What To Expect When Applying For A Spanish Mortgage - Foxes.es
by Liz Seyi Digital marketing managerA lot of foreign property buyers in Spain make use
of mortgages, and they do so for a variety of reasons. In most cases, of
course, it is to help afford the purchase, as it means that apart from the
deposit and purchasing costs they can spread the cost out over time. In some
cases the mortgage payments can be earned back through rental income, but even
many who do not strictly need a loan to acquire a Spanish property use
financing because it suits their purposes.
In other words, even potential cash buyers
frequently take out a mortgage for their Spanish property purchase as the low
interest rates offer favourable conditions under which to also reduce their
initial outlay. Such buyers often opt for a 50% mortgage, where people who need
an optimal amount of financing naturally try to achieve as high an LTV (Loan To
Value) ratio as possible.
Primary characteristics
Typically, Spanish banks and other lenders will
provide up to 70% financing for non-residents. For the purchase of a property
of €300.000 this would therefore result in a loan of €210.000 (70%). Successful
application for financing depends upon a number of factors that we will explain
and assist you with:
- Proof
of income, either from work, passive income or ownership of assets – as
reflected in tax declarations
- Proof
of assets and/or cash reserves
- Credit
history and accompanying rating
- Other
outstanding loans or debts, which indicate if you are over-leveraged (have
a lot of loans to pay off) or not
There are other elements too, such as age and the
available period of repayment, which in turn affects the length of mortgage – a
factor in the size of the monthly repayment sum. We provide mortgages for
non-residents, where the 70% maximum mortgage applies, and will guide you
through the process of the documentation and proof of income required to obtain
the best options and most favourable financing conditions available on the
Spanish market.
Contact us to see what we can do for you.
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Created on Aug 28th 2022 08:41. Viewed 150 times.
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