The Finance Bureau answers the frequently most asked questions about getting a mortgage in Spain

LAST UPDATED: 13 Nov, 2017 @ 15:19
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Columnist Tancrede de Pola

THE Finance Bureau in Marbella has helped thousands of prospective expats and locals find the mortgage that’s right for them.

In his decades of experience, director Tancrede de Pola has been asked everything and anything about the often tricky ins and outs of buying abroad.
Below are the most asked questions.

Q: Can I get a mortgage in Spain if I’m not a resident?
A: Yes, you can get a mortgage here as both a resident and non-resident.

Q: If I am a non-resident, what are the shortest and maximum terms I can borrow for?
A: The shortest term is five years and the longest is typically 25 years.

Q: What is the age limit for getting a mortgage?
A: The age limit is 75.

Q: How long does it take to get a mortgage from first contact to having the funds available?
A: It usually takes around four to six weeks.

Q: Do buy-to-let mortgages exist in Spain?
A: There are no buy-to-let schemes here. While there is a tacit understanding that a property will be let out, rental income will not be taken into account when assessing affordability for the loan.

Q: If I want to buy a property and renovate it, can I get a mortgage to cover the purchase and renovation costs?
A: It is complicated but, once the initial purchase mortgage has completed, it is possible to apply for an additional loan to cover reform costs, always assuming that the valuation stacks up.

Q: If I already have a mortgage, and my property rises in value or I start earning more at work, can I top-up my mortgage or will I have to take out a new mortgage?
A: You can top up a mortgage on the basis that you are intending to carry out a reform on the property or, to purchase another property always, of course, subject to valuation.

Q: What are some of the additional costs of taking out a mortgage?.
A: Mortgage set-up costs can set you back on average around 4 – 5% of the mortgage loan amount.

Q: Can I get a non-binding mortgage offer in principle so that I know my budget before I go house-hunting, or do I have to find a property first to get an offer?A: All mortgage applications in Spain are property-specific so, we do need property details in order to get an agreement-in-principle from the bank. However, at the Finance Bureau, we do provide a service whereby we will make a study of your application, including all documentation and, provide you with an AIP. It is important to note that this pre-agreement is subject to a property valuation and a re-assessment of the customer’s financial circumstances if more than three months have passed since the initial application. There is no charge for this service as we only charge a broker fee on completion, ie., no completion, no fee.

For any more questions contact the Finance Bureau on 952 801 401.

Home ownership has many advantages, especially when you need access to money quickly after retiring. That is because you can take out a reverse mortgage during retirement, which will give you access to a percentage of your home’s equity. You may be wondering what the reverse mortgage disadvantages and advantages are. Benefits include having no monthly repayment requirement, keeping your home for as long as you want, and being able to select how you wish to receive your money, such as in small monthly increments or one large payment. The biggest drawback to such a loan is that the home will be sold if you pass away or move out of it, which means that your heirs will not inherit it. The only way to avoid that outcome is for you or your heirs to pay the full remaining loan amount when you leave the home.

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