Mortgage and Currency Exchange Advice from the Specialists
For many people, buying a property represents the single largest financial commitment they are ever likely to make is for them we have created this Financial Guide. If you are purchasing abroad, some of the processes involved will probably be similar to what you have experienced back home, but there will almost invariably be others with which you are not so familiar. VIVA always, and without exception, recommends that purchasers take sound, independent financial advice before getting too far down the line when they are thinking about buying a property in Spain...
The information in this financial guide is of a general orientative nature. Everyone’s personal circumstances and requirements are entirely individual, and for that reason there is absolutely no substitute for consulting our wholly independent and fully qualified financial partners in order to seek their unbiased, specialist advice regarding mortgages, currency exchange, insurance and more…
The Spanish property market has changed significantly since the boom years that shaped the new millennium. And, in pretty much every respect, it has changed for the better. Property prices are realistic, contracts are more transparent and the choice is greater. The cream has risen to the top and confidence has returned.
While still some way short of the 775,000 homes sold in 2007, according to Spain’s National Statistics Institute (INE), the numbers have been growing steadily in recent years. If you would like to stay abreast of latest news and emerging trends related to the Spanish property market, including mortgages and more, check out the VIVA Blog.
Obtaining a Mortgage in Spain
Although the majority of VIVA clients are usually cash buyers, or choose to finance the purchase of their Spanish property through the sale – or equity release – of their property back home, currently around 15 per cent prefer to opt for a Spanish mortgage instead.
With Eurozone interest rates still relatively low, borrowing money is unlikely to become cheaper than it is right now. Of course, no one can predict with any certainty just how long these all-time low rates will continue, but it is sensible to assume that they can’t be maintained indefinitely.
Having exited the grips of recession back in 2013, mortgages in Spain are considerably easier to obtain these days, but lending criteria is still tighter than it was previously. So, in addition to having your own finances in order – transparent, accurate, up-to-date and solvent, obviously – it is also vital to seek expert, independence advice.
While the majority of loans granted these days are variable rate, as opposed to fixed rate, VIVA can help you locate a financial advisor who will work with your interests at heart, in order to help track down a mortgage that best suits your financial situation.
Paperwork you need to apply for a mortgage in Spain
- Passport or identity card
- NIE if available
- For UK citizens (and citizens from other countries where Experian operate) a signed Experian credit report and the last P60
- One utility bill
- Evidence of savings and income
- If available, a copy of the Purchase Contract detailing the terms and conditions of the sale
- If available, the Deeds or “Nota Simple” (Land Registry document) for the property being purchased
- Employed or retired applicants: bank statements for the last six months, and the last six nominas (salary payments)
- Self-employed applicants: bank statements for the last 12 months
- Copy of the last tax return
Your mortgage repayments will more than likely be paid in euros so, if you have purchased a property in Spain but do not live or earn your income here, it makes sense to employ a trusted and professional currency exchange service provider in order to better understand and manage foreign exchange rates. There are several companies that provide such a service but, as ever, it pays to do your research and use a reputable company. Again, VIVA can help you find a trusted currency exchange provider.
Moneycorp – leading currency exchange company on the Costa del Sol
Related News in the VIVA Blog
When it comes to buying a property in Spain, it goes without saying that, financially, if you fail to prepare then you should be prepared to fail. In the VIVA blog I’ve made it my mission to explain as many of these as possible to give you a well-rounded view of the legal, financial and bureaucratic implications of your Spanish home purchase, as well as important changes to legislation. And today is no different, as I talk about Spanish mortgage concession in the current market and what you should expect to have saved as a deposit.
VIVA is happy to announce the most recent update at our brilliant new development, Delta Mar Suites in Riviera del Sol. Now you can take advantage of a jaw-dropping home renovation package, which you can finance up to 70% of in the same mortgage payment that also loans you up to a 70% of the sales price!
Spain’s new credit finance laws, otherwise known as la Ley de Contratos de Crédito Inmobiliario (5/2019), came into force last Sunday 16th June, which is great news for everyone researching Spanish mortgages and looking to make the purchase of their dream property. The new laws provide greater transparency for home buyers and mean mortgagors incur fewer costs. As you will read later in the post, I attribute part of the optimism shared by buyers of Spanish property regarding their ability to acquire real estate to these improved borrowing conditions.
Yes, this is the (long-awaited) news that changes to Spanish mortgage law, “La Ley Hipotecaria”, have been passed by Parliament and are to be enshrined in law in less than 30 days.
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