Spanish mortgage on property

MORTGAGES FOR PROPERTY PURCHASE IN SPAIN - OBTAINING A MORTGAGE LOAN (STEPS, TIMEFRAME, AND PROCEDURE) - SPANISH PROPERTY ACQUISITION FINANCING SYSTEM

Banks lend a maximum of 80% to Spanish nationals and 60-70% of the property value to foreigners with income sourced outside of Spain, based on an official valuation conducted by a bank-recognised firm.

We collaborate with numerous banks; below are the indicative lending conditions for 2024/2025.

The risk framework for operations involving non-residents is as follows:
- Financing: 50-60%.
- Term for individuals: up to 25 years.
- Effort ratio: mortgage under review + client indebtedness < 30% of net income.
- Indebtedness ratio: 4.7 times the net taxable income.

I am sending a draft of the conditions, pending approval from the risk department:
a. VARIABLE RATE (subject to combined sale conditions)
- First years: 2.35% fixed
- Euribor + 0.60%
b. FIXED RATE (subject to combined sale conditions)
- 2.60%

**REQUIRED DOCUMENTS:**

- A copy of the passport and NIE number is required for each application (if the client does not yet have an NIE number, we can assist in obtaining it);
- Employment status;
- Latest tax return or P-605 or tax certificate from the place of employment;
- Last 3 payslips;
- Bank statements from the last 3 months (personal and business);
- Experian report or creditworthiness report (optional);
- Bank reference letter (for all nationalities except the UK and Spain) (optional);
- Type of employment – employee or self-employed;
- Tax returns from the last 2 years or tax declarations;
- Bank statements from the last 2 years (for all nationalities except the UK and Spain);
- Statement of assets and liabilities for the last 2 years (for all nationalities except the UK and Spain);
- Individual creditworthiness report or Experian report (optional);
- Bank reference letter (for all nationalities except the UK and Spain).

Documents in languages other than Spanish or English must be presented after being translated by a sworn translator into Spanish.

1. NIE (Número de Identificación de Extranjeros) – Foreign Identification Number
2. LTV (Loan to Value) – the ratio of the loan amount to the value of the mortgage collateral
3. LTP (Loan to Price) – the ratio of the loan amount to the price of the property
4. Gestoría/gestor – a specific Spanish advisory institution that helps navigate the exceptionally complicated bureaucratic landscape in the country.