If you are looking for a mortgage in Murcia Costa Calida in Spanish Best Homes we have the team to assist you.
Ask for information about Mortgages in Spain Cost Calida or Costa Blanca.
If you need detailed information, speak to one of our advisers… No obligation to contract a mortgage with us.
We will connect you directly with a major bank to offer you the best deal.
Always with an adviser who will talk to you in your language.
Spanish Best Homes will find the best bank to deal with following your criteria.
Banks with branches near you and a fantastic online and call centre service.
MORTGAGE LENDING CRITERIA
It is a good idea to familiarize yourself with the lending criteria in Spain, as they differ from many other countries. Our expert advisors are of course also available to assist you, when you e.mail us for information: firstname.lastname@example.org
The maximum borrowing amount is first of all determined by the loan to value ratio. The loan to value concept refers to the ratio of the mortgage amount to the property purchase price (or valuation if lower). Non-residents buying holiday homes can borrow up to 70% of the purchase price (or valuation if lower). For fiscal residents (those paying Spanish taxes) the maximum mortgage is up to 80%.
DEBT TO INCOME
To determine what you can borrow, lenders look at your ability to pay – debt to income ratio (DTI). Typically, banks require that you allow around 1/3rd of your net monthly income after tax to pay for all worldwide debts and significant expenses (including the new Spanish mortgage).
The maximum term for a mortgage in Spain is 25 years and there are various options for different terms. However 75 is the maximum age accepted by lenders. So if you are 55 years old, the maximum term would be 20 years.
If you are over age 60 and in receipt of a pension, you can still have a mortgage in your own name, although the same criteria relating to the maximum level of debt-to-income will apply. It is also possible to use a guarantor such as a family member to secure your borrowing, which can also have potential inheritance tax benefits.
OPENING SPANISH BANK ACCOUNT
To get a mortgage in Spain you will need a bank account with the bank arranging the mortgage. Sometimes this is done at the outset and other times after the formal approval has been granted. It can often be a good idea to open a Spanish bank account early in the process in order to benefit from the best possible exchange rates. Your adviser can help you figure out what is the best for you.
José A. Polo
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