When you’ve made the decision to buy a property in Spain, regardless of your fiscal residency, Baleario Solutions is here to help you secure the best mortgage possible. Our aim? To find a mortgage that aligns perfectly with your unique needs, ensuring it’s with an accessible bank where your personal account manager is on hand to support you for the long term.
Great Climate:
Spain is known for its warm and sunny climate, with an average of 320 days of sunshine per year. This makes it an ideal place for those who enjoy outdoor activities.
Quality of Life:
Spain offers a high quality of life, with a relaxed lifestyle, excellent healthcare, and a safe environment. The country is also known for its rich culture, history, and cuisine.
Affordable Living:
Compared to other Western European countries, the cost of living in Spain is relatively low. This includes the cost of housing, food, and other daily expenses.
Investment Opportunity:
Spain has a strong and stable property market, which has shown steady growth over the years. Many people see buying property in Spain as a sound investment.
Accessibility:
Spain is easily accessible by air, with flights to and from major cities around the world. Once in Spain, it is easy to get around by car, train, or bus.
Formal application: This usually involves filling out an application form detailing personal and financial information. Documents: Banks typically require proof of income (e.g., pay slips, tax returns), personal identification, proof of existing debts, property details, and the NIE. Non-residents might also need to provide credit reports from their home country.
The bank will commission an appraisal of the property to determine its market value. This ensures the bank doesn't lend more than the property's worth. You'll typically need to cover the cost of the appraisal.
If all documentation is in order and the valuation is acceptable, the bank will provide a mortgage offer. This will detail the loan amount, interest rate, term, and other conditions.
If you don’t have one already, you'll usually need to open a bank account in Spain to service the mortgage.
This is done in front of a Spanish notary. Both the property deed (escritura pública) and the mortgage deed will be signed simultaneously. The notary's role is to certify the agreement and ensure all parties understand the terms.
The bank transfers the mortgage amount to the seller, and you'll cover the remaining amount and associated costs. The property and mortgage are then registered at the Land Registry.
Expect to pay various fees: notary fees, registration fees, property transfer tax (or VAT on new homes), and stamp duty on the mortgage deed.
Begin your scheduled monthly repayments to the bank as per the terms of your mortgage.
The interest rate remains constant throughout the term of the mortgage. Offers stability as monthly repayments won't change, regardless of what happens in the broader economy.
The interest rate fluctuates based on the Euribor (Euro Interbank Offered Rate) plus a margin set by the bank. Monthly repayments can change, typically reviewed annually, depending on Euribor movements.
Combines features of both fixed and variable rate mortgages. Part of the mortgage is at a fixed rate, and the other part is at a variable rate.
Initially, you only pay the interest on the loan for a specified period (e.g., the first few years). After this period, you'll start paying both the interest and the principal. This option is less common in Spain than in some other countries.
Specifically for individuals who aren’t fiscal residents in Spain. Typically require a higher down payment and may have slightly higher interest rates. The amount one can borrow might be limited to 60-70% of the property's value.
For individuals looking to build their own home rather than purchase an existing one. The funds are released in stages as the construction progresses.
Temporary short-term loans designed to help individuals bridge the gap between selling their old home and purchasing a new one. Once the old property is sold, the proceeds are used to pay off the bridging loan.
Allows a borrower to switch their mortgage from one lender to another to benefit from better terms or lower interest rates.
Designed for older homeowners, allowing them to convert a part of their home equity into cash. The homeowner doesn't need to repay the loan as long as they live in the home.
Some Spanish banks offer special mortgages for homes that are energy efficient or for retrofitting homes to improve their energy efficiency.
It’s no secret that interest rates have been rising for over a year.. And while the mortgage deals available today are very different from two years ago there are still many great deals out there. Whether your looking to move from an existing mortgage, or you are new to Spain and taking out your first mortgage, Baleario Solutions has relationships with all the mainstream and specialist lenders, ensuring we will find you the best mortgage for your needs. Right now there are fixed rate mortgages available from 3.5%.
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