important to talk through your needs with one of our trained industry specialists. We are here to help...
Latest Rates D to I ratio P to L value Remortgage Interest only
Glossary of Terms
D to I (Debt to Income) Ratio
This is the current allowed percentage of your disposable income and it must cover any debt payments you make including mortgage payments, any credit cards or any loans.
P to L (Purchase to Loan) Value
The (LTV) ratio expresses the mortgage value as a % of either the property sale price or the property's appraisal value.
A remortgage is the process of paying off one mortgage with the proceeds from a new mortgage using the same property as security this can be within Spain or within the UK, other EU countries may vary. Remortgaging your current home in the UK can potentially free finance to go towards an overseas property.
Interest only mortgages
A mortgage in which the monthly repayments cover only the interest accrued on the outstanding loan amount over a specified term. This form of mortgage is still available here in Costa Almería and we are always happy to guide you to the best financial house offering the best offers available to you at the time.
Spanish Property Choice can assist you in finding the best financial service providers to aid your overseas property purchase and can access the best deals for you.
When should you get advice?
NOW at the starting point of the buying process.
If you arrange the finance first then you’ll know:
- What budget to set yourself.
- That you actually qualify for a mortgage.
- That you can safely put in a formal offer when you find your dream home.
How will lenders calculate what you can borrow?
The lenders calculate what you can borrow based upon affordability. Each Spanish lender has its own set of terms and conditions however in general, they all work to similar guidelines.
These guidelines balance, in the main, on two questions:
- Can you prove your income?
- What is your debt to income ratio (DTI)?
You must be able to prove your income or the mortgage will be declined. Proof of income if employed will be required via payslips and end of year tax figures and if you are self-employed you will need to provide at least two years accounts.
Most of the banks work on debt to income ratio. This is effectively, the percentage of income, which is used to service debt.
So always ask your self first “How do I propose to finance my overseas property purchase?” before you sign anything.
Armed with this little bit of information you already have an idea as to how an overseas bank will view you and how successful your mortgage application is likely to be here in Spain.
How do Spanish mortgages work?
Spanish mortgage lenders usually base their lending decisions upon what they call a debt to income ratio. Proof of all of your income will be required either by way of your pay slips if you are employed or your accounts if you are self-employed.
Spanish lenders will have a maximum percentage that they will lend against a property value, this varies from lender to lender. Talk to us for an up to date %.
You will need a Spanish solicitor to carry out the conveyancing on your behalf and they must be independent.
What paperwork do I need to submit an application for finance?
You will be required to provide a number of documents. They do not generally offer non-status loans or loans based on limited information. The general list below covers the some of the information they will require.
- Proof of your current address.
- Your last 6 months bank statements.
- Your last 3 months pay slips.
- Your last P-60.
- Your last two years accounts if self employed.
- Your proof of current mortgage or rent payments.
Why use a mortgage instead of selling my house in my current county of residence?
If your house does not sell quickly ask yourself just how long are you prepared to put your life on hold? Have you considered the benefits of letting your current residence property? A short term mortgage may allow you to proceed with your purchase here in Spain, while other matters are being resolved.
I don’t own a property in the UK or an other EU country, can I get a Spanish mortgage?
Yes you can get an overseas mortgage providing you have a sufficient deposit.
I am self-employed is it possible for me to get a Spanish mortgage?
Yes providing you can provide business accounts and or recent tax returns.
I am currently on a pension, can I get a Spanish mortgage?
Yes as you are retired and receiving a pension you cannot be made unemployed and your income is not reliant on whether you are healthy enough to work or not. However you need to be aware that in Spain they do have an upper age limit on their mortgages normally they will give you a mortgage up until the age of 75 years "young"! However Spanish Property Choice always advise you think hard and long about this option. Ask yourself do you really want a mortgage at retirement age?
Surely if I go straight to a bank it would be better and cheaper for me?
Spanish banks all have different criterias. Spanish Property Choice know what these are and can choose the correct lender for your circumstances. We are also fluent in Spanish and will help you through the process from start to finish to enable you to achieve the best deal for you when purchasing a property in Almería.
If I have had a credit problem in the past. Can I get a Spanish mortgage?
It will depend upon your individual circumstances. However the Spanish banks do generally like to see a clean credit history.
How quickly can I arrange the finance?
Our professional team of staff at Spanish Property Choice will discuss your requirements over the phone or when we have the pleasure of meeting you on your visit to the area and will then complete a fact find which will determine whether you qualify. If you do, we will then confirm what deals are available for you, this service we offer free of charge! Once you are happy with your chosen bank and offer then we can help you submit your application and get a decision from the bank. Typically it will take around 3-5 weeks from your initial application to when you receive your mortgage offer.
What will it cost me?
Spanish Property Choice do not charge you anything to help you achieve the finances to aid the purchase of your dream villa in Almeria, we are here to help!
What should I do next?
Contact Spanish Property Choice NOW on 0034 950 615 388 or email firstname.lastname@example.org One of our trained members of staff will call you straight back or email you with the information you need to move forward.