Requirements For Applying For A Mortgage in Spain

2007-03-08 10:33:40

( Financial )



The highest possible amount that can be granted for Spanish mortgages is slightly higher for residents compared to non-residents of Spain. You can approach any local Spanish bank in order to apply for a mortgage in Spain. In order to prove that you can afford to make monthly mortgage payments, you will need to provide evidence of all sources of monthly income and a copy of your tax declaration document (P60). The bank will then verify all the financial documents that you submit, and ensure that it does not exceed a certain percentage of your monthly income before approving an application for a Spanish mortgage.

Aside from proof of your financial standing, you will also need to provide a copy of your passport, or residence permit and information on the property that you are interested in purchasing. The bank will also request you to submit proof of any other property that you own or partially own, some information on yourself and your spouse and a description of your current occupation, assets and liabilities. If you are self-employed, you will also need to supply a copy of your income tax return and bank account information for a certain period. Anyone obtaining a mortgage in Spain will also need to apply for an NIE, which is an identification number that is assigned to a person purchasing or selling property in Spain.

If you are a resident of Spain, you will also need to provide your latest IBI bill. Non-residents of Spain will need to appoint a guarantor, who is a person that will become responsible to pay for your monthly amortization, should you not be able to make your payment.

In Spain, aside from opening fees that need to be paid, the borrower is also responsible for paying fees that involve the valuation of the property, any insurance, stamp duties, deed notary fees, open commissions and arrangement fees.

There are many kinds of Spanish mortgages, and this can be discussed with any Spanish bank. It is important to note that the interest rates for a mortgage in Spain can by made lower providing a number of Spanish banks with copies of the other mortgage offers that you have received.


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