Spain Mortgages 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.
Can I get a mortgage in Spain as a non-resident?
Banks will lend less money to non-residents While residents in Spain can get up to 80% financing when buying a main residence, non-residents can expect the majority of Spanish banks to only allow them to borrow 60% of the sale value of the property.
How long does it take to buy house in Spain?
One of the first things people should know when buying a property in Spain is how long it will take before they can take ownership. There are no laws in place regulating the time between signing a private contract (called contrato privado de compraventa), paying a deposit, usually 10%, and completing the sale at the notary’s office, however, it does depend on how complex the purchase is.
The private contract, the document signed by both parties and including a deposit paid by the buyer, usually states a time limit for completion. This completion date is agreed by both parties and based on the type of purchase and the buyer’s and seller’s preferences.
In general, timescales for buying a house or property in Spain varies but in general, they are as follows: 3 to 4 weeks: for straightforward purchases, i. properties with no debts, all paperwork in order and financing already in place. 4 to 8 weeks: for slightly more complex purchases where, for example, an architect’s certificate is required or the buyer needs to obtain a mortgage.
Spanish properties purchased from banks tend to fall into this category too. Over 8 weeks: for those purchases where there are problems or time-consuming bureaucratic processes – for example, the property isn’t properly registered or the property forms part of inheritance or divorce proceedings.
In our experience, the completion of a property sale typically takes place between 4-6 weeks after the private contract is signed but of course, the buyer and seller can agree to a longer time if needed. When making a large purchase such as a luxury villa in Marbella or really any property purchase of any significant sum, you should always use the services of a recommended lawyer who specialises in property law/transfers and a reliable and honest real estate agent.
How long does a mortgage offer last in Spain?
The Approval – Eventually the bank will approve you for the mortgage under certain terms and conditions and make you an offer based on that approval. There are certain terms that are more important than others but the basics are as follows: the mortgage period, the interest rate, the type of interest charged and the monthly payment amount.
Let’s take them one by one. Firstly the time period. Mortgages in Spain have an average life span of around 23 years the last time I read about it. It is normal to be given a mortgage for 20, 25 or 30 years with some banks going to 35 years with an upper age limit of 75 or even 80 years old at the end of the mortgage term.
However with interest rates being so low currently and the trend being for fixed rate mortgages, banks are often looking at 20 year fixed interest mortgages. If you get a good fixed rate interest mortgage then take it, as our American clients say, ” 2% fixed rate for 20 years !!!??? Free money!” And on that interest rate, our latest mortgage approvals have been anything from 1.
5% fixed rate to 2. 75% fixed rate. Why the variability? It depends on the client profile, the source of funds, the inherent risk etc… Basically, if you don’t need the money then the bank will give you a better rate of course, go figure! If you get a variable rate then expect first year rates of around 1.
25% and upwards and ongoing rates, they change every year according to the base Euribor rate, of anything from Euribor +0. 8% upwards. As Euribor is currently in negative territory it might seem a good idea but if the rate rises in the future your payments on the mortgage could rise every year, remember that Euribor in 2008 was as high as 5. 
By Peter Lauppert – Own work, CC0, https://commons. wikimedia. org/w/index. php?curid=8160026 The monthly payment is made up of two parts, the capital repayment and the interest payment. On your bank account it will show as a single payment but it is two separate parts. On signing for the mortgage the bank will give you a printout of the payments you will make either over the first year in the case of variable rate mortgages or for the life of the mortgage in the case of fixed rate mortgages and this will detail how much of the whole payment is capital and how much interest.