Mortgage Information

Applying for a mortgage in Spain is similar to doing so in other countries. Mortgages are issued by banks to qualifying individuals. Lenders will make their decision based on various factors. One of the most important ones is your ability to keep up with repayments.

You will find it difficult, if not impossible, to borrow the full purchase amount for any property. That means you need to have the resources to make a significant cash contribution towards your purchase. The more cahs you cna pay, the less you need to borow, and the better your chances of being accepted.

You will also need to show that you have a regular source of income, be it from employment or from other sources.

What documents will I need?

The following documents are normally required for the different types of mortgage applications.

For employed applicants

• Copy(ies) of your passport(s)
• Last 3 months pay slips
• Last P60
• Letter from employer confirming annual salary and length of service
• Bank reference letter
• 3 months bank statements
• Breakdown of your assets and liabilities and monthly commitment to borrowings
• NIE number (obtainable in Spain and not needed until nearer loan issue)

For self employed applicants

• Copy(ies) of your passport(s)
• Previous years tax return
• Last 3 years accounts (sometimes last two or even last one acceptable)
• Letter from accountant confirming your profit figure and that taxes are paid up to date
• Last 3 months bank statements (not always required)
• Bank reference letter
• Breakdown of your assets and liabilities and the monthly commitment to borrowings
• NIE number (obtainable in Spain and not needed until nearer loan issue)

Commercial Mortgages

If you are looking for a mortgage to buy a business, you will need to supply the following:

• An explanation of your previous employment(s) and relevant experience of the enterprise you expect to undertake in Spain
• Details of the tangible asset (always required and usually a local or workshop) to be available as security
• Breakdown of your assets and liabilities and your monthly commitment to borrowings
• NIE number (obtainable in Spain and not needed until nearer drawdown)

The maximum loan available varies. It is normally 50% of the purchase price, but in some cases you can get up to 70% if an easily saleable asset is provided as security.

Bear in mind that the requirements outlined are a general guideline.