RESIDENT MORTGAGES SPAIN
As a general rule a resident can borrow 80%, however we do have banks which can lend 120%. Most our banks however lend on the valuation and not the amount you are paying, this is referred to as LTV (Loan To Value) This is normally to your benefit. Below is a quick calculation explaining how it works -

Valuation 200,000€ - You are paying 185,000€. You will receive 80% of the valuation, this means 160,000€. The percentage you'll receive based an the purchase price is therefore 86.4%.

ARE YOU A RESIDENT?
The law changed in July 2005. You no longer require a resident's card in order to be a resident. As of July 2005 you will ONLY be considered a resident if you pay tax in Spain. This does NOT include the house tax (IBI). This rule also applies when you come to sell your property. Even if you hold a resident's card it means that you may not be resident after all. If you pay tax in Spain you will be RESIDENTE FISCAL. To prove that you are RESIDENTE FISCAL you need to go to the hacienda (tax authority) and get a certificate. This SHOULD be sufficient for all banks, however a lot of banks are not taking any notice of the new law and are still insisting on the resident's card.

One of our banks can however help you with 120%. Again this is based on the value of the property and not what you pay for it. Only one bank will accept a property built on rustica land. We need in addition of the nota simple Certificado de prescripcion urbanistica - document to confirm build is legal. This can be obtained from the ayuntamiento. In order to qualify for the 120% mortgage you need to have worked in Spain for 3 years as an employee or as self employed for at least 3-5 years.

Mortgages in Spain are normally based on the base rate in Europe, this is called Euribor. For an overview of all products we offer please click on the following link - Our Mortgage Products. You are welcome to use our calculator to work out your monthly payments.

CRITERIA FOR A 120% MORTGAGE
Each applicant is looked at individually. The risk department will look at where you work, what your duties are, how long you have been employed for and so on. Send us all your details and we'll do everything in our power to help you.

DOCUMENTS WE NEED (if you have problems with Spanish just phone us)

Asalariado
Tres últimas nominas
Ultima declaración de la Renta o el último certificado de retenciones
Certificado de empresa confirmando salario y comisiones (si se perciben) y antigüedad
Contrato laboral, si es temporal se necesita vida laboral

Autónomo
Declaración de la Renta y pagos trimestrales (último ejercicio)
Alta en el I.A.E.
Movimientos bancarios de los últimos 3-6 meses (cuenta personal, no de empresa)
Documentación complementaria

Solicitud de préstamo hipotecario con datos completos
Copia DNI o Tarjeta Residencia en vigor
Nota simple o datos regístrales de la finca a hipotecar

PROPERTY REGISTRATION
Properties are registered in "El Registro de la Propiedad" in Spain- the land registry. There are several throughout the whole of Spain. All applications need to be accompanied with property details. For this we need a "nota simple". This is an extract of the deed or escritura in Spanish. Normally the estate agent or your solicitor would supply one for you, however it mustn't be older than a month and if you would like us to help you with this document we can order it for you. We then need the following details which are normally found on page 2-4 in the deed. Where the property is registered as well as the following numbers - finca, tomo, folio, libro. We charge 25€ for this service.

Properties are either registered as "urbana" or "rustica". "Urbana" means urban and the property is normally on an urbanization, in town or just on the outskirts. Apartments are always urban. When it's registered as urban this means that the council or in Spanish "ayuntamiento" has full responsibility for the infrastructure such as roads and sewage. This is why urban properties always have a higher value. Normally if you buy a "rustica" property the size of the land is usually larger than 5,000m2.