Mortgage Advice

Mijas Costa property investment

Mortgage Advice

Mortgage options in Spain include either a European mortgage or a re-mortgage through an existing property.

Non-residents can normally borrow only 70% of the purchase price, but it is possible to have a combination of 70% European mortgage and 30% re-mortgage. Interest rates in Spain are currently lower the UK but the costs for arranging the mortgage are high. If you are buying a new build then a firm mortgage offer will only be given once the property is completed and a property valuation been carried out.

There is a wide range of products available to non-resident clients looking to buy property in Spain and Mila can advise you on the best Spanish or offshore bank for your requirements. The options currently available include:

Low Repayment - Interest Only:

• Up to 15 years interest only
• Up to 70% final valuation
• No redemption fees
• Interest charged on daily basis
• Term up to 40 years
• Up to age 80

Low Deposit - 80% Valuation:

• Up to 80% of final valuation
• Low initial interest rate
• Term up to 35 years

Bridging Loan (New Property):

• Up to 100% value of new property plus costs
• Payment break for first three months
• Interest only up to the end of the third year if unable to sell old property
• Before the end of the third year pay off debt on old property with no redemption fees

Low Repayment - Self-Certification:

• Up to 50% of final valuation
• Up to 5 years interest only
• Minimum proof of ability to pay

Self-Certification - Self-Declaration:

• Up to 40% of final valuation
• For individuals who are unable to prove their earnings - self declaration
• Up to age 75 / 80.
• Term up to 35 years
• Self-signed letter and copy of passport

Low Repayment - Equity Release - Remortgaging:

• Up to 60% valuation
• Interest only up to 15 years
• Term up to 40 years
• Up to age 80
• No redemption fees
• Equity Release
• Up to 70% valuation
• Interest only for up to 2 years
• Term up to 30 years
• Up to age 75

The Spanish banks decide on your ability to repay the mortgage by looking at your net monthly income. Payslips, tax returns and / or bank current accounts are all required as verification of income amounts.

All applicants will be required to supply a copy of their passport, NIE number and bank reference. If you are in employment then you will be asked for your P60, the last three month's pay slips, last 6 month's bank statements and a reference from your employer confirming your role, length of service and current salary (or a copy of your employment contract).

If you are self employed you will need to produce your last Self Assessment Tax Return, a reference from your accountant confirming gross and net income, plus drawings last year and bank statements.

If you are applying as a company you will be asked for Incorporation Deeds, registration documents for the Company (if SL Company) and a CIF Number if it is based in Spain .

Retired applicants need a confirmation letter from their pension provider or pension slips, bank statements for the last three months and their last Self Assessment Tax Return/P60

Above are just the basic facts, so contact us at Mila if you have any further questions.