• What if you want a mortgage?

     

    More and more, Spain is coming out of the financial crisis and banks are starting to allow again mortgage loans. As a financial advisor I have access to a number of banks in Alfaz del pi, Altea and La Nucia to help you with your mortgage application.

     

    What are the main rules that you need to know?

     

    1) As a non-resident you will generally receive 70% LTV ( Loan to Value) . It is important to know: which value! A mortgage application always includes an valuation report. That report, for example, will estimate a value for the villa of 300,000 €. If, however, you can get the villa cheaper, let us say 280.000 € then the bank will base its 70% LTV on the 280.000 € and not on the 300.000 €.

    There are banks that do  let you know whether the mortgage is granted before you have to make the cost of a valuation report.

     

    2) You can only spend 35% of your income on loans. This also takes into account any existing loans that you have now.

     

    3) The term of a mortgage loan is maximum until your 70th birthday. The standard is a mortgage loan for 20 years.

     

    4) The interest and conditions of a loan at La Caixa Bank (18 Aug 2018)

     

     

             20-year Mortgage: Fixed interest of 2.35%

             100,000 € @ 20 years (240 months) = 522 €

             200,000 € @ 20 years (240 months) = 1044 €

     

     

     

     

             Keep in mind that there are a number of additional costs such as registration,  

             register, the notary fees, the gestor etc. Count on a 2% cost of it borrowed

             amount.

     

             Advice: if you want to buy a villa or apartment with a mortgage,

             then count on the net purchase price approximately a cost of + 13%

             These 13% are composed by the property transfer costs (10%) + mortgage costs,

             notary, registro etc ..

     

     

            Ask us for a quote!

     

     

    Copyright Walter Matthyssen