The Spanish Mortgage – Mortgages for Spain and Mallorca
All the Spanish banks do provide the mortgages. It pays to shop for the mortgage because of the interest rates as well as the terms that do vary considerably. This depends on the kind bank and the amount together with the time period. You can then of course find a mortgage in the UK Banks or even still from the Building Society. However it is cheaper and also quicker in using a Spanish source or by a Mortgage Broker.
The Mortgages Fees
The fee paid for the mortgage valuation is close to 275 Euros. However it will obviously vary depending on the property size. The search then has to be made in the relevant Land Register as well as get a certificate issued. This is for any corresponding entries for checking any possible existence for other mortgages and loans that are made against the Mallorca property. Once the home you purchase is undergoing construction, then the builders will be requiring that the costs of the property in question be paid in series. Most of the lenders can also provide you a mortgage which simply matches all these requirements that are subject to specific safeguards.
The Financial institutions will then offer you choices of different repayment plans that are usually:
Endowment Mortgage – This is whereby in every single month or even quarter you are required to make two separate payments. They include the interest for the loan and the premium paid on the policy of endowment.
The Capital Repayment Mortgages – This is whereby an individual makes either a monthly or even a quarterly payment for the interest and also the capital for the mortgage. During early years, the monthly payments comprised mainly of the interest. In the later years there came the more of the payment for capital. You are generally given a time period of close to 20 years in bid to repay the value of your mortgage as well as the responsibility for ensuring that you possess a kind of suitable mortgage policy for protection that will assist to repay the particular loan once get to you die before the term of mortgage comes to an end.
Mortgage information from The Banca March
Residents and Spanish purchasing their first home
80% of the property taxation value
Interest rates: Euribor plus a 2% min- 4,5% in total
Opening Commissions: 1,25%
Residents and Spanish purchasing their second home
close to 60% of property price
Interest rates: Euribor plus 2 percent min- 4 percent in total
Opening Commissions: 1,25pecent
Non-Residents interested in purchasing their second home
close to 60 percent of the whole property price
Interest rates: Euribor plus 2 percent min. 4,5 percent in total
Opening Commissions: 1,25%
The necessary items required for a mortgage request
1. Their 3 Last pay slips
2. Shoe the last tax declarations (P60 for UK residents)
3. Application forms filled out
4. Copy of passport
5. Title deed Copy from the Property Register “Nota simple”
1. The Tax returns for the last two yrs
2. The VAT + income tax return
3. The balance sheets
4. 3 Last bank statements
5. A Filled application form
6. A Photocopy (Passport)
7.Title deed Copy from the Property Register “Nota simple”