With the property market in the Marbella area steadily getting stronger and property prices gradually increasing, knowing the facts about getting a mortgage in Spain is of utmost importance. Many of our clients find it rather daunting to go about obtaining all the information when it comes to getting a mortgage approved, so we have put together a practical guide of what is required from you and what you need to know before purchasing your ideal property.
Do The Maths
When you begin looking at properties, in order to determine your budget it is important to research how much the monthly repayments will be on your mortgage and how this fits in with your monthly income and expenditure.
The property market is recovering from the crash and banks have now started offering 70% of the purchasing price once again, though sometimes the figure is higher, depending on which bank you choose. In general, you would need a reasonable cash deposit and the equivalent of approximately 12% of the purchase price for buying costs.
Consider The Timeframes
Mortgages in Spain can normally only be taken out for a maximum period of 30 years and this term must usually end by the time you are of retirement age.
Research Your Options
Just as you want to look around at various properties before making a final decision, the same goes for obtaining your mortgage. Be sure to research what rates the different banks and mortgage brokers can offer you. Rates are typically 2.5-4.5 per cent for the first year, so make sure you check the conditions or choose a flat-rate mortgage.
There are three types of insurance to consider: home and contents insurance, which is obligatory when taking out a mortgage. Life insurance, which is not obligatory, but advisable and mortgage insurance, which is optional.
The buying costs as outlined above, include: a set-up fee (approximately 1% of the value of the mortgage), notary fees (which are variable depending on the complexity of the purchase structure and mortgage deeds), stamp duty (1.5% in the province of Andalucía), legal fees, and the land registry fees
Often, when it comes to legal and official procedures, it can sometimes appear to be more complex than it actually is, and if you have previously purchased or sold a property in the Marbella area before, you will know that it is actually more straighforward than it sounds, however we are aware that clients who have not been through the process before and perhaps don´t even speak the language, can find the procedure daunting and overwhelming. It is for this precise reason that we strongly recommend you to work with experienced, knowledgeable professionals, who are familiar with the process and can give you the correct guidance and advice you will need, in order to complete your property purchase smoothly, from start to finish.
Our team at Fab Property will always be on hand to ensure the process runs as smoothly as possible for you and we work in conjuction with reputable, fully bilingual mortgage brokers and lawyers, who can assist you throughout the buying process. Please contact us for more information on how we can help you find your perfect property.