Taking a Spanish Mortgage

 

If funding is required, then the purchaser can talk to a local bank. The agent can provide information on the property along with the registry details. The bank will usually lend up to 60% of the total purchase price + purchase costs, with the purchaser providing the balance from their own funds.

The bank will ask for:

 - Proof of earnings (preferably tax returns).

 - A statement of assets and existing mortgages.

 - Bank account extracts covering the last 2 years.

 - Copies of the passports and NIE numbers of the applicants.

 They complete a study which takes about 2 weeks, and if the financing proceeds, then:

 - The purchaser opens an account with the bank.

 - A bank valuer visits the property and makes a report.

 - The valuation becomes the basis of the final loan amount.

 - After about another 2 weeks the loan is approved.

At his point a representative of the bank is ready to visit the notary office for the completion of the sale, with a cheque for the loan amount, and to sign the mortgage deed along with the purchaser, witnessed by the notary.The number of payments is specified in the mortgage deed along with the various conditions of the loan.

The total cost of the mortgage will be about 2,5% of the amount borrowed, to cover the opening fee, valuation, administration and notary and registry fees.