Getting a mortgage
It is possible to achieve a mortgage for up to 70% of the purchase price or valuation, whichever is the lower.
It is recommend that you budget your total mortgage and purchase costs at approximately 12% Please note within this, you should allow for notary and solicotor fees, plus taxes on the purchase deeds. ALL banks will levy an opening fee of 1% of the mortgage amount.
ALL banks nowadays will 'insist' on life and home insurances, but will offer preferential interest rates when both are taken.
Interest rates will vary, but typically from c2.9% for the first two years, moving to c1.9% plus annual euribor thereafter. Rates are however determined by the application and are negotiable.
Terms can be to age 70. Maximum term 25 years.
You will need NIE certificates for all parties to the purchase and mortgage. These need to also be registered with the local Spanish tax authority. Although not a difficult task, it can take some time, so best to be addressed as soon as possible.
Once the mortgage is approved, and the terms and conditions have been issued, the new law in Spain to protect the consumer, is that a period of 17 days must be given before signing can take place for both the mortgage and purchase deeds. The notary will want to ensure that you, as the client, are undertaking the mortgage with full knowledge of the terms and conditions. This can be undertaken on your behalf if you execute a suitable power of attorney with whichever lawyer you decide to use for your conveyancing. It might therefore be prudent to discuss this right at the outset with the lawyer