Loan to Values
In Spain the standard loan to value offered is currently up to 70% for non-residents and up to 100% for residents. Mortgages are usually linked to the valuation of the property in Spain not the purchase price.

Interest rate
Spanish mortgages are usually linked to a Euribor rate which is the official rate published – a bit like the bank of England base rate. However there is a monthly, quarterly and annual rate which are all different.
Some offshore banks can provide mortgages in sterling secured against your Spanish property purchase, linked to the Bank of England base rate.
Fixed rates have never been very popular or common in Spain although more Banks are starting to offer them. Rates unlike the UK tend to be slightly higher than the prevailing variable rate.

Term
Spanish mortgage terms range from 5 to 40 years but dependent on age. Most Spanish banks will expect the mortgage to be repaid by age 70 but it is possible to obtain a mortgage in Spain up to age 80.

Costs
All Spanish banks charge an arrangement fee for dealing with your mortgage in Spain. Spanish bank opening fees are payable at completion. All other costs in relation to the Spanish mortgage deed including mortgage tax, registry costs and some of the purchase deed costs are deducted from your gross mortgage advance. It is not possible to add your costs to the Spanish mortgage unless your valuation level allows you to. It is important to check you have accurately assessed and accounted for all expenses to ensure you are not left short of funds for completion day. We would suggest you allow at least 12% of the purchase price to cover your purchase and finance costs in Spain in full and that you make sure you are made fully aware of the provision of costs for completion by your lawyer.

Currency
Normally your mortgage will be in Euros and secured against your property in Spain. However, we can arrange mortgages in a number of different currencies.

Underwriting Criteria
Most mortgages in Spain are only granted on a full status basis.
We do have access to limited documentation products but full self certified mortgages are not currently available. Most Spanish banks will assess your income net of tax and will want to see proof of all income by seeing bank statements, tax returns and pay slips
Rental incomes in Spain may be taken into account on a case by case basis and rental income from non Spanish properties will need to be proven. There are no specific "buy to let" products currently available.

Standard Non-resident Document Requirements for Spanish Mortgages

Employed Applicants
3 month's payslips
P60
3 month's bank statements
Employer's reference
Copy of Passport

Self Employed
Self assessment tax return
Accountant’s reference
3 months bank statements
Copy of passport

Resident Document Requirements

Employed
Contract of employment stamped by social security
Vida Laboral
La Renta
3 month's nominas
Bank reference

Self Employed
Certificate of Autonomo or Escritura for SL
Gestor reference
1 to 2 years Profit and Loss accounts
La Renta
Last 3 quarterly IVA returns
3 months bank statements