At the moment of applying a Spanish mortgage, it is important to have copies of all relevant documents with you. As an employee you need a copy of your passport, the payslips and the bank statements of the last three months, the last tax declaration (P60 document if you are from the UK), the completed application forms for the mortgage and a copy of the Land Registry Certificate ( Nota simple ) confirming current ownership and showing any mortgages or embargoes on your Spanish property . If you are self-employed you need almost the same documents but instead of the tax-declaration you have to show your VAT and income tax returns of the last two years as well as your balance sheets.

The bank will send an assessment agent to your Spanish property to evaluate it. This consists of a detailed report in respect to the quality of construction and material use, the situation, state of repair etc. of the property and its market price which takes all the above into account. This causes you extra costs but you will be informed about the price of property valuation before it is undertaken. Usually the valuation of your Spanish property costs 275? but actually the price depends on the size of the property and is about 0,1% of the property value.

The Spanish mortgage process won't take much longer than a month. If you want to take a mortgage in Spain the bank will expect you to contract a Spanish property insurance that has to cover fire and Third Party responsibility. It is also obligatory to contract a Life insurance.

 

The repayment period of your Spanish mortgage is between 10 and 30 years. It is possible that a resident can take a longer period as a non-resident. If you want to pay your mortgage back before the time ends, be careful of redemption penalties that are known in Spain as early repayment commissions. These penalties are applied by almost every financial institution and can fluctuate between 0,5 - 1,5%.

Some interest rates are as low as 2.5% in Spain, although they are typically a bit higher. When compared to the US and UK, these rates are very desirable. Usually, a mortgage loan is signed at a 20-year term, although this may be something else to haggle about between competing banks. Once you decide on which bank to deal with and pay the setup fee, a mortgage is only a matter of filling out the proper paperwork. Be sure to have the following information handy.

You need the following documents to apply for a Spanish mortgage:

A copy of your passport
A copy of your last issued P45 document
A copy of your last 3 paychecks
A copy of your recent bank statements
Details of the real estate you are buying
Documents pertaining to any other sources of income 

If you are an employer or are self-employed, you will require the following:

A copy of your passport
A copy of your last 3 years accounts
A copy of your last 3 years income tax returns
A copy of your recent bank statements
Details of the real estate you are buying
Documents pertaining to any other sources of income