If you are planning to “help” your purchase with a mortgage this can be arranged on your UK property, but if you do not wish to risk the security of your home in the UK then the answer is to raise money on the Spanish property you intend to purchase.
Spanish banks will today lend up to approx. 40-50% of the value of the property and the interest rate is normally lower than in the UK. The repayment period varies from 10-20 years. Both, lending amount and repayment period are subject to status.
There are also UK banks who will lend against a Spanish property but these tend to be more expensive.
It is a very simple process. You will be asked for some basic information about your current situation, your home, your current work situation and your income.
Many clients have financed their mortgage repayments from rental income. This is of course always an option but remember, normally a rental income is not guaranteed.
Once you have sorted out your budget it is time to look for a property. Whilst some people decide to “walk” it alone, most people choose to go through an agent to save themselves the hassle of finding the properties, instructing solicitors, making sure the property is taken off the market and that it is in a good are and re-saleable if need be. All this of course in another language and whilst the procedures are not all that different from the UK they are different and mistakes can be costly.
To apply for a mortgage the following documents are needed:
- Reference letter from the bank in home country (for all applicants)
- Wage slips (P60) – last 3 months
- List of assets in home country
- Copies of passport/s
- Copies of NIE-numbers
If self-employed last years audited accounts and tax return. Also needed accountants reference letter.