Mortgage in Spain

If your desire to live in Spain is stronger than your financial situation, it is too early to write off buying real estate. We live in a modern world where banks (for a certain percentage, of course) make your dream come true. Today we will talk about mortgages. In Spain, buying a home with a mortgage is absolutely normal. Many locals, as well as foreigners, use these simple services of the country's banks. All major banks in Spain are ready to provide mortgages to foreigners with conditions for every taste and color, as they say. If you have already firmly decided for yourself that it is in Spain that you would like to buy real estate, then you can safely proceed to the mortgage procedure. Usually the loan amount is thirty to fifty percent. Sometimes there are cases when this percentage increases to seventy. The estimated value of the property is determined by an independent appraiser who works on behalf of the bank. Depending on how old you are and which bank you have chosen to receive the loan, the repayment period is determined. Practice shows that loans for the purchase of real estate in Spain are given for a period of ten to thirty years. Of course, there is an opportunity to pay off the loan earlier and live peacefully, without a sense of debt. Unfortunately, it is impossible to find out a firm, stable interest rate on the loan for the entire period. Basically, loans are given at 4.5-5.5 percent per annum for the first year. Then the bank has the right to make adjustments to the interest rate. This already depends on fluctuations in the European financial index. But for you, changes in the interest rate will not be a surprise, because all these conditions will be fixed in advance in the loan agreement that you conclude with the bank. Also, in this agreement, you can specify the stages of loan repayment. For example, these can be monthly or quarterly payments. Here you yourself choose what is best and most convenient for you. In general, mortgages in Spain are characterized by their availability and a transparent mechanism for processing a loan. There is a certain set of documents (you can’t do without them) for drawing up a loan agreement with the bank. These documents include: a foreign passport, a certificate of income (it is recommended to write this certificate in English or Spanish), a declaration (to confirm the absence of tax arrears; another document confirming this will do), documents that confirm your financial status (account statements, documents on financial transactions, a certificate of ownership of real estate, shares, etc.). Now let's talk about the timing. Earlier, we already said that a special person will make an appraisal of the property to determine the mortgage rate. This period takes from two to seven days on average. After that, the bank will decide for some time whether to give you a loan and in what amount. This will take about two weeks. When everything went well and the bank decided to give you a loan, it transfers all the allocated funds to the seller's bank account. Monthly or quarterly (depending on how much you specify in the loan agreement), a certain repayment amount will be withdrawn from this account. If it happens that the funds are not enough for the bank to withdraw, a certain interest rate will be charged for late payment. If you are unable to pay the next installment within a few months (this will also be specified in the agreement with the bank), the bank has the legal right to confiscate your property through the court. But let's not talk about the sad things. There is also a good side to this credit issue. For example, you can repay it early, before the officially agreed term. The payment of the entire loan amount is notarized and then recorded in the property register. Each bank in Spain offers its own terms of cooperation, you have the right to choose the one that suits you in all respects. There is plenty to choose from in this country. You can get a loan in Spain in two, three weeks, maybe even in a month. This also applies to the peculiarities of working with different banks. Therefore, if you have not yet made yourself a long-term Schengen visa, think about it in advance.