Mortage

Definition: The mortgage loan granted by your lending institution is the loan that enables you to make the house you have in mind yours. Its specific aim is: to facilitate the purchase of the house.
Its main characteristic is that as well as the personal guarantee, the property acts as a guarantee for the payment of the loan.

Amount: How much money do I Get ? A valuation company will tell you the value of the property. You will be obtain 60% to 70% of this amount, may be even more if you provide additional guarantees.
As a general rule the bank recommends that the monthly instalment you will have to pay for the loan should not exceed a 30% of your monthly income. The repayment period will be between 5 - 20 years.
Many of our non-resident clients have been pleasantly surprised to discover that obtaining a mortgage in Spain is a painless process.
Even if you have enough capital to purchase a new Spanish home outright, you may want to consider the option of a mortgage.

Firstly:
...it allows you to raise your spending power avoiding the hassle of altering the property or having to move again if your family requirements change at a later date.

Secondly:
...you could preserve your capital and use some of it to furnish your new home with the furnishings and décor of your choice, or order a new car or even a boat to match your new lifestyle in the Sun.

Thirdly:
You'll recognize the types of mortgage on offer, variable interest, fixed interest or a mixture of both. In fact the range is the same as in the UK, but the great news is that interest rates in Spain are amongst the lowest in Europe and consumer protection is second to none.
Most banks supply all mortgage documentation in English and offer a tailor-made service for overseas borrowers.
Many of our new properties have a competitive 'ready made' mortgage service as part of their offer which simplifies the service even more, or we can help you in arranging your own mortgage lender and independent advice.

Documents Required for Mortgages if employed:

• Last three payslips
• Last tax Return (P60)
• Bank Reference or details of your Bank for reference purposes.
• Last three bank statements
• Letter from employer stating length of employment and salary.
• Copy of your passport

If self-employed:

• Last 3 years accounts from your Chartered Accountant
• Copy of your last tax return
• Bank Reference or details of your Bank for reference purposes.
• Last three bank statements
• Copy of your passport
• Social security

Special Offer Bank: Banco Santander Central Hispano

Mixed Mortgage:

Interestrate: 4.25 % First  year: fixed interest rate loan

Commitment charge: 1% Early cancellation: 1%

Yearly review after the 3rd year: Euribor + 0.75 %

Amount: 60 % of valuation, or asking price, whichever is lower.

Products: Salary or pension paid directly into your account, house insurence, direct debits and standing orders ( light, telefon, water...), telebanco 4 B debit card.

Example: 60.000,-- Euros for 12 Years - monthly repayment: 490,-- Euros

TIPE	5 YEARS	10 YEARS	15 YEARS	20 YEARS	25 YEARS	30 YEARS
	6000 €	6000 €	6000 €	6000 €	6000 €	6000 €
3,00	108,00	58,03	41,51	33,33	28,50	25,34
3,25	108,66	58,73	42,23	34,09	29,29	26,16
3,50	109,34	59,43	42,97	34,86	30,09	26,99
3,75	110,01	60,14	43,71	35,63	30,90	27,83
4,00	110,68	60,85	44,46	36,42	31,72	28,69
4,25	111,37	61,57	45,21	37,21	32,56	29,56
4,50	112,05	62,29	45,98	38,02	33,40	30,45
4,75	112,73	63,02	46,75	38,84	34,26	31,35
5,00	113,42	63,75	47,53	39,67	35,14	32,26
5,25	114,11	64,48	48,32	40,50	36,01	33,19
5,50	114,80	65,23	49,11	41,34	36,91	34,13
5,75	115,50	65,97	49,91	42,20	37,81	35,08
6,00	116,19	66,72	50,72	43,06	38,72	36,04
6,25	116,89	67,48	51,53	43,93	39,65	37,00
6,50	117,59	68,24	52,35	44,81	40,58	37,99
6,75	118,30	69,01	53,18	45,70	41,52	38,98
7,00	119,01	69,78	54,02	46,60	42,48	39,99

Please Note: The information shown in the above table is only an example for guideline purposes only. The example shows repayments in Euros for a typical variable interest mortgage. Interest rates may vary. The mortgage and repayments would be in Euros and are subject to exchange rate fluctuation. This information does not form part of any offer or contractual agreement.

Don´t forget... If you're buying a holiday home for your own use, renting it out when you're not there could generate sufficient rental income to partially or totally cover all your mortgage payments and even return you a profit. If you`ve got any more questions, don`t hesitate and get in touch with us.