54 | SPAIN
MORTGAGES
www.opp.org.uk | JUNE 2012
Financing in Spain
Spain needs to sell its huge inventory of new homes and few would doubt that one of the keys to the successful disposal of these properties in large numbers is the availability of some mortgage fi nance. Fortunately, the position is getting better – particularly if you are buying a repossessed property from a bank. Liz Syms of international mortgage advisers Connect Overseas reports:
What is the lending criteria?
This depends on the individual mortgage provider – however, typical lender requirements for Spanish mortgages can be found below:
Affordability requirements: The cost of the applicant’s existing liabilities and new mortgage should not exceed 35% - 40% of their net income. Employment history: Minimum 6 months required. Self employed history: Minimum 12 months required. Regions accepted: All regions in mainland Spain and Spanish islands considered. Property types accepted: Most urban properties but not rustic. Applicants accepted: individuals, local companies and UK Ltd companies. All nationalties considered except those affected by international sanctions.
Further information Currency options for mortgage paymernts: Euros only.
Some lenders will require you to open up a bank account with them in order to make the mortgage payments. Securing a mortgage offer can typically take between three to four weeks.
Editor’s note:
This guide was produced on 22/05/2012 The mortgage market changes all the time
For up to date information contact Connect Overseas on +44 1708 676 134 or through their website at
www.connectoverseas.co.uk
A copy of this report is available in the Info Zone at
www.opp-connect.com
What evidence does a buyer need to provide?
This depends on the individual mortgage provider, however document requirements for Spanish mortgages usually include: • Copy of passport • Copies of 2 utility bills • Copy of birth certificate
• Copy of last 3 months’ payslips and last year’s P60 or a copy of the last two years’ accounts and last two years’ tax returns
• Copy of last 3-6 months’ bank statements • Copy of loan statements for last 12 months • Evidence of deposit used to buy the property • Copy of full credit report • Copy of last year’s mortgage statement on all properties owned • Copy of tenancy agreements for buy to let properties • Copy of sales contract • Copy of Nota Simple (property title deed)
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