Mortgages

When buying property in Spain, many buyers need to take out a mortgage in order to complete the transaction. A few years ago it was very easy to find a mortgage and obtain approval as banks were placing few restrictions when it came to lending money to buy property.

Obviously those days are long gone. The Credit Crunch and the economic downturn which has affected most countries has basically meant a complete overhall in banking policies related to mortgages. Yes, you can still obtain mortgages but you have to look carefully and be prepared to provide detailed information about your earnings in order to qualify.

The amounts which banks are prepared to lend have also been significantly reduced. The days of 100% mortages are long gone and the banks now insist on buyers sharing in the risk – ie they need to be able to put down between 20% and 40% of the purchase price in cash.

If you are looking for a mortgage, we would be happy to help as we have direct contact with a number of lenders. We can provide advice and help to make sure you don’t get caught out by the small print on mortgage contracts!

Be sure to read our Guide to Spanish Mortgages for more detailed information on how to obtain finance and what to look out for!