Who do you ask for advice when seeking a mortgage?
Who do you ask for advice when seeking a mortgage?
Buying a home in Spain is a significant financial decision. At Exclusive Marbella, we aim to ease the stress and confusion. Once we find your ideal property, we'll connect you with a mortgage advisor who can assist with banks in Spain and lenders in Gibraltar. We also work with leading UK lenders to help clients release equity from their principal home to buy property in Spain. Below are some common questions our clients ask, but you can contact us for specific requirements at mortgage@exclusive-marbella.com.
Are mortgages available in Spain for UK residents ?
Mortgages of up to 70% of the property value are available, subject to an assessment of your individual financial circumstances.
Where can I obtain a mortgage ?
Major banks in Spain, the UK, and lenders in Gibraltar offer mortgages. Many new properties on the Costa del Sol already have developer mortgages to fund construction, which buyers can take over, usually up to 70% of the property's value. Resale properties may also include existing mortgages. Ensure your Spanish lawyer checks mortgage terms as they are tied to the property, not the individual.
Which lender should I choose ?
Exclusive Marbella S.L. provides a mortgage advisory service at no cost to clients. The independent mortgage advisor is recognized by local banks. The company can introduce clients to the appropriate bank with all required paperwork completed, which may expedite the mortgage process to its conclusion.
Require a mortgage?
Mortgages don't have to be complicated
1 - Instant easy quote
2 - Complete affordability-check
3 - Approved and completed
Initial EnquiryWhat is the cost of arranging a mortgage ?
Arranging a mortgage typically costs 1% to 1.5% of the loan amount, unless the property already has a mortgage.
How much can I borrow ?
Typically, non-residents are eligible to borrow approximately 60% of the property's valuation, while residents can borrow around 80% of the property's valuation.
Should I have a euro mortgage ?
Borrowing in a currency that fluctuates against the euro, like sterling, can affect the cost based on the exchange rate. Exclusive Marbella recommends borrowing in the currency of your primary income.
What interest rate will I pay ?
Interest rates will vary depending on the currency in which you choose to borrow. For mortgages in euros, interest rates are based on the Euro Interbank Offered Rate (EURIBOR). The lender's rate will generally be a margin over Euribor, typically Euribor + 1.25%, but this may vary by lender. Fixed-rate mortgages are available at slightly higher interest rates. More information on EURIBOR can be found at http://www.euribor.org.
How often are rates reviewed ?
Usually once a year.
What is the cost of early repayment of the mortgage?
Cancellation fees range from zero to 1%, depending on the type of loan. Certain lenders impose charges only for cancellations within the first five years, while others do not charge any fees. It is essential to select your lender prudently if you plan to repay your loan early.
What information will the lender require ?
Banks may ask for the following:
· Last 3 wage/salary slips
· Last Income Tax declaration/P60 or latest annual tax declaration evidence
· Current bank statements for the last six months
· Employer reference letter confirming employment date and proof of income (optional but helpful for maximum borrowing)
· Copy of passport/residencia
If you are self employed:
Latest Income Tax declaration.
Copies of the accounts for the last two or three years.
Chartered Accountants Company report, confirming your annual personal drawings from the company.
Personal bank statements.
Bank reference letter.
Copy of passport/residencia.
What about bank charges ?
Bank fees for account maintenance and money transfers differ significantly among banks. Some banks offer effective online banking, useful for fund transfers and bill payments remotely.