Mortgage In Spain For Non-Residents?
What is a Non-Resident mortgage? – A non-resident Spanish mortgage refers to a lending agreement that is offered to individuals who are not a fiscal resident in Spain. As a non-resident in Spain, you will typically be offered a mortgage of 70% of the purchase price of the property.
(Residents can expect to be able to get around 80%. ) The longest term you will be able to borrow for is between 20 to 25 years. Getting a mortgage as a non-resident in Spain can be difficult, that is why we recommend you seek professional help from HomeFinance Spain.
Fixed rate mortgages are by far the most popular option for non-residents. As fixed rate mortgage rates help lenders offset some of the risks associated with lending to those who are not fiscal residents in Spain. Non-residents can also expect to pay a 3% retention fee if they sell their Spanish property.
Is it easy to get a mortgage in Spain?
Types of Mortgages – Spain has a very competitive mortgage market and as a result, there’s plenty to choose from when it comes to loans. However, non-residents buying Spanish property with a mortgage have more limited access to loan types and conditions.
How much mortgage can you get in Spain?
How much can I borrow for a mortgage in Spain? – Are you considering buying your first Spanish property ? Whether you’re preparing for a future investment or looking to secure a holiday home as soon as possible, most non-residents require a mortgage to buy their home in Spain.
- The percentage of the property value (before tax) that the bank will finance is known as loan-to-value;
- Banks sometimes base this on their own assessment of the property’s value rather than the purchase price, so it’s possible to get a better rate if the assessor’s value is more than you paid;
For residents of Spain, mortgages can go up to as much as 80% of the purchase price or valuation figure. However, for those purchasing a Spanish property from overseas, the maximum amount you can borrow is 70%. Non-residents will also have higher interest rates and shorter repayment terms.
The majority of foreigners will receive an offer of 60% , meaning you must be able to pay for the remaining 40% yourself. However, banks can sometimes provide up to 100% of the value for a mortgage on repossessed Spanish properties that they list themselves.
While fiscal residents in Spain may be able to get a variable mortgage , non-residents are often restricted to a fixed mortgage. The interest rate can range from 2-4% , depending on the property value and your buyer profile (e. your financial stability and creditworthiness).
To secure the best mortgage rates for foreigners buying Spanish property , you should be able to demonstrate solvency, proving that the repayments are no more than 35% of your income. Having a stable monthly income and applying early in the purchasing process will improve your chances.
Other things like debt repayments – including credit cards, car loans, home improvement loans and any other mortgages you might have, as well as your credit score, will also be taken into consideration by banks when determining how much you’re able to borrow.