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If you want to finance your property purchase in Spain, usually this is through a bank and not another finance institution. The mortgage is then based upon the final valuation of the property from neutral professionals.
Do not worry about this process, please, Procon is assisting and taking care of all this so you just have to come up with a few documents. We are collaborating with tthree banks in the area, La Caixa, Bancaja and Banco Popular, all located in Torrevieja.
When the house or apartment is completed, Procon see to that the professionals come to evaluate and prepare for the correct valuation of the property. They then will give the bank the final report and the valuation. Then the bank, after having received this together with your pay slips or similar for the last three months, will have all what it needs for signing the mortgage documents with you.
If you have your own business and you are applying for a mortgage it is necessary that you have a statement with a stamp from your author confirming your income. If you are faxing or sending photo copies of your pay slips or other documents, please also bring with you the originals when you are here to sign the title deed at the notary.
The banks offers mortgages with variable interest rate based on the EURIBOR (the interest rate to the banks from the European Central Bank). For the time being the interest rate is about five per cent. The down payment plan can be discussed with the bank, but usually it is maximum 40 years. However, it should be paid within you are 75 years old. So, if you are 60 years old when you are signing for the mortgage, the down payment time is 15 years (60 + 15 = 75).
The costs in connection with the mortgage varies from one bank to the other. The valuation cost is about €250,-. For establishing the loan they usually charge 1,5% of the total mortgage amount. If you want to finalize the mortgage before the last payment established in the contract, the bank will charge you a fee of 1% of the remaining value of the mortgage. |
