Mortgages

RDT Abogados benefit from extensive contacts with banks in Spain, particularly, and importantly at branch level.

Throughout the latter part of 2014 and into 2015 we have seen a dramatic increase in clients purchasing properties in Spain.

It seems clear that the property market has bottomed out and is in the process of recovery.

The property prices are now realistic and, together with the favourable exchange rate, means that it is the perfect time to consider purchasing a property in Spain.

It is unlikely that there will be significant price increases as were seen during the property boom, but Spain represents a safe option as a holiday home or long term investment.

The banks are far more conservative with mortgage lending now than in previous years.  It is not uncommon for banks to limit the loan-to-value to 60%, when in previous years 100% + was not uncommon.

RDT Abogados are frequently asked to provide introductions to banks for clients who seek a mortgage in Spain.  We are now offering this service to both new and existing clients.

This is a free service, we do not charge a broker fee.

Examples of current mortgage products are set out below:

VARIABLE RATE

  • Interest rate: 1.5% year one (this is a discounted rate for clients also taking out insurance with the lender)
  • Ongoing rate: Euribor + 1.5%
  • Loan-to-value: 70%

  • Term: up to 30 years
  • Bank arrangement fee: 1%


FIXED RATE

  • Interest rate: 2.75% fixed
  • Loan-to-value: 70%

  • Terms: 20 years
  • Bank arrangement fee: 1%


Documentation Requirements

The bank in Spain typically request the following documentation to be submitted for a mortgage application:

  • Copy of passport (all applicants)
  • Proof of address
  • NIE certificate
  • Last 2 wage slips (if employed)
  • Latest P60 / annual tax statement (if employed)
  • Last 2 annual tax returns (if self employed)

  • Last 2 years annual accounts (if self employed)
  • Accountant’s reference or employer reference (upon request)
  • Credit report
  • Last 3/6 months bank statements
  • Mortgage or rental agreement relating to main residence


If you would like a no-obligation decision in principle, please don’t hesitate to contact us.