Daunting right? Well, not really, there is nothing to fear to buy your dream home in Spain. However, there are things you need to understand and there are pitfalls if you do not understand them.
Red tape in Spain is common, using what the modern era has offered electronically is not the way it works in Spain. Getting a Spanish mortgage requires being able to navigate the bank processes easily to get you the best Spanish mortgage rate and the best deals.
Firstly, everything starts with an NIE number. If you do anything in Spain this is asked for. NIE numbers are relatively easy to obtain. They can be done by yourself or with the help of a professional. Spanish government buildings tend not to take to kindly to non-Spanish speakers so a professional or a translator to accompany you is recommended for this.
Spanish mortgage approvals
Spanish banks are offering at the time of writing up-to 70% loan to value for non-residents this increases if you are or wish to obtain Spanish residency. Mortgages are not an easy task, Spanish banks work very differently to say banks in the UK where things are much more automated, speedy and efficient. A lot of paperwork needs to be filled in and checks are put in place in place including a credit check in your country of residence.
That said, with the help of a good agency who specialise ion mortgages this can be an easy task. Equitas Property Spain takes each clients individual circumstances into account. Mortgages are not a one size fits all process. You may be looking for equity release on an existing property. You may wish to purchase a second property in Spain. All of these are achievable but almost certainly if you use a professional to negotiate with the bank on your behalf.
Spanish mortgage pre-approval
We can have a pre-approval done for you. This, however, is not ideal. The pre-approvals do not last long and your circumstances may have changed by the time you buy a property. If you know you are buying soon then great, this puts you in a good position when buying. We also are able to have a great idea how we can get you a mortgage.
Can you apply for a Spanish mortgage yourself?
Yes, some mortgages are super straight forward and you could walk into a bank and get a mortgage agreed with no problem. We are here to help people who wish the work do be done for them, have no time to deal with Spanish red tape, have a language barrier, need to understand exactly what they’re signing up for or have an enquiry not quite straight forward. Not to mention the home, life, insurances the Spanish banks wish to force on you in exchange for a “special mortgage rate”. That’s why we at Equitas Property exist, to get these processes done for you. Follow us for info on Spanish mortgages
What about Brexit?
Our opinion is the Spanish will not shut the door or build a wall after Brexit. The country relies very heavily on Foreign investment and tourism. The Brits were at the forefront of that business. Scaremongering stories sell papers and albeit there may be an extra couple of hoops to jump through after Brexit we predict not much will change. Spain has many, Americans, Canadians, Norwegian, Chinese and Russian investors and people with holiday homes who enjoy Spain just as much as the Brits.
Taking residency may or may not be a good idea. Again, this is not a one size fits all process. You may pay taxes in the UK, have a UK business, receive the pension in the UK etc. Bespoke advice is always the best course before deciding to get residency. Please contact us for more details. Spanish residency for more info.