Overseas Finance

Property Finance in Spain

Overseas Mortgages Direct's Guide to Property Finance in Spain.

At a glance:

	Mortgage	Refinance	Equity Release	Buy to Let
Maximum Loan to Value	80%	70%	60%	50%*
Maximum Interest only period	40 years	10 years	10 years	0
Maximum term	40 years	30 years	30 years	30 years
Maximum age on completion	80	70	70	70
Average interest rates	5.2%	5.2%	6.5%	6.1%
Average monthly price per thousand	5.50	5.50	7.12	6.55

Process:
Spanish banks are very experienced in handling non resident mortgage applications and can have mortgage offers in place within two to three weeks due to the large variety of products available, there is generally a mortgage available for all applicants.

Approximate timelines (weekends not included):

1.	Approval in principle	Instant
2.	Final licenses	Day 1
3.	Property registration details	Day 1
4.	Application (receipt of documents)	Day 1
5.	Power of attorney	Day 1
6.	Confirmation of approval in principle	Day 3
7.	Valuation	Day 10
8.	Formal offer	Day 15
9.	Arrange signing	Day 20
10.	Signing	Day 20
11.	Transfer of deeds	Day 20
12.	Payment to developer	Day 20
13.	Agency of service	Day 20
14.	First mortgage payment	Day 21
15.	Commission received	Day 41

Costs:
For guidance purposes, as costs vary from lender to lender:

Cost	Amount	Payable
Application / bank fees	€200	Up front
Valuation fee	€700	Up front (refundable)
Opening Commissions	1.5% of loan amount	On signing
Registry / Notary fees	0.8% of purchase price	On signing
Agency of service	€120	Annually on signing date

Currencies:
Spanish Mortgages are available currently in Euros, GBP, US Dollars, Swiss Francs, Canadian, Hong Kong, Singapore, Australian and New Zealand Dollars.

Source: Overseas Mortgages Direct