All Spanish banks provide mortgages and are quite happy to do so. It pays to shop around for a mortgage as interest rates and terms vary considerably depending on the bank, the amount and the period of time. You can, of course get a mortgage from a UK Bank or Building Society but it is easier and quicker to use a Spanish source and or a Mortgage Broker.

Mortgages Fees

The fee for the evaluation is approximately 275 euros but obviously varies according to the size of the property. A search must also be made in the Land Register and a certificate issued for the corresponding entry to check on the possible existence of other mortgages or loans made against the property. If the home you are buying is still under construction, the builder may require the cost of the property to be paid in a series of payments. Most lenders can provide a mortgage that matches these requirements subject to certain safeguards.

Financial institutions will offer you a choice of repayment plans which usually include:

• Endowment Mortgage - whereby every month or quarter you make two separate payments, one for the interest on the loan, the other for the premium on the endowment policy.
• Capital Repayment Mortgage - whereby you make either monthly or quarterly payments of interest and capital on the mortgage.
• During the early years, each monthly payment comprises mainly of
  interest. In later years, more of the capital is paid off.
• You will generally be given a period of up to 20 years to repay your
  mortgage and it is your responsibility to ensure that you have a suitable mortgage protection policy to repay the loan if you die before the end of the mortgage term (often a bank will require you to take out a mortgage protection policy).

In general, you can expect to pay approximately 10 percent of the property
purchase price in associated taxes and fees.

Mortgage Details from Halifax

- Residents or Spanish buying their 1st home
- Up to 80% of the taxation value of the property
- Interest rate: Euribor + 1%
- Opening Commission: 1%
- Residents or Spanish buying a second home
- Up to 80% of the taxation value of the property
- Interest rate: Euribor + 1%
- Opening Commission: 1% (Minimum €600)
- Non-Residents who want to buy a second home
- Under €100,000 no loans available
- €100,001 - 650,000 Up to to 70% of the taxation value of the property
- €650,001 - 1,600,000 Up to 50% of the taxation value of the property
- Above 1,600,000 is to be studied on a case by case basis
- Interest rate: 1st and subsequent years Euribor + 1%
- Opening Commission: 1% (Minimum €600)
- No cancellation fee on early redemption (minimum 10% of total mortgage)

Necessary items for a mortgage request

Employees
1. Last 3 payslip's
2. Last tax declaration (P60 if from the UK)
3. Filled out application forms
4. Photocopy of Passport
5. Copy of Title deed from Property Register (Nota simple)

Self Employed
1. Tax returns last two years
2. VAT and income tax returns
3. Balance sheets
4. Last 3 bank statements
5. Filled out application forms
6. Photocopy of Passport
7. Copy of Title deed from Property Register (Nota simple)