Do you need a mortgage to finance your house in Spain? Do you have a house in Spain in mind? Do you want to see what your financial possibilities are?
There are several possibilities to finance a house, villa or apartment in Spain.
- You can finance the property from your own resources.
- You can take out a second mortgage on your own home
- You can apply for a mortgage at a Spanish bank
Applying for a mortgage at a Spanish bank may work differently than in the UK. In Spain, for example, they only have an annuity mortgage and no redemption-free mortgage. In contrast to other banks, Spanish banks use an age limit. The final age is set at 75 years.
It is important to choose a mortgage that suits your current and future personal situation (e.g. income, cohabitation, pension). The bank assesses a mortgage application on family composition, whether you have a rental or owner-occupied house, number of children and age of children, type of work, type of income, etc.
Some of the conditions that apply when taking out a mortgage in Spain are:
- You must finance at least 40% of the purchase price from your own resources.
- You must have sufficient income.
- In general, you may spend 35% of your net income on housing costs.
- Maximum term of 25 years
- Maximum final age of 75 years.
Which documents are required to apply for a mortgage in Spain?
For a quick assessment by the Spanish bank, it is important to provide the correct and complete documentation.
If you are an employee, you must provide the following documents: Last tax return,
last 3 payslips, account statements of the last 6 months, mortgage statement of the owner-occupied bank, and BKR / excerpt from credit registration
If you are self-employed: Last two tax returns, the last two annual accounts, the bank statements of the last 3 months, mortgage statement of the owner-occupied home bank, BKR / excerpt from credit registration and rental contracts (if you receive rental income).
Duration of mortgage application
A mortgage application in Spain can take about 4-8 weeks but depends on each specific situation. The most important aspects are the valuation of the properties and the financial approval at the bank.
NIE number applications
When buying a house it is necessary to request an NIE number. The NIE number (Numero de Identidad de Extranjeros) is an identification number for foreigners in Spain. The NIE number is used as a reference number for the tax authorities. You can request the number from the Immigration Department of one of the local offices of the National Police. There you can report with your passport, copy and passport photos. It may be advisable to apply for this NIE number through your Spanish lawyer.
GogoEstates cooperates with various mortgage lenders in Spain.
We advise and guide you in your own language to go through the Spanish mortgage process. Every day, we enthusiastically strive to answer all your questions and, in the interests of our clients, to go through all the steps behind the scenes. You will be fully supported, with personal guidance and efficient handling of the cases. Our focus is on commitment: we really care if you take out a suitable mortgage.
Every day, hundreds of foreign buyers take out a mortgage in Spain. Gogoestates tells you exactly what the mortgage lender will do for you. During a period of 4 to 8 weeks we have intensive personal contact about the entire procedure, until the moment that the notary is signed. After that you can enjoy your dream home without any worries. And of course you can always contact us if there are any questions or if the circumstances have changed!
Teams on site
The team of our partners consists of Enligsh-speaking staff. This makes it easy for you to contact us and give explanations in your own language. We communicate with the banks in Spanish and give you feedback.
You can reach us by phone and email from Monday to Thursday from 09:00 am to 18:30 pm.
We do not hold a siesta, we are open all day!
Please contact us on +34 615282151