Financial Guide for Spanish Property

First Things First

yourVIVA always recommend that purchasers take sound independent financial advice, before getting too far down the line when they are ready to buy their Spanish property. Our financial partners are wholly independent and fully qualified to give you all the unbiased specialist advice you need about mortgages and insurance. A free, no-obligation consultation will give the chance to find out the following information based on your own individual circumstances:

• What kind of mortgages can I get in Spain?
• How much can I borrow?
• What will the repayments cost me?
• What kind of loan to value is achievable?
• What kind of price range am I looking at within my budget?
• How much deposit will I need and when does it need to be paid?

Spanish Mortgage Overview

Spanish mortgages are available from a number of different lenders, offering a range of products. Unlike other countries whose financial sectors have been decimated by the subprime mortgage market, in Spain there has not been any need for the wholesale bailing out of banks by taxpayers, nor is there likely to be because Spanish banks have always taken a traditionally cautious approach to lending money. Nonetheless, Spain has not remained immune to the global credit crunch and as you would expect, Spanish banks have inevitably been tightening their lending criteria.

So it's even more important that you take advantage of the local knowledge and experience of an independent financial adviser to help you find the mortgage that's best for you.

Documentation required to apply for your Spanish mortgage

In addition to your passport(s), you will also need to have the following documentation to hand when applying for Spanish mortgages:

• Proof of UK residence (e.g. driving licence, council tax receipt)
• Six months' personal bank statements showing declared income and outgoings
• Three most recent wage slips, plus your latest P60
• If self-employed, audited accounts for the last two years
• Last two years' tax returns and a letter from your accountant confirming your income and tax payments for the previous year
• Proof of any other sources of income that you may wish to borrow against
• Copy of any tenancy agreements on buy-to-let properties
• Details of any pension you may be receiving.

Currency exchange

If you do not live in Spain and need to make payments for your property in Euros, you could make significant savings by using a reputable currency exchange company such as Currencies Direct, whose expertise can help you obtain the best exchange rates available. They can also help protect you against possible adverse exchange rate fluctuations and offer a range of other useful services.

Now you have all the information you need about finance on a Spanish property whether it be a stunning Marbella property bargain or a brand new apartment on the Costa del Sol.