Mortgaging

The problem of mortgaging flusters many people buying real property. Indeed, it appears as a natural result when you have found an apartment that satisfies all your requirements and you are short of some funds to achieve your dream.

We are stating that it is quite possible to get a credit in Spain! Moreover, it is even easier that you might thought if following certain modalities.

Spanish banks are ready to grant a credit to foreigners for buying an apartment from 50% up to 60% of mortgage. Interest rate ranges within 3.5% - 5% per annum.

Mortgage may be provided to buyers of up to 65 years old for the period from 10 and up to 30 years. Here is the list of documents that are to be presented to the bank in order to get mortgage:

  1. Foreign passport.
  2. Certificate from place of employment indicating your salary for current and previous year.
  3. If you are a private entrepreneur, you shall present your certificate of incorporation of self-employed entrepreneur, return of income declaration, and annual balance sheet for the last two years.
  4. You may in addition present certificates on other sources of income, tax declarations, credit reputation, extracts from bank accounts, and information on owned real property. Each such certificate will facilitate getting a positive decision from Spanish bank.
  5. If real property is planned to be bought by married couple, then their aggregate income will be taken into account. Accordingly, married couple have more chances to get mortgage.

Before giving a credit, the bank shall calculate the mortgage rate, and estimate the value of real property item. Such process takes from one up to two weeks. Bank officials determine the value of accommodation, that will be the basis for calculating an amount of mortgage. Mortgage matter will be clenched within 3-4 weeks.

In case of positive decision, the bank will transfer the amount of credit to real property buyer’s personal account to settle payments with the seller. After real property is bought, the owner will pay monthly previously calculates amount of credit including interest via debiting your account. In case the required amount is absent on your account for the regular payment, the bank will accrue interest at a penalty rate.

In case of advanced repayment of credit, some banks oblige borrower to pay 0,5%-1% out of the amount of advanced payment. Such condition shall be included in the credit agreement.

After the total amount of mortgage is paid, mortgage loan will be deemed terminated, which shall be certified by notary’s act and included to the Property Register.