Getting a Spanish mortgage is no easy feat. Sure, you can walk into a bank and obtain a mortgage. However, to enhance your chances of a positive application in the form of a Spanish mortgage approval we strongly recommend using our professional help in obtaining your Spanish mortgage.
If you do not speak Spanish then we recommend it even stronger. here are some reasons using a Spanish mortgage service might be beneficial to you in the long run.
Spanish Mortgage rates and terms
Using a professional company gives you access to the entire market for your mortgage.
- We can help you get access to the entire mortgage market. Requesting mortgage approval with many different banks to see which offers the best deal.
- The relationship with the bank’s decision-makers may be the difference between one rate and another potentially saving you thousands of euros in the long run on your Spanish mortgage repayments.
- We do all the work for you. We deal with the bank, the paperwork the application, the language, the red tape that is common in Spain, your end of the bargain is to provide the necessary paperwork for the mortgage application. You also need an NIE Number.
- All this means the mortgage application will be stress-free and that are you more likely to get a positive result.
- 2.3%, as opposed to 2.6% interest rate, can literally mean thousands of euros in the term of your Spanish mortgage. We can get approval by several banks and in turn, negotiate the best deal.
Getting a Spanish mortgage yourself?
It is not impossible to get a Spanish mortgage yourself. If you feel confident then go for it. The point we are trying to make is that we know how to negotiate with the banks, have first name terms with many of the bank’s decision-makers and as things grind very slowly in Spain we have the ability to speed up the process if need be. Leave the heavy lifting to us.
Excellent service, helped me right through the process & got me a great deal with my mortgage. Definitely recommended!
Google Review of Equitas property Spain
How long do Spanish mortgages last?
The longest term for a Spanish mortgage term is 30 years. There are several different mortgage repayment types so be careful to make sure you understand, fixed, variable, mix of both or interest only mortgages. A mortgage broker is paramount to help make the decision on obtaining a Spanish mortgage.
What is the maximum age for a Spanish mortgage?
You can obtain and pay a Spanish mortgage until the age of 75. 30 year mortgages are common but if you are aged 47 this reduces to 28 years and so on. The usual repayment term on a mortgage is 25 years which is similar to the UK.
What are the Spanish mortgage types?
There are two main structures for your Spanish mortgage. Variable and fixed. Variable mortgages in the EU and generally cheaper and are linked to Euribor. This is the EU interest rate that goes up and down dependent on the market. Euribor linked mortgages the percentage you pay can be cheaper than a fixed rate.
Fixed rates are generally higher. A typical Spanish mortgage can be around 2/2’6% dependent on which Spanish bank and how well the mortgage is negotiated. Having a fixed rate Spanish mortgage means that you will always know the amount you will have to pay for the entire duration of your mortgage payments.
Brexit has now caused some frustration and people are now mixed up with what exactly the lending criteria will be sin spain after the 31st December 2020. At the moment Spain are happy to lend to Brits, however it’s unlikely you will get 70% at the moment and more likely it will be 60/65% LTV for a property purchase in Spain. We can often get the 70% needed by having our contacts here. For residents this is likely to be 80/90% and in certain cases we can get 100% .
Spain is open for business, Spain rely heavily on foreign investment for its economy. This does not overjoy the locals as house prices have rocketed and you can see their point. However investment into Spain’s areas creates jobs and brings in much needed tourist money through Malaga airport. Quite simply this equates to a good chunk of Spain’s annual economy and Spain remains to be the second most visited country on the planet behind France.
Can non residents of Spain get a mortgage?
Yes, Spanish mortgages are happy to borrow to non residents. However the amount of LTV (loan to value may differ than Spanish residents. Usually the maximum (to EU residents) is 70% of the value of the property. Although, sometimes you can get more. For residents the maximum is 90% but more likely to be around 80% on most resale properties. Repossessions can sometimes be higher.
What is a Spanish mortgage Broker?
A broker is a professional that knows the banks and the current lending rates, has expertise in dealing with the process of applying for a mortgage in Spain, can often get a better rate for you which over the course of the mortgage will be very beneficial. Not only that , we help you navigate any potential pitfalls that be arise and help with the overall process of buying property on the costa del sol. This in our opinion is worth its weight in gold as Spain is not known for slick processes you may be accustomed to in your own country.
So why deal with a broker?
- Can look at the entire market not just one bank
- Has personal contact with the banks staff and decision makers
- Understand how to present the mortgage application
- Knows which banks are more likely to approve an application
- Stress free dealing with us rather than direct with the bank
- Help with good lawyers and the property purchase process
- Help with unscrupulous agents who can potentially rip you off.
- Knowledge of the best properties and the areas including bargains that are on the Costa Del Sol
- Actually answer emails and the phone out of office hours.