loans spain
Mortgage loans
Loans are available to purchase of any type of residential property, whether a small apartment, townhouse, large village, traditional fianc or new development. In order to get mortgage finance you have to obtain the property at Mainland Spain, Balearic Islands and Canarian Islands. For getting the mortgage loan you have to show your proof of income such as P60, self-employed, pension or other tax declaration from other country. The maximum that will be advance is 75% for a non-resident and 80% for a resident of the value of the property or the purchase price whichever is lower. The repayment of mortgage period ranges between 10 to 30 years. Almost all banks apply the redemption penalties, which are called early repayment commissions in Spain. The rate may be 0.5 to 1.5%. Recent Spanish legislation makes it compulsory for anyone selling or buying property in Span to have a NIE which means Identity number for Foreigners.
Mortgage loans in Spain
Spain is a country located in Southern Europe. All Spanish banks want the mortgage to be paid off before you are 80 years old. The mortgage market in Spain has opened up considerably in recent years and all banks generally offer mortgage facilities to both clients and non-clients. Of course clients will receive more favorable terms. In order to obtain a mortgage from bank in Span you must be over 25 and a have fixed employment contract or have been self-employed for at least or 3 years. Residents can borrow up to 90% of the value of the property. Non-residents can usually only borrow up to 60%. Please note that all banks will lend to non-residents.
Financial institutions providing loans
1. Time
2. WSI
3. Casahipoteca
4. Currency Solutions
5. Evergreen Mortgage and General Insurance Brokers SL
6. HIFX
7. Santander Central Hispano
8. Group Banco Popular
9. Ebankinter
10. BBVA
11. Banco Atlantic
Latest instructions
After several warnings from national and international financial institutions that the property bubble is about to burst, the Spanish banks and mortgage financing institutions have decided to put brake on. The branch managers now each case will be studied more stringently
Mortgage costs
The fees and charges for mortgage application will comprise the following
1. Lenders arrangement Fee
2. Stamp Duty
3. Land Registry Fee
4. Notary fee
5. Property valuation
Small and medium size businesses
Small and medium size businesses are entitled to preferential access to credit facilities offered by Spain's state owned financial agency called ICO, which is part of the Ministry of the Economy and Finance. They can obtain a loan of up to 70 percent of the net investment provided you have no other loan or grant. You can get Micro-Credit facility up to 95 percent of the net investment with the maximum of around of Є 25000.
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