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
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