Spanish Mortgage Applications

Spanish lenders assess affordability based on 30% of your monthly net income. In some cases Mortgage Solutions Spain can obtain up to 40%. The result of borrowing on a lower percentage of income has a bearing on the interest rate, product offered and amount that can be borrowed. The interest only mortgage option would allow a borrower to raise more than a repayment type as the monthly payments are less.

Documentation for an employed person

• Last 3 wage slips/Last P60/Last tax return
• Last 3 months bank statements
• Contract of employment (if contract workers)
• Passport/NIE (foreigner’s identification number)
• Bank reference*
• Employer’s reference*
• Credit report

*required for 80% borrowing

Documentation needed for a self-employed person

• Last tax return/Copies of accounts for last 2/3 years
• Accountant’s letter confirming drawings
• 3 months bank statements
• IVA returns if Spanish
• Passport/NIE (foreigner’s identification number)
• Bank reference*
• Accountant’s reference*
• Credit report* 

*required for 80% borrowing

Timescale

It would not be unreasonable to expect a formal mortgage offer (oferta vinculado) to be issued in about three weeks. However, depending on circumstances, this could take longer.

Interest Rates

Interest rates in Spain are normally linked to the Euribor, Europe’s base rate. Other banks or lending institutions also use the IRPH (the Spanish base rate) or MIBOR (Madrid Inter-Bank Offer Rate)

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