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IMPORTANT: Regardless
of whether you can buy a Spanish property outright,
it is worth considering taking even a small mortgage
on your chosen property. The bank will ensure that
the property is fully legal, as they are not likely
to lend against properties that are illegal.
You should also use the
services of an
INDEPENDENT
solicitor to assist you when making a purchase
of your new property. To estimate your mortgage
payments go to the
calculator at the bottom of this page.
If
you have not already arranged for a mortgage to fund
your new property in Spain, we can take you to a
selection of banks and brokers during your visit to
obtain mortgage quotations. You will need to provide
specific information about your financial status and
income etc. Banks or Brokers will also run credit
checks with credit agencies in your home country,
such as
Experian in UK.
so it's best if you do this first so you know your
own credit status according to Experian that is. You
may need to contact
Experian to rectify any errors that appear on
your
credit report before applying for your overseas
mortgage.
You can consider
equity release from your UK property to fund the deposit or
even the entire purchase. You should seek advice from your IFA (Independent Financial Advisor) as there are
circumstances relating to inheritance tax and capital gains
tax and currency fluctuations where it may be better to have a
Euro mortgage on your
Spanish property than to own it outright !! It is prudent to
use the services of an IFA who is authorised to advise on
European property tax and investment options.
Before
considering the offer of a mortgage the bank or lender will require
to see and verify the following documents:
-
Experian Type Credit Report
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Passport / Residence permit / Spanish Identity Card
of applicants.
-
Tax Declaration (P60) for the last financial year.
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2 latest salary slips (employed workers).
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Proof of other income, last 3 years accounts (if
self employed).
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Declaration deed for new building from developer
(new building) or property deeds of the current
owner (resale property).
-
Private sale-purchase contract or letter containing
offer.
-
Proof of income tax payments made during the current
financial year and declaration of assets and 3
previous years accounts (in the
case of self-employed or independent professionals).
-
N.I.E. (Foreign Resident’s Spanish Tax Registration
Number)
Some
UK banks now have branches in Spain and also offer overseas mortgages and maybe worth
contacting:
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