Below are some frequently asked questions about mortgages in Spain.

HOW MUCH CAN I BORROW?
Lending in Spain is based on the valuation of the property. For urban properties 70% - 80% can be achieved although for ‘rustic' property only 50% maybe available.

WHAT TYPES OF MORTGAGES ARE THERE?
Almost all mortgages are capital repayment and some include an interest only term. Fixed rates do exist but the interest rates are expensive.

WHAT IS THE INTEREST RATE?
The interest rate in Spain is called EURIBOR. This is based on the European Central Bank base rate and changes every month. Around 5% is a good indicator of the rate available to non residents. With the base rate in the UK traditionally being much higher, raising your mortgage in Spain, Portugal or Gibraltar may be the sensible option.

HOW DO I REPAY THE MORTGAGE?
We can refer you to a commercial exchange company who can arrange a fixed rate for monthly repayments so the sterling equivalent you pay for your mortgage remains the same regardless of exchange rate fluctuation.

WHAT DOCUMENTS DO I NEED?
Employed
1. Passport
2. P60
3. Last 3 months payslips
4. Last 3 months bank statements
5. Bank reference *
6. Employers reference *
7. Credit report *

Self Employed
1. Passport
2. Tax Return
3. Profit & Loss accounts for return
4. Balance sheet to date
5. Last 3 months personal & business bank statements
6. Bank reference *
7. Accountants reference *
8. Credit report *
* required for 80% borrowing

EFPG Mortgages can help arrange your mortgage in Spain, Portugal or Gibraltar, just fill in our Mortgage Enquiry Form and we will get back to you within 48 hours.
You can also use our mortgage calculator to calculate your repayments.

HOW LONG DOES IT TAKE TO COMPLETE?
From deciding on the property you want and paying the reservation deposit to completion is usually 6 weeks if you need a mortgage. Without a mortgage it is usually 4 weeks. This extra time is needed to receive your income documents and to instruct and obtain the valuation.

HOW MUCH IS IT GOING TO COST ME?
In general terms if you are purchasing without a mortgage you will need to pay 10% of the purchase price in taxed charges and fees. If you are buying with a mortgage you will need to pay up to 13%. The fees are listed below:

Purchase Costs
7% IVA (VAT)
1% Stamp duty
1% Legal fees (there may be a minimum to pay)
Notary fees
Mortgage Costs
1% - 1.5% Set-up fee
1% Stamp duty (1% of mortgage value + 1% of total accrued interest)
Valuation fee
Notary fee
Arrangement fee

DO I NEED A SPANISH LAWYER?
Getting an English speaking Spanish lawyer is of paramount importance. The lawyer will check to make sure the property is legal, the debts, if any, registered to the property are being cleared from the sale proceeds. They also controls the flow of money through client accounts, organizes the connection of services, and if they have power of attorney can sign at the notary to complete on your behalf. If you would like us to recommend an independent English speaking Spanish lawyer we would be happy to oblige.