Who do you ask for advice when seeking a mortgage? Buying a home in Spain is a very important financial decision - here at Exclusive Marbella, we realise that this can be stressful and sometimes confusing. After we have found your ideal property, Exclusive Marbella will introduce you to a mortgage advisor who will assist you with banks here in Spain and lenders in Gibraltar. We also have links with leading UK lenders who will assist clients wishing to release equity from their principal home to purchase a property in Spain. We have outlined below some of the questions most frequently asked by our clients, but feel free to contact us with any specific requirements at mortgage@exclusive-marbella.com Are mortgages available in Spain for UK residents ? Yes, mortgages up to the value of 70% are available. Where can I obtain a mortgage ? Mortgages are available from most of the major banks in Spain, the UK and lenders in Gibraltar. Also, many new properties under construction on the Costa del Sol are already mortgaged by the developer as a means to raise capital to fund the construction. A purchaser, under the direction of a Spanish lawyer, can take over such a mortgage when purchasing the new construction. In this case the mortgage may be up to the value of 70%. In some cases resale properties are also offered for sale with a mortgage in place. Your lawyer should check out the terms and conditions applying to the mortgage, and advise you accordingly. Mortgages in Spain are attached to the property and written into the title deeds, so it is most important to use a Spanish lawyer who is familiar with this, as the mortgage is on the property and not the person who takes out the mortgage. Get a mortgage quote now !! Rates from 2.75%. Terms up to 30 years. * required field First name * Last name * Telephone [with country and city code] Email address * Have you found a property * Yes No Price of property * Amount of mortgage required * Comments * Heard of exclusive-marbella.com from * -- Please select -- Google Yahoo MSN Word of Mouth Magazine Other What is the cost of arranging a mortgage ? Unless you are purchasing a property with a mortgage already in place, [see above] the cost to arrange a mortgage will be around 1% to 1.5% of the amount advanced. How much can I borrow ? As a general guide a non-resident will be able to borrow around 60% of the valuation of the property. Residents can borrow around 80% of the valuation. Should I have a euro mortgage ? If you borrow in a currency that does not have a fixed value against the euro e.g. sterling, currency fluctuation could make your borrowing more expensive or less expensive depending on the exchange rate at the time. Exclusive Marbella would advise you to borrow in the currency from which you derive most of your income. What interest rate will I pay ? Interest rates will again depend on the currency in which you choose to borrow. Interest rates for mortgages in euros are based on the Euro Interbank Offered Rate, (EURIBOR). The lenders rate will be a margin over Euribor, generally Euribor + 1.25%, but certain lenders may fluctuate on this. Fixed rate mortgages are available at slightly higher interest rates. For more information on EURIBOR, go to http://www.euribor.org . How often are rates reviewed ? Usually once a year. What is the cost of early repayment of the mortgage? From zero to 1% depending on the type of loan. Some lenders only charge for cancellation in the first five years, others make no charge at all. It is important to choose your lender carefully if you intend to repay your loan early. What information will the lender require ? Banks vary in the amount of information they require. As a general guide you can be expected to be asked for the following: Last 3 wage/ salary slips. Last Income Tax declaration/P60 in the UK, or evidence of latest annual tax declaration. Copies of your current bank statements covering the last six months. Reference letter from your employer confirming date of employment and proof of income (not always essential but helpful, especially if you want to achieve the maximum amount of borrowing). Copy of passport/residencia. If you are self employed: Latest Income Tax declaration. . Copies of the accounts for the last two or three years. Chartered Accountants Company report, confirming your annual personal drawings from the company. Personal bank statements. Bank reference letter. Copy of passport/residencia. What about bank charges ? Bank charges for maintaining an account and commissions for transferring money, vary considerably from bank to bank. Some provide good online banking, which can be useful for transferring funds and paying bills in absentia. Which lender should I choose ? Exclusive Marbella S.L. offer a mortgage advisory service which is offered free of charge to our clients. Our independent mortgage advisor is well know and respected by the banks in the area. Our ability to introduce you to the relevant bank with all the necessary paperwork completed will speed up the mortgage process to a successful conclusion. FAQS Welcome to the frequently asked questions about legal matters We have listed below the questions most frequently asked about legal matters by our clients. If you have any questions not listed below, please feel free to contact us by email. legals@exclusive-marbella.com Can I negotiate on the purchase price and conditions ? Once you have chosen a suitable property, the purchase price, terms and conditions are discussed with the vendor. Your offer may be subject to a mortgage, or you may require a delayed completion. This must be stated at the time of the offer. We can recommend a lawyer who can help you with this process. Do I pay a deposit to the vendor ? A deposit is not normally paid direct to the vendor, but to the selling agent or lawyer representing you in your purchase. The minimum normally required is in the region of 3000 euros, but may be greater for the higher-priced property. This reservation deposit is paid by cash or credit card, and will reserve the property until contracts can be exchanged and 10% paid over. How do I choose a lawyer to represent me ? We can recommend a number of different lawyers who can represent you in your purchase. They will speak in your native language, can be reached by phone, fax, and email, and are happy to ensure that your purchase is as trouble-free as possible. A lawyer will provide legal guarantees that the purchase of your property is free from any debts or charges, and that all fees including electricity, water and community fees are paid up to the day of completion. When are the contracts exchanged ? Upon acceptance of the offer by the vendor and payment of the reservation deposit, the next step is to exchange private contracts. This normally takes place within about 14 days. Your legal representative would have made steps to make sure the property is free of debt or problems as above, and the private contract will set out the agreed selling price and the date of completion at the notary. It is normal practice at this stage to pay 10% of the purchase price. What is a notary ? A notary formalizes the sale of a property; they check that the title deeds and purchase are in order before the final payment is made, and the purchase document signed. The notary will then fax a copy of the purchase document to the local land registry office, and the final registration of the documentation normally takes around 2 months. What if I change my mind ? You are committed by the signing of the private purchase contract, and if you choose not to complete the transaction you will lose your 10%. If you have not reached this stage of the purchase all you will lose is your deposit. What are community fees ? Community fees generally apply to properties that share benefits e.g. community swimming pool(s), general maintenance, gardening and security. These fees are set by a president and committee who are voted in at an AGM (Annual General Meeting) every year. Is it easy to open a bank account in Spain ? This can be arranged by you or your lawyer, and is very straight forward. Normally all that is required is a passport and a small deposit to the account. Are properties freehold ? Yes they are. Who pays your commission ? The vendor pays our commission; you the buyer pay no fees or commission. Are there any additional fees to pay like stamp duty in the UK ? Yes there are; as a rule you should allow an additional 10% on top of the purchase price, to cover fees including lawyers, the notary, property registration and transfer tax.