Homes-abroad.net and its mortgage partner work with all Spanish and international banks
Here is a simple step-by-step guide to how the mortgage process works
After receiving a completed online enquiry form, one of our advisers will contact you to discuss your options and a mortgage quote will follow shortly thereafter. They will advise you on the terms of the mortgage, such as monthly payments, level of borrowing, interest rates, fees etc. We aim to send out quotes within 48 hours of your initial enquiry.
If you wish to proceed and have found a property, or wish to finance an existing property, you will need to send copies of various documents to us. Your adviser will confirm what is required.
You will normally need to sign a reservation contract and pay a reservation fee/deposit at the start of the purchase process – the estate agent usually arranges this part of the process. Before you sign any contracts, we recommend that you appoint a lawyer. He will ensure all the necessary checks on the property are carried out and checking the legal status of the property. Also, completion of the mortgage is not possible until you have applied for an NIE number, which your lawyer can help obtain for you.
A bank account will need to be opened in your name with the bank arranging the mortgage. Sometimes this is done at the outset and other times after the formal approval has been granted. Most banks instruct a valuation after the formal approval but some require this to be done at the start of the process. Monthly mortgage payments have to be paid from this account and funds to cover the valuation fee have to be paid into it before the valuation can be instructed. When instructing the valuation, the bank will usually select a company at random from the panel of independent companies it uses for valuations. The selected company will send one of their valuers to the property by prior appointment. After the visit, the valuer will prepare their report and then send it to the bank.
On the strength of the value of the property and the documentation provided, the credit department (underwriters) of the appropriate bank will approve or decline the mortgage. If approved, the bank will confirm the final conditions. Assuming all parties are in agreement to proceed, the bank will then liaise with you, the agent and both lawyers to calculate the funds that you need to have in your account. Once the funds are in place, the arrangements for completion can be made.
An appointment must be made at a notary office to sign the deeds. You or your legally appointed representative must attend the completion. If you do not attend, your legal representative must present a suitable "Power of Attorney" ("Poder" in Spanish) document.
There is no initial charge for simply discussing your situation with us. Most enquiries will lead to us sending a mortgage quote outlining a potential mortgage for you.
We can offer you products from all the leading banks in Spain (including all international banks) and will endeavour to find the right mortgage product for you from the most suitable lender.
Please refer to our Charges page for an example breakdown and explanation of the different charges. At the moment, a general guide is 14-15% of the declared purchase price.There are many variables that affect the cost when stated as a percentage of the purchase price. For example, taxes vary from region to region and, in some cases, according to the property price. Another important factor is whether clients are applying for the maximum mortgage or a lower amount. We advise all clients to contact us for an estimated cost breakdown relative to their circumstances.